Promotions are a powerful tool for suppliers looking to secure valuable retail space at Home Depot and Lowe’s—but only when built on a promotional strategy. Understanding the nuances of effective promotions is essential, with the best promotions going beyond discounts to reinforce categorical roles, drive meaningful traffic and align with the retailer’s goals. A thoughtful, well-researched approach is often the deciding factor for big-box retailers looking to build strong partnerships that boost brand visibility in a competitive market. Planned correctly, promotions become a dynamic avenue for growth and a true differentiator in-store and online.
Suppliers interested in securing promotional space with a big-box retailer must first understand their category's role in the retailer’s overall strategy. While some categories may serve as traffic drivers to draw customers into stores, others are designed to build profit margins or compete on price.
Pro Tip: Tailor promotions to match each retailer’s priorities to increase your chances of landing promotions and building successful, mutually beneficial partnerships.
Promotional timelines can vary dramatically depending on several factors, including category complexity, supply chain fluctuations and promotional scope. In some cases, promotions come to life just 90 days in advance, but more often, timelines stretch to nine months or even longer. An extended planning period allows suppliers and retailers to coordinate essential elements such as inventory levels, ad placements and merchandising support, ensuring everything is in place for a seamless launch when the time is right.
Pro Tip: Integrate promotions into your annual planning cycle, rather than handling them as last-minute additions.
One common pitfall in retail promotions planning is poor inventory management. Suppliers should ensure they have enough product to meet anticipated demand throughout the promotional period. Not having sufficient backfill or safety stock can hinder an otherwise successful promotion, leaving retailers with empty shelves and disappointed customers.
Pro Tip: Plan packaging and display changes in advance to boost the promotion’s appeal and demonstrate your commitment to the partnership.
Suppliers should consider the overall impact of their pricing strategy on their business and their preferred retailer’s goals. A well-balanced approach that accounts for profit margins, promotional discounts and potential volume increases will fulfill the objectives of both parties, setting the stage for a successful promotion that drives sales and enhances brand visibility. This type of proactivity allows for competitive pricing and a smoother execution overall.
Pro Tip: Understand your program dollars to avoid last-minute reaction promotions that may impact your margin in an unplanned way.
“Flashy” promotions may initially capture customer attention, but the “boring” promotions often yield the most substantial results at retail. For example, volume pricing aimed at pro customers—especially for project purchases—can drive significant business. While these promotions may lack the glitz and glam of seasonal sales, their effectiveness in boosting sales volume should not be overlooked.
Pro Tip: Look closely at each retailer’s strongest categories to begin shaping successful promotional strategies.
Events like Black Friday, Cyber Monday and other seasonal promotions will continue to drive sales and traffic, but new trends are rapidly emerging in retail. As the pro market expands, Home Depot and Lowe’s are gearing up to focus on earning the loyalty of larger contractors. Historically, some pros have relied on big-box retailers primarily as a fill source, but they’re now being targeted for more extensive business opportunities. Innovative promotional formats are also on the horizon as big-box retailers increasingly embrace e-commerce and digital sales.
Pro Tip: Prepare to adapt strategies that leverage all new avenues equally and effectively so you can remain relevant in retail.