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Home Depot Pulls Its Spring Promotions to Dampen Customer Traffic

By Demitri Kalogeropoulos – Apr 1, 2020 at 8:52AM

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The retailer is trying to maintain its services without risking more COVID-19 outbreaks.

Home Depot (HD -0.86%) is taking new steps to reduce customer traffic at its stores during what is normally its peak selling season. The home improvement retailer said on Wednesday that it has eliminated its spring selling promotions in an effort to reduce social interactions as COVID-19 spreads across the country.

An empty home improvement aisle.

Image source: Getty Images.

The retailer is aiming to balance its desire to satisfy consumer demand, which has spiked for a wide range of essential products, against the priority of protecting the health of its shoppers and employees. Those goals are sometimes in tension, so the chain has made additional changes to its business, including closing stores earlier for sanitization, limiting the number of shoppers inside at any given time, and adjusting the store layout to maximize social distancing. Those efforts now include the elimination of spring sales promotions, which tend to drive extra customer traffic in a normal economic environment.

"Home Depot is committed to providing the essential needs required to maintain homes and businesses while doing our best to protect our valued customers and associates," CEO Craig Menear said in a press release. "This has resulted in several temporary changes to our business as we look out for your safety and the safety of our associates."

Demitrios Kalogeropoulos owns shares of Home Depot. The Motley Fool owns shares of and recommends Home Depot and recommends the following options: long January 2021 $120 calls on Home Depot and short January 2021 $210 calls on Home Depot. The Motley Fool has a disclosure policy.

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