Home Depot has introduced two major initiatives to win back customers, reflecting the challenges faced by home improvement giants in 2025. In the first half of 2025, both Home Depot and Lowe’s experienced a decline in foot traffic, with Home Depot seeing a 3.8% drop and Lowe’s a 3.5% decline year-over-year. This downturn was attributed to a sluggish housing market and broader economic headwinds, including price increases, job losses, and higher interest rates. These factors have led to a shift in consumer behavior, with homeowners opting for smaller, essential repairs over large-scale renovations and focusing more on high-ROI upgrades.

To address these changes, Home Depot launched an AI-powered Material List Builder on January 26, 2026. This tool helps professionals create project material lists in minutes, using natural language processing and voice-to-text capabilities. The AI can interpret project descriptions, generate grouped material lists, and even match Home Depot products from uploaded files. This move aims to save time for professionals and enhance Home Depot’s reputation as a home improvement authority. Additionally, Home Depot has partnered with Wahlburgers to add food trailers outside select stores, starting with three locations in Florida. This initiative, part of Wahlburgers’ growth strategy, will expand nationwide throughout 2026, offering customers a more convenient and experiential shopping experience.

These strategic moves by Home Depot are designed to enhance customer loyalty in a market where foot traffic is declining. By leveraging AI technology and adding convenience features, Home Depot is positioning itself to better meet the evolving needs of its customers. The company hopes these initiatives will increase store visits and reinforce its market leadership. Industry experts suggest that such innovative approaches are essential for retailers to compete in a value-oriented consumer market where online shopping remains a significant challenge.