Home Depot has been battling weak consumer demand over the past few years amid nationwide concerns over inflation and housing affordability.

In Home Depot’s second-quarter earnings report for 2025, it revealed that its U.S. comparable sales increased by 1.4% year over year. However, data from Placer.ai flagged that customer visits at the retailer’s same-store locations dropped by 2.6% year over year during the quarter. 

During an earnings call in August, Home Depot executives warned investors that customers continue to delay funding larger discretionary home improvement projects, such as bathroom or kitchen remodels, due to concerns about the economy and high mortgage rates. Since 2022, the average 30-year mortgage rate in the U.S. has remained above 6%.

“Our customers still tell us that the rate environment is giving them pause on larger remodeling projects that would typically require debt financing,” said Home Depot Chief Financial Officer Richard McPhail during the call. 

Despite economic uncertainty, Home Depot and many other retailers nationwide are expecting a sales boost during the holidays this year. 

Home Depot suffered declining foot traffic in its stores during the third quarter of 2025.

Shuttershock

How U.S. consumers plan to shop during the 2025 holiday season: 

  • Each consumer is expected to spend an average of $890.49 this year on holiday gifts, decorations, food and other seasonal items.
  • Also, 85% of consumers anticipate encountering higher prices due to tariffs, and 54% plan to start holiday shopping early to spread out their budget.
  • Additionally, 63% of consumers plan to do most of their holiday shopping during Thanksgiving weekend, up from 59% in 2024.
    Source: National Retail Federation

“Despite consumers’ economic concerns, the winter holidays remain an important occasion to celebrate with loved ones,” said Prosper Executive Vice President of Strategy Phil Rist in a press release. “This is particularly true for those families with children who are expected to increase their gift budgets by more than $30 on average.”

Home Depot will soon face a major boycott

However, Home Depot’s sales growth may take a significant hit during the holiday season due to a nationwide boycott scheduled to take place from Nov. 27 to Dec. 1. 

The “We Ain’t Buying It” boycott, organized by grassroots organizations Black Voters Matter, Indivisible and Until Freedom, is pushing consumers across the country to “hit pause on shopping from major corporations,” according to the campaign’s website. 

The boycott specifically targets Amazon, Target, and Home Depot, accusing each company of “undermining democracy.”

Related: Home Depot raises alarm bells with unexpected closure, layoffs

The groups have specifically taken issue with Home Depot’s alleged cooperation with U.S. Immigration and Customs Enforcement in its immigration crackdown efforts. ICE raids have recently been spotted taking place in front of some of its store locations. 

“Home Depot is allowing ICE agents to illegally detain and kidnap laborers from their stores,” reads the campaign’s website. “The laborers in our communities are not able to look for work safely.”

Home Depot has previously denied working with ICE on deporting undocumented immigrants in a statement sent to NPR in August. 

“We ask associates to report any suspected immigration enforcement operations immediately and not to engage for their own safety … ” reads the statement. “We aren’t notified that immigration enforcement activities are going to happen, and we aren’t involved in them. In many cases, we don’t know that arrests have taken place until after they’re over. We’re required to follow all federal and local rules and regulations in every market where we operate.”

More Retail:

  • Marshalls makes bold change to return policy ahead of holidays
  • Walmart quietly shrinks generous offer for holiday shoppers
  • BJ’s Wholesale announces free offer for customers amid struggles

The “We Ain’t Buying It” boycott calls on consumers to shop at “small, local, or with businesses affirming our humanity” as they avoid Home Depot stores. 

“Thanksgiving retail week is a crucial period for big retailers; nearly 20% of annual sales happen between Black Friday and Cyber Monday,” reads the campaign’s website. “If we coordinate even a small drop in these numbers, we send a powerful message: we want to see them stand up and stop enabling harm for profit.”

The massive effort comes after Home Depot was boycotted by consumers during the whole month of July (organized by The People’s Union) due to its decision in March to quietly remove its diversity, equity and inclusion page from its website.

Home Depot isn’t the only company facing consumer outrage this year

More Americans have recently opted to boycott companies amid heightened political tensions. Target, Walmart, Lowe’s, and Amazon have also suffered consumer boycotts this year, which have posed a threat to their sales growth.

Where Americans stand on boycotting companies in 2025:

  • Roughly 45% of Americans said that before purchasing from a business, they sometimes research the company’s values or beliefs. 
  • Also, 31% of Americans have boycotted a business due to reasons such as the company’s endorsement of discrimination, its political donations, affiliations, religious messaging or practices. 
  • Additionally, 37% would more likely boycott a large corporation, while 7% would boycott a small business and 28% would boycott both. 
  • Approximately 45% of Americans are more likely to support a business that promotes DEI, while 21% say they’re less likely.
    Source: LendingTree

“Any company that attempts to downplay the importance of politics in their customers’ shopping choices does so at its own peril,” said Matt Schulz, LendingTree chief consumer finance analyst, in the survey. “Your potential customers are listening closely to what your business says, whether you like it or not.”

Schulz also said that companies should be willing to take public stances on issues, despite the risk of losing customers.

“Some issues are too important to remain quiet about,” he said. “However, a company would be doing itself a disservice if it didn’t at least look into the possible impact of such a stance on its overall bottom line. A bold stance will likely make many potential customers like a business less, but it’ll also likely make others like them more.”

Related: Marshalls makes bold change to return policy ahead of holidays