Home Depot Clearance Markdown Cycles Explained

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Understanding Home Depot’s Markdown System

Home Depot follows a predictable clearance markdown cycle that smart shoppers can use to maximize savings. Each stage is encoded in the cents ending of the clearance price tag.

The Four Stages

1st Markdown (Ends in .00, .50, or .98)

The initial clearance pricing. Products typically stay at this stage for about 3 weeks. Discounts are usually 10-25% off the original price.

2nd Markdown (Ends in .06 or .04)

A significant price reduction. The last digit indicates how many weeks remain at this price:

  • .06 = approximately 6 weeks
  • .04 = approximately 4 weeks

Discounts at this stage are typically 25-50% off.

Final Markdown (Ends in .03 or .02)

Last chance pricing before the product is removed. Again, the cents ending tells you the timeline:

  • .03 = approximately 3 weeks remaining
  • .02 = approximately 2 weeks remaining

Expect 75%+ off at this stage.

Penny Items (Ends in .01)

The ZMA (Zero Margin Adjustment) removal signal. Products at this stage may ring up for $0.01, but store policy on selling penny items varies. These are extremely rare to find on shelves.

When to Buy

The best strategy depends on your goals:

  • Resellers: Buy at 2nd markdown for the best volume/discount balance
  • Personal use: Wait for final markdown if you can risk the item selling out
  • Penny hunters: Check stores early in the morning after new markdowns are applied

Track with Endless

Use Endless to monitor clearance products across multiple Home Depot locations. Our markdown analytics dashboard shows you exactly which stage each product is at, helping you time your purchases perfectly.