Penny Central: The Home Depot $0.01 Hunting Guide

I. Introduction: What Are Penny Items?

At Home Depot, a "penny item" refers to merchandise that rings up at $0.01 due to internal inventory clearance systems - not public promotions.

These aren't sales. They're items that:

• Have been chosen for removal from inventory
• Are no longer intended for sale
• Still happen to be on shelves because of oversight or delays

This process is driven by Zero Margin Adjustment (ZMA) - a financial mechanism that reduces an item's value in the system to nearly zero. While these items are meant to be removed, some stay on the floor and can still be bought.

II. Understanding the Clearance Lifecycle

At Home Depot, clearance items follow a markdown sequence that may eventually lead to the $0.01 "penny" status. While unofficial, two distinct markdown patterns - or Clearance Cadences - have been consistently seen by shoppers.

Clearance Cadence A (Approx. 13 Weeks)

Clearance Cadence B (Approx. 7 Weeks)

Quick Reference: Price Ending Cheat Sheet

III. Pre-Hunt Intelligence: Using Digital Tools

Before heading into a store, use Home Depot's app or website to scout items that might have reached penny status. It won't show you the $0.01 price directly - but it can give you signals that an item has been marked internally.

Interpreting Online Status

Limitations to Keep in Mind

• Online data isn't real-time - there can be a delay of 1-2 days
• The penny price ($0.01) never shows online
• You still need in-store confirmation to be sure - this is just a filtering step

When to Go In-Store

Only go check in person if:

• You've found an item that shows no local stock but is still listed online
• You're tracking the item based on its clearance cycle and tag date
• You've seen reports in penny shopping communities about that item pennied out recently

IV. In-Store Penny Hunting Strategies

Once you're in the store, your goal is to find penny-priced items that haven't yet been pulled from the shelves. These are usually clearance items that slipped through the cracks.

Where to Look

What to Look For

Certain categories tend to hit penny status more often:

How to Check the Price (Discreetly)

Overhead Items: High-Risk, Mixed Results

V. The Checkout Challenge

You found a penny item. Now comes the tricky part: getting it through checkout without issues.

Optional Trick: Use a "Keeper Item"

Add a small, inexpensive item you plan to buy:

• Makes your transaction look more normal
• Distracts attention from a suspicious $0.01 item
• Useful when checking out with help or retrieving items from locked displays

Multiple Penny Items?

• You can buy multiple units of the same penny SKU in one transaction
• Don't scan different SKUs together unless you want extra attention
• When in doubt: one penny SKU per checkout

Locked Case or Cage Items

1. 1. Add a "keeper" item to your cart
2. 2. Ask a staff member to unlock the item
3. 3. Politely direct them toward self-checkout
4. 4. At SCO: Scan the keeper item first, then scan the suspected penny item. Staff may leave once the item is scanned.
5. 5. Pay and print your receipt as usual

If You're Stopped by an Employee

If They Demand the Item Back After Purchase

You can try:

• "I've completed the purchase and have my receipt. I'm not returning it."
• If pressed: "Can I speak with a manager for clarification on store policy?"

Some stores might honor it, others may confiscate it. Reactions vary.

VI. The Inside Scoop: Internal Operations

Understanding Home Depot's internal operations helps you grasp why penny items exist, why staff act the way they do, and how the system works behind the scenes.

Penny Items = Not Meant for Sale

Home Depot doesn't price things at $0.01 for customers - it's an internal accounting mechanism triggered by Zero Margin Adjustment (ZMA).

Why does it happen:

• Item is discontinued, damaged, expired, or no longer worth selling
• Store uses ZMA to reduce its system value to $0.01 (effectively zero)
• System flags it for removal from shelves - but sometimes it gets missed

Employee Policy: Strict Rules

• Employees are forbidden from buying penny items - doing so results in termination
• Many stores enforce a "24-hour rule": staff can't buy newly marked-down clearance until it's been on the floor for 24+ hours
• This prevents staff from hiding items for themselves

FIRST Phones & the Clearance App

Home Depot equips staff with handheld devices called FIRST phones. The Clearance App lets associates:

• See a list of clearance items, including penny-priced ones
• Filter by department, location, price, on-hand stock, and "no home" items
• Flag items for removal

This tool helps staff actively search for and remove penny items from the sales floor.

Why Management Cares So Much

Managers are pressured to remove penny items because they:

• Hurt shrink metrics (loss due to theft, damage, system errors)
• Signal poor inventory control
• Represent a financial loss (even at a penny, the system records a transaction)
• Disrupt inventory accuracy for automation and reorders

SOP Reality: Policy vs. Practice

Enforcement varies:

• Some managers will quietly honor the sale to avoid escalation
• Others will confiscate the item or cancel the transaction
• Some employees may even give it away as a "damaged out" freebie - rare, but it happens

Same store, different shifts = different outcomes.

VII. Research Deep Dive: Fact vs Fiction

Despite how widespread penny hunting has become, Home Depot has never publicly confirmed the full clearance-to-penny process. Most of what we know comes from community observations, shared screenshots and receipts, and logical deductions from how retail clearance cycles work.

What's Real vs. What's Rumor

How Dependable Is Community Intel?

Very - but with a few caveats:

• National penny items (brand-wide markdowns) are dependable across many stores
• Store-specific pennies (returns, damaged goods, unpulled clearance) are hit-or-miss
• Community screenshots and shared receipts are gold - but dates matter

Always check timestamps on community posts. A penny item from 4 weeks ago may already be pulled or long gone.

VIII. Responsible Penny Hunting

Penny hunting thrives on community, strategy, and discretion. Acting irresponsibly not only gets you shut down - it can cause stores to crack down harder on everyone.

IX. Conclusion: Tips for Success

Whether you're just starting out or you've been hunting for a while, here's what matters most: know the system, stay patient, play it smart, and stay respectful.