Ice,
A small company working with a large retailer, is like trying to match oil with water.
The bigger companies can fight off the discounted price pressure from the Home Depot's and Wal-Mart's of the world, but the smaller companies get killed on those deals. I can give you very specific, real life examples.
SQUM working with a Home Depot might be nice to post on a stock message board, but I'm confident that this relationship will be a monetary loss for SQUM.
As for royalties, I have direct experience with this too. The terms typically do not include payment until 90-180 days AFTER the customer return policy has expired.
Smoke and mirrors, but like I said fun for you throw big names around on a message board.
Think
Logically