Industry Analysis & Industry Trends
The Home Improvement Stores industry is a mature retail industry largely characterized by a high degree of market concentration and homogeneous product lines, leading to high levels of price competition, particularly between major companies Lowe's and Home Depot. In the five years to 2016, industry revenue is expected to rise, largely due to the industry's recovery from recessionary lows as well as the overall health of the economy. Rising confidence in the economy and higher incomes have encouraged households to make bigger purchases.The industry is well-positioned to experience even more robust growth during the next five years... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
In the 10 years to 2021 industry value added (IVA), which measures the Home Improvement Stores industry's contribution to the US economy, is expected to increase at an annualized rate of 4.6%. During the same period, US GDP is forecast to rise at an annualized rate of 2.1%. When industry growth falls roughly in line with GDP growth, IBISWorld considers the industry to be in a mature phase of its life cycle. Although IVA growth is expected to outpace GDP during the ten years to 2021, the IVA growth rate is largely based on the industry's slow recovery from the recession, when average profit was depressed, and companies limited their spending on wages and capital investments.
Saturation, which is a major indicator of a mature market, also limits more robust industry growth... purchase to read more