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 Investment Chapter
In 2016, for every dollar spent by Home Improvement Stores operators on wages, $0.09 will be allocated toward depreciation costs. As such, the industry is labor intensive, and exhibits only a low degree of capital intensity.
Home improvement store operators must invest in fixtures and fittings, cash registers and point-of-sale (POS) systems. Over the past 10 to 15 years, the industry has undergone considerable change with the implementation of computer scanning technology, which has reduced inventory, minimized the level of human error in processing purchases, and simplified labor tasks, freeing up labor to do more value-added work. POS systems have enabled operators to computerize their inventory, resulting in better stock control and cost efficiencies... purchase to read more