Renovation nation: The DIY market has grown as customers have pursued their own remodeling projects

Over the five years to 2017, the Home Improvement Stores industry in California has experienced strong growth. From 2008 to 2012, many home improvement stores experienced falling revenue due to the collapse of the housing market and subsequent recession. Fortunately for industry operators, market conditions have rebounded with growth in the number of housing starts in California, per capita disposable income in California and pirate spending on home improvement. Competition has been increasingly prevalent in the industry due to the increased penetration of specialty retail stores. Over the next five years, market conditions are forecast to remain favorable, enabling industry revenue to grow...purchase to read more.

Industry Statistics & Market Size
Revenue
$18bn
Annual Growth 12-17
6.9%
Forecast Growth 17-22
Profit
Employment
57,037
Businesses
899

Industry Threats & Opportunities

  • Competition has been increasingly prevalent in the industry due to the increased penetration of specialty retail stores
  • Industry operators offer very similar product lines
  • Rising per capita disposable income in California is projected to be the main driver of growth
  • Industry Report - Starting a New Business Chapter

    Barriers to entry into the Home Improvement Stores industry in California are considered to be high. Since many industry operators require large retail spaces for the variety of products offered, vendors must invest a large amount of initial capital to rent or own a retail location. As a result, many larger companies typically open their stores just outside of highly populated areas, where property is less expensive. Furthermore, the market is fairly saturated and dominated by Home Depot and Lowe's. Competing with two well-established, dominant operators presents large obstacles to profitability. Barriers to entry into this industry are forecast to remain high as current market conditions are projected to remain steady thereby limiting potential new entrants...purchase to read more.

    Additional Insights for the Home Improvement Stores in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Home Improvement Stores in California Industry are

  • Having a loyal customer base
  • Having a wide and expanding product range
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Housing Starts in California and Per Capita Disposable Income in California in the Home Improvement Stores in California industry impact industry performance..

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    What's in this report

    What is the Home Improvement Stores in California Industry?

    Stores in this industry sell a range of home repair and maintenance goods, such as hardware, tools, electrical goods, lumber and structural material for construction and renovations. Hardware stores, which are generally smaller and consequently sell fewer items, are excluded from this industry. Home improvement companies purchase goods from manufacturers and wholesalers, and sell them to end users, such as do-it-yourself consumers and professional contractors.

    Industry Products
  • Lumber and other building and structural materials
  • Household appliances, kitchen goods and housewares
  • Hardware, tools and plumbing and electrical supplies
  • Lawn, garden and farm equipment
  • Industry Activities
  • Retailing plumbing goods
  • Retailing electrical goods
  • Retailing tools
  • Retailing housewares
  • Retailing hardware
  • Retailing lawn and garden supplies
  • Retailing kitchenware
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing Starts in California
  • Per Capita Disposable Income in California
  • Private spending on home improvements
  • Number of households

  • Current Performance
  • Beneficial market conditions
  • Consumer-focused
  • Chart: Revenue Growth

  • Industry Outlook
  • Market competition
  • Expanding technology
  • Table: Home Improvement Stores in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Home Improvement Stores in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Carpenters
  • Consumers

  • Key Selling Industries
  • Electrical Equipment Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Home Furnishing Wholesaling
  • Lumber Wholesaling
  • Paint Wholesaling
  • Plumbing & Heating Supplies Wholesaling
  • Tool & Hardware Wholesaling

  • Products & Services
  • Lumber and other building and structural materials
  • Household appliances, kitchen goods and housewares
  • Hardware, tools and plumbing and electrical supplies
  • Lawn, garden and farm equipment
  • Chart: Home Improvement Stores in California Industry Products and Services Segmentation

  • Major Markets
  • Professionals (commercial projects)
  • Professionals (do-it-for-me consumer projects)
  • DIY customers
  • Chart: Major Market Segmentation for the Home Improvement Stores in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Home Improvement Stores in California

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Home Improvement Stores in California Industry

  • The Home Depot Inc., Lowe's Companies Inc., Do-It Center, HD Supply Holdings Inc.,
  • Table: The Home Depot Inc. - financial performance
  • Table: Lowe's Companies Inc. - financial performance
  • Table: Do-It Center - financial performance
  • Table: HD Supply Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Home Improvement Stores in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Home Improvement Stores in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing starts in california (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Do-It-For-Me (Difm)
  • A category of customers who purchase materials themselves and hire third parties or professionals to complete the projects.
  • Do-It-Yourself (Diy)
  • A category of customers that includes homeowners who purchase products and complete their own projects.
  • Point-Of-Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • Professional Customers
  • Professional remodelers, general contractors, repairmen and tradesmen.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Home Improvement Stores in California Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Home Improvement Stores in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Home Improvement Stores in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Home Improvement Stores in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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