Hammer time: Continued competition from home improvement stores and online retailers will stagnate profitability

The Hardware Stores industry has grown steadily over the five years to 2018. As the housing market has strengthened and consumer confidence has revived, individuals have started home-improvement projects that they put on hold during the recession. Low mortgage rates during the period have also encouraged individuals to purchase and renovate new and existing homes. Over the five years to 2023, while industry revenue is expected to grow, profit will be depressed by external competition, particularly from home improvement stores. As a result, despite increasing consumer spending and strong economic growth, average industry profit is expected to remain stagnant...purchase to read more.

Industry Statistics & Market Size
Revenue
$27bn
Annual Growth 13-18
3.3%
Forecast Growth 18-23
Profit
Employment
154,900
Businesses
20,306

Industry Threats & Opportunities

  • External competition has slightly depressed profit growth, but revenue is expected to grow steadily
  • Hardware stores have diversified product offerings and developed market niches
  • Hardware stores will be pressured by online retailers and larger home improvement stores
  • Industry Report - Industry Locations Chapter

    As with most retail industries, the locations of hardware stores fall broadly in line with population trends in each US region and thus, consumer demand. This factor influences employment and wages in each region. A greater number of residents in a particular region will equate to stronger demand for goods retailed by the Hardware Stores industry.SoutheastIn 2018, IBISWorld estimates that the Southeast region accounts for the largest proportion of industry establishments at 24.1% and the largest share of the US population at just over 25.0%. A strong contributing factor is the number of residents living in Florida, which alone accounts for 5.0% of industry establishments and 6.4% of the US population...purchase to read more.

    Additional Insights for the Hardware Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hardware Stores Industry are

  • Ability to control stock on hand
  • Experienced work force
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Private spending on home improvements in the Hardware Stores industry impact industry performance..

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    What's in this report

    What is the Hardware Stores Industry?

    Companies in this industry primarily retail a broad range of new home-renovation equipment and supplies. Hardware, plumbing, electrical and paint-related tools are the most commonly stocked goods.

    Industry Products
  • Hardware
  • Power tools & equipment
  • Paint and sundries
  • Plumbing fixtures & supplies
  • Hand tools & accessories
  • Electrical supplies
  • Dimensional lumber
  • Industry Activities
  • Retailing hardware
  • Retailing tools and equipment
  • Retailing plumbing fixtures and fittings
  • Retailing electrical supplies
  • Retailing paint and supplies
  • Retailing garden products and equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Private spending on home improvements
  • year conventional mortgage rate
  • Homeownership rate

  • Current Performance
  • External threats
  • Product offerings and employment trends
  • Cooperatives
  • Chart: Revenue Growth

  • Industry Outlook
  • External competitive strengthens
  • Business strategies
  • Table: Hardware Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hardware Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Consumers

  • Key Selling Industries
  • Electrical Equipment Wholesaling
  • Hardware Manufacturing
  • Paint Wholesaling
  • Plumbing & Heating Supplies Wholesaling
  • Tool & Hardware Wholesaling

  • Products & Services
  • Hardware
  • Power tools & equipment
  • Dimensional lumber
  • Paint and sundries
  • Other
  • Plumbing fixtures & supplies
  • Hand tools & accessories
  • Electrical supplies
  • Chart: Hardware Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Contractors
  • Other
  • Chart: Major Market Segmentation for the Hardware Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Hardware Stores

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hardware Stores Industry

  • Industry Globalization
    Ace Hardware Corp., Do It Best Corp., True Value Company,
  • Table: Ace Hardware Corp. - financial performance
  • Table: Do It Best Corp. - financial performance
  • Table: True Value Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hardware Stores 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 Hardware Stores Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Big-Box Store
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, household goods and other consumer products.
  • Cooperative
  • A jointly owned, vertically integrated organization, also referred to as a co-op, that produces and distributes goods for the benefit of the owners.
  • Do-It-For-Me (Difm)
  • A category of customers who typically purchase materials themselves and hire third parties or professionals to complete the projects.
  • Do-It-Yourself (Diy)
  • A category of customers who complete tasks and projects on their own that would generally be outsourced to a business or service provider; for example, home renovations and wedding planning.
  • Electronic Data Interchange (Edi)
  • The transmission of electronic documents between businesses from one computer system to another.
  • Mom-And-Pop Store
  • A business that is owned and operated in a single location with few or no employees other than the owner or owners.
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hardware Stores 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 Hardware Stores:
    • 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 Hardware Stores 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 Hardware Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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