Renovation: Increasing consumer investment in remodeling will boost industry revenue

IBISWorld’s industry research report on Home Improvement Stores can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.


Industry Threats & Opportunities

  • Rising incomes will cause consumers to invest more in home improvements
  • Operators will look to more technologically advanced products to boost profit margins
  • Competition will be intensified by new operators taking advantage of the expanding market

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    Industry Analysis & Industry Trends

    Overe the five years to 2017, industry revenue is expected to rise. This growth is 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, and housing starts are expected to increase. With higher disposable income and increasing housing units, consumers and professionals have undertaken more home improvement projects boosting industry revenue growth. As the US economy continues to strengthen, the Home Improvement Stores industry is well positioned to experience continued growth over the next five years. The number of housing starts is expected to increase, further boosting demand for home improvement supplies...

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    Industry Report - Industry Locations Chapter

    As with most retail industries, the location of home improvement stores is driven primary by consumer demand and, as a result, will fall mostly in line with population trends across the country. Store locations will in turn influence the employment level and wage bill for each region. A greater number of residents in a particular region will generally equate to stronger demand for goods retailed by the Home Improvement Stores industry. In 2017, the Southeast region will account for the largest proportion of industry establishments (30.4%), and the largest share in the US population (25.5%).

    The high population in the Southeast is strongly impacted by the number of residents living in Florida, which alone accounts for 5.7% of the national population. In ..

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    Additional Insights for the Home Improvement Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Home Improvement Stores 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 Per capita disposable income and Private spending on home improvements in the Home Improvement Stores industry impact industry performance..

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    Industry Products

    What is the Home Improvement Stores 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
    Hardware, tools and plumbing & electrical supplies
    Lawn, garden and farm equipment supplies
    Household appliances, kitchen goods and housewares
    Industry Activities
    Retailing plumbing goods
    Retailing electrical goods
    Retailing tools
    Retailing housewares
    Retailing hardware
    Retailing lawn and garden supplies
    Retailing kitchenware

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Private spending on home improvements
  • Housing starts
  • Number of households

  • Current Performance
  • Product offerings shape industry trends
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Competitive environment
  • Technology
  • Table: Home Improvement Stores Industry Revenue Outlook

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

  • Products & Markets
    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 & electrical supplies
  • Lawn, garden and farm equipment supplies
  • Chart: Home Improvement Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Professionals (commercial projects)
  • Professionals (do-it-for-me consumer projects)
  • Do-it-yourself customers
  • Chart: Major Market Segmentation for the Home Improvement Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Home Improvement Stores

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Home Improvement Stores Industry

  • Industry Globalization
    Major Companies
    The Home Depot Inc. Lowe's Companies Inc.Menards Inc.
  • Table: The Home Depot Inc. - financial performance
  • Table: Lowe's Companies Inc. - financial performance
  • Table: Menards Inc. - financial performance

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

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Home Improvement Stores Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Private spending on home improvements (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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.
  • Why buy this report?

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

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