Home Centers & Hardware Stores
Companies in this industry sell building supplies, lumber, hardware, tools, and other home repair and improvement products. Major companies include Home Depot, Lowe's, and True Value (all based in the US), as well as Kingfisher (UK), Leroy Merlin (France), OBI (Germany), and Lowe's-owned RONA (Canada).
The global DIY/home improvement retail market, which includes home centers and hardware stores, generates about $580 billion in annual revenue, according to the European Federation of DIY Manufacturers. North America and Europe combined account for about 85% of the world market. Japan and Australia are other major DIY/home improvement markets. US giants Home Depot and Lowe's account for 25% of global market share.
The US home center and hardware store industry includes about 22,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $200 billion.
Home centers and hardware stores sell many of the same products, but home centers typically offer more building supplies (such as lumber and flooring) and appliances than hardware stores.
Home remodeling and repair and new homebuilding drive demand. The profitability of individual companies depends on low-cost purchasing, effective merchandising, and competitive pricing. Large companies can offer wide selections, supply high-volume goods to builders, and have advantages in purchasing, finance, distribution, and marketing. Small companies can compete by offering specialty products, providing superior service, or serving a local market. The home center segment of the industry is highly concentrated: the top two companies dominate. The hardware store segment of the industry is fragmented: the top 50 US companies account for about 35% of segment revenue.
Competition includes building supply wholesalers and distributors, lumberyards, mass merchandisers, warehouse clubs, and internet retailers.
Products, Operations & Technology
Major products for US home centers include lumber and building supplies (about 35% of sales); hardware, tools, and plumbing and electrical supplies (25%);
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms