Industry Analysis & Industry Trends
Hardware and home improvement product sales have endured hard times in recent years, with the UK recession and a greater reliance on outsourced services taking its toll on the industry. Key factors affecting industry revenue have been the fall in activity in the construction industry and generally low consumer confidence. Over the five years through 2011-12, industry revenue is estimated to have declined by 4.1% per annum with the lowest point being in 2009-10 when revenue dipped under £10 billion. For 2011-12, industry revenue is expected to increase by 1.1% to £10.1 billion, driven by marginal improvements in retailing activity, accompanied by an ongoing flat construction sector... purchase to read more
Industry Report - Industry Investment Chapter
Like many retail industries, hardware and home improvement stores are generally labour intensive. Labour costs for the industry are incurred through the need to hire staff to serve store consumers. Labour costs or wages account for a significantly larger share of the daily running costs for operators compared with capital expenditure, making the industry labour intensive. Currently, the ratio of capital to wage costs is estimated at 1:3.4, which means that for every pound spent on capital expenditure will be an equivalent to just over £3.40 for labour.
In order to compete strongly in the industry, capital is required to purchase or lease prominent and spacious retail premises... purchase to read more