Industry Analysis & Industry Trends
Operators in the Hardware and Home Improvement industry sell DIY equipment, building materials, outdoor and garden equipment and other hardware products. The economic downturn sent the industry into disarray, the effects of which were felt throughout the five-year period. Sales of expensive items such as bathroom and kitchen fittings were particularly affected because consumers put major renovations on hold. This change in economic conditions and consumer behaviour dampened operators' performance at times. Over the five years through 2014-15, revenue is expected to increase at a compound annual rate of just 0.2% to £10.5 billion. This includes forecast current year growth of 5%.
Tough economic conditions led to mixed results for the industry over the past five years... purchase to read more
Industry Report - Industry Investment Chapter
The Hardware and Home Improvement Stores industry has a low level of capital intensity, which is characteristic of a retailing industry and reflects the labour-intensive nature. Labour costs are generally incurred through the need to hire knowledgeable and efficient staff members to serve customers. Customers typically require advice and tips on home improvement and the different types of tools and equipment needed. Employees are therefore required to have an adequate amount of knowledge of products and their uses. Employees are also required to stock shelves and perform administrative duties that arise in line with the running of the business. Wages in 2014-15 are estimated to account for 14.4% of revenue while depreciation is expected to account for 1.3% of revenue... purchase to read more