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 2008 housing market crash sent the industry into disarray because fewer houses were bought, sold and built. This was then aggravated by the sustained economic recession, which significantly affected disposable income and industry revenue. 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... purchase to read more
Industry Report - Starting a New Business Chapter
The Hardware and Home Improvement Stores industry has moderate barriers to entry. The major expense faced by new entrants is the cost of acquiring retail space with close proximity to consumers, and acquiring stock. The established players in the industry have access to economies of scale, meaning they are able to apply the discount available because of the amount of products they purchase. This is even more so for retailers that are part of a cooperative, as they benefit even more from the lower costs.
Retailers typically have an established and trusted relationship with suppliers; this makes the task of acquiring stock easier. Retailers are also likely to have established relationships with customers and it may prove hard for a new entrant to lure them away... purchase to read more