Hard hitting: Declining property transactions constrain revenue growth in the current year

Operators in the Hardware and Home Improvement industry sell DIY equipment, building materials, outdoor and garden equipment and other hardware products. Over the past five years, the industry has recovered from the lingering effects of the economic downturn and recorded relatively strong growth. Conditions in the industry started to improve from 2013-14 onwards following the introduction of government policies to stimulate the housing market, while generally improving economic conditions also boosted demand. The Help to Buy scheme led to an increase in the number of residential property transactions in 2013-14 and boosted demand for industry products as consumers increased expenditure on their newly bought properties...read more.

Industry Statistics & Market Size
Revenue
£12bn
Annual Growth 13-18
4.1%
Forecast Growth 18-23
Profit
Employment
94,714
Businesses
5,072

Industry Threats & Opportunities

  • A decline in property transactions since the EU referendum constrains revenue growth
  • Intense price wars have negatively affected profit over the past five years
  • Large companies are expected to continue to invest in innovative services such as click-and-collect
  • Industry Report - Industry Key Buyers Chapter

    The Hardware and Home Improvement Stores industry has a medium level of market share concentration. The level of concentration measures the extent to which the top players dominate an industry. The four largest players in the industry are expected to control 63.1% of the total market in 2017-18. The industry comprises a variety of retailers ranging from small companies to larger multi-establishment retailers. Although the larger players dominate, the industry is fairly fragmented. The majority of these enterprises are small and family-owned, serving a local community with one or two establishments. According to the Office for National Statistics, 68.9% of enterprises employed fewer than five people in 2017 and 88.6% employed fewer than 10. The...purchase to read more.

    Additional Insights for the Hardware & Home Improvement Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hardware & Home Improvement Stores Industry are

  • Having a wide and expanding product range
  • Experienced work force
  • Availability of car parking
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Number of households in the Hardware & Home Improvement Stores industry impact industry performance..

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    What's in this report

    What is the Hardware & Home Improvement Stores Industry?

    Operators in this industry specialise in retailing a range of hardware and home improvement equipment to domestic and commercial customers. Products include do-it-yourself (DIY) equipment, building materials, paints, glass and other hardware products.

    Industry Products
  • DIY tools and hardware
  • Decor
  • Building materials and parts
  • Paint and wallcoverings
  • Garden and outdoor equipment
  • Heating and plumbing equipment
  • Industry Activities
  • Selling hardware products
  • Selling paints, varnishes and lacquers
  • Selling building materials, such as bricks and wood
  • Selling DIY material and equipment
  • Selling garden equipment
  • Selling decorative products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Number of households
  • Consumer confidence index
  • Household expenditure on maintenance and repair
  • Average weekly hours of work
  • Official bank rate

  • Current Performance
  • The EU referendum
  • Price competition
  • Housing market
  • Alternative avenues of growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Increased competition
  • Referendum concerns
  • Wagering on innovation
  • Rationalising platforms
  • Table: Hardware & Home Improvement Stores Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Residential Building Construction
  • Painting
  • Consumers

  • Key Selling Industries
  • Construction Supplies Wholesaling
  • Hardware, Plumbing & Heating Equipment Wholesaling
  • Machine Tool Wholesaling
  • Transportation and Storage

  • Products & Services
  • Building materials and parts
  • DIY tools and hardware
  • Garden and outdoor equipment
  • Heating and plumbing equipment
  • Decor
  • Paint and wallcoverings
  • Chart: Hardware & Home Improvement Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Do-it-yourself consumers
  • Tradesmen
  • Do-it-for-me consumers
  • Chart: Major Market Segmentation for the Hardware & Home Improvement Stores Industry

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

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hardware & Home Improvement Stores Industry

  • Industry Globalization
    Kingfisher plc, Travis Perkins plc, HHGL Ltd,
  • Table: Kingfisher plc - financial performance
  • Table: Travis Perkins plc - financial performance
  • Table: HHGL Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hardware & 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
    Table: Industry Data for the Hardware & Home Improvement Stores Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Do-It-For-Me (Difm)
  • The process of hiring a professional to undertake home improvements.
  • Do-It-Yourself (Diy)
  • The process of undertaking home improvements without the assistance of a professional.
  • Multichannel Retailing
  • Using different avenues to market a firm's product to the consumer. These can include the internet, social media, retail stores and email.
  • Wealth Effect
  • The wealth effect states that consumers tend to spend more when their wealth rises.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hardware & Home Improvement Stores market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Hardware & 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 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 Hardware & 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 Hardware & 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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