Shoring it up: Industry revenue is expected to return to growth following two years of decline

Operators in the Hardware and Home Improvement Stores industry sell DIY equipment, building materials, outdoor and garden equipment and other hardware products. The industry has recorded relatively healthy growth over the past five years, although recent performance has been less robust, including contraction over the two years through 2018-19. Improving economic conditions fuelled revenue growth in the beginning of the period. Rising disposable incomes and consumer confidence levels led to households loosening their budgets and undertaking renovation projects, prompting demand for industry products. Meanwhile, a resurgent housing market widened the market for operators. A...read more.

Industry Statistics & Market Size
Revenue
£13bn
Annual Growth 15-20
2.0%
Forecast Growth 20-25
Profit
Employment
97,070
Businesses
5,422

Industry Threats & Opportunities

  • The industry has grown overall, despite a fall in demand due to weak consumer confidence
  • Weakness in the residential market following the referendum led to a decline in industry revenue
  • The UK’s exit from the European Union could increase purchase costs, constraining margins
  • Industry Report - Industry Analysis Chapter

    The Hardware and Home Improvement Stores industry has recorded healthy revenue growth for the majority of the past five-year period. Over the first-half of the period, the industry benefited from a resurgent housing market, rising real disposable income and increased consumer confidence.However, this trend faltered following the EU referendum in 2016. The UK’s decision to withdraw from the European Union led to considerable economic uncertainty, negatively affecting consumer confidence. In turn, consumers are expected to have become more cautious of their spending habits, limiting and deferring expenditure, and also delaying household renovations. Consequently, this is expected to have dampened demand for industry products. Fur...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
  • Price competition
  • Residential demand
  • Employment and automation
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry Outlook continued
  • Leaving the European Union
  • Online growth
  • 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
    ProfitWagesPurchasesDepreciationMarketingRentOther
  • Chart: Cost Structure Benchmarking – Sector vs Hardware & Home Improvement Stores

  • Basis of Competition
  • Internal competition
  • External 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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