Industry Analysis & Industry Trends
An overall increase in residential building investment and household discretionary income, and growth in the number of households have supported the Hardware and Building Supplies Retailing industry over the past five years. Households undertaking DIY home improvement renovations and repairs have also boosted the industry's performance. An undersupply of affordable housing and rising house prices have deterred many home owners from moving, instead choosing to improve their existing homes through DIY renovations. This has contributed to industry revenue growth over the past five years. In addition, the abolition of mortgage exit fees has made it easier for home owners to refinance and unlock equity in their homes, which can be put towards home improvement projects... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has moderate barriers to entry and this trend has increased over the past five years due to Bunnings' continued dominance and the rapid expansion of Masters. Initial capital investment requirements are fairly low for new firms. However, prospective companies need to consider the initial capital requirements of establishing a new store or the cost of purchasing a franchise licence. Hardware retailers may be hindered in their ability to find suitably sized premises in well-populated areas. The various franchise costs associated with some hardware retailers and the cost of purchasing a warehouse-type store can also be prohibitive for prospective firms.
New entrants may also find it extremely difficult to compete with the existing players in the industry... purchase to read more