Industry Analysis & Industry Trends
Increases 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 removal 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 - Industry Investment Chapter
The industry displays low capital intensity. The industry is typically labour-intensive, with employees required to undertake a variety of tasks such as assisting customers with their purchases, processing transactions, stocking shelves, displaying merchandise and tracking inventory. In 2016-17, the industry is estimated to allocate just $0.10 on capital expenditure for every dollar allocated in wage costs. This ratio is indicative of an industry with a low level of capital intensity.
Capital expenditure is required on fixtures and fittings such as display shelves, computer systems and cash registers. The industry uses point of sale (POS) systems that read product barcodes. This technology has simplified labour tasks and minimised human error... purchase to read more