Industry Analysis & Industry Trends
Hardware retailers have experienced ups and downs during the last decade. During the early 2000s there was steady growth in industry revenue as demand for home renovation boomed. This was followed by a period of contraction in the mid- to late 2000s as the financial crisis and ensuing downturn led households to postpone home renovations and alterations. Since 2010-11, the industry has returned to moderate growth despite falling consumer confidence and constrained consumer spending as some demand for renovations returned. Intensifying competition and weak house prices weigh on demand for hardware. The Hardware Retailing industry is expected to grow by 3.0% in 2012-13 and at a compound annual rate of 0.9% over the five years through 2012-13 to $23.8 billion... purchase to read more
Industry Report - Starting a New Business Chapter
This industry has a medium level of concentration with the top major companies accounting for about 62.9% of industry revenue. With a lack of product differentiation, profits have been driven by larger stores, bigger product lines and better buying power. Companies that achieve economies of scale gain greater purchase savings, which correlate with lower prices at the retail level. This has been evident during the last five years, with market share gains being made by warehouse type stores at the expense of smaller hardware stores.
This industry has a low level of capital intensity. Prospective industry operators need to consider the initial capital requirements of establishing a new store or the cost of purchasing a franchise licence... purchase to read more