Industry Analysis & Industry Trends
The Hardware and Building Supplies Retailing industry has performed strongly over the past five years. Industry revenue fell in 2009-10 and 2010-11 due to subdued expenditure on private homes, but has since returned to growth in 2012-13 and 2013-14, boosted by positive consumer sentiment and greater expenditure on DIY renovations and home improvement projects. An undersupply of affordable housing and rising housing prices have also contributed to this growth, as it has become extremely expensive and time consuming for homeowners to upgrade to bigger and better homes. As a result, many homeowners have been deterred from moving, seeking instead to improve their existing homes through DIY renovations... 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