Industry Analysis & Industry Trends
Buoyant trends in residential building investment, 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 has also boosted the industry's performance. An undersupply of affordable housing and rising housing prices have contributed to growth as many homeowners have been deterred from moving. Instead, they have improved their existing homes through DIY renovations. In addition, the abolition of mortgage exit fees has made it easier for homeowners to refinance and unlock equity in their homes, which can be put towards home improvement projects.
Industry revenue is projected to grow at an annualised 6.7%... 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