Overview

Under the hammer: The exit of Masters will create new opportunities for remaining players

The Hardware and Building Supplies Retailing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Market Share of Companies
Industry Statistics & Market Size
Revenue
$22bn
Annual Growth
2012 - 2017
6.8%
Annual Growth
2017 - 2022
Profit
Employment
69,612
Business
5,600

Industry Threats & Opportunities

  • Households undertaking DIY home improvement renovations and repairs have boosted the industry
  • Profitability has improved as retailers have reduced purchase expenses by bypassing wholesalers
  • Forecast slower growth in capital expenditure on private dwellings will constrain revenue

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    Industry Analysis & Industry Trends

    Increased residential building investment, rising household discretionary income, and growth in the number of households have supported the performance of 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, and this equity can be put towards home improvement projects...

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    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. Com..

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    Additional Insights for the Hardware and Building Supplies Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hardware and Building Supplies Retailing Industry are

  • Economies of scale
  • Ability to control stock on hand
  • Sale of goods currently favoured by the market
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on private dwellings and Consumer sentiment index in the Hardware and Building Supplies Retailing industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Hardware and Building Supplies Retailing Industry?

    Industry operators retail hardware and building supplies to households and tradespeople. These retailers stock a range of goods including hardware, timber, tools, paint, plumbing supplies and garden tools. The industry excludes companies that primarily retail garden supplies such as plants, seeds and soil.

    Industry Products
    Tools and equipment
    Timber
    Building supplies
    Gardening tools
    Paint and paint supplies
    Plumbing supplies
    Other hardware products
    Industry Activities
    Hardware retailing
    Tool and equipment retailing
    Plumbing fixture and fitting retailing
    Paint retailing
    Garden tool retailing
    Timber retailing
    Cement retailing
    Wallpaper retailing
    Carpenter and woodworker tool retailing
    Ceramic floor tile retailing

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Capital expenditure on private dwellings
  • Consumer sentiment index
  • Demand from house construction
  • Number of households
  • Real household discretionary income

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability
  • Industry structure
  • Industry Outlook
  • Table: Hardware and Building Supplies Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hardware and Building Supplies Retailing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • House Construction
  • Commercial and Industrial Building Construction
  • Consumers

  • Key Selling Industries
  • Hardware Wholesaling
  • Machine Tool and Parts Manufacturing
  • Nut, Bolt, Screw and Rivet Manufacturing
  • Tool and Hardware Manufacturing

  • Products & Services
  • Tools and equipment
  • Timber
  • Building supplies
  • Gardening tools
  • Paint and paint supplies
  • Plumbing supplies
  • Other hardware products
  • Chart: Hardware and Building Supplies Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • DIY consumers aged 35 to 54
  • DIY consumers aged 55 and over
  • Tradespeople
  • DIY consumers aged 15 to 34
  • Chart: Major Market Segmentation for the Hardware and Building Supplies Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Hardware and Building Supplies Retailing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hardware and Building Supplies Retailing Industry

  • Industry Globalization
    Major Companies
    Wesfarmers Limited
  • Table: Wesfarmers Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Hardware and Building Supplies Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Hardware and Building Supplies Retailing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Big-Box Stores
  • Warehouse-style retail outlets that are differentiated by their sheer size. This is a popular retailing concept and has been adopted by Bunnings.
  • Diy
  • Do-it-yourself renovations and repair work undertaken by unskilled consumers rather than skilled tradespeople.
  • Point Of Sale (Pos)
  • Technology that incorporates a cash register with a credit and debit card electronic payment system in the one device.
  • Wholesale Bypass
  • Wholesale bypass occurs when retailers source products directly from manufacturers or importers.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hardware and Building Supplies Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hardware and Building Supplies Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hardware and Building Supplies Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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