Hammered home: Small retailers struggle as Bunnings continues to dominate the industry

Increased residential building investment, rising 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 improving their existing homes through DIY renovations. This trend 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...read more.

Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 13-18
4.2%
Forecast Growth 18-23
Profit
Employment
67,933
Businesses
5,349
Market Share of Companies

Industry Threats & Opportunities

  • Households undertaking DIY home improvement renovations and repairs have benefited 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
  • Industry Report - Industry Analysis Chapter

    The Hardware and Building Supplies Retailing industry has undergone significant structural changes over the past five years as large national retail chains have attempted to capture more of the expanding DIY home improvement market. Woolworths entered the industry in 2011-12, spending billions on rolling out a network of big-box stores under the Masters brand to challenge Bunnings’ national retail dominance. In response, Bunnings continued to expand its existing network of warehouses, steadily lifting its market share.The industry’s performance depends on private capital expenditure trends for new and existing properties. The largest market for industry operators is DIY customers undertaking renovation, maintenance and building projects on existing homes. Alt...purchase to read more.

    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
  • Production 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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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Profitability
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability
  • Industry structure
  • Future trends
  • 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

  • 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
    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
    Wesfarmers Limited,
  • Table: Wesfarmers Limited - financial performance

  • 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
    Table: Industry Data for the Hardware and Building Supplies Retailing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hardware and Building Supplies Retailing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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