Home Centers & Hardware Stores Industry Profile

Companies in this industry sell building supplies, lumber, hardware, tools, and other home repair and improvement products. Major companies include Home Depot, Lowe's, Menards, and True Value (all based in the US), as well as Kingfisher (UK), Leroy Merlin (France), OBI (Germany), and RONA (Canada).

The global home improvement market is projected to surpass the trillion dollar mark by 2027 from more than $760 billion in 2020, with a compound annual growth rate (CAGR) of more than 4%, according to Statista. Surging focus of people on zero-waste DIY projects to create an eco-friendly home is likely to reveal rewarding opportunities for the market growth.

The US home centers and hardware stores industry includes about 21,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $195 billion.

Home centers and hardware stores sell many of the same products, but home centers typically offer more building supplies (such as lumber and flooring) and appliances than hardware stores.

COMPETITIVE LANDSCAPE

Home remodeling and repair and new homebuilding drive demand. The profitability of individual companies depends on low-cost purchasing, effective merchandising, and competitive pricing. Large companies can offer wide selections, supply high-volume goods to builders, and have advantages in purchasing, finance, distribution, and marketing. Small companies can compete by offering specialty products, providing superior service, or serving a local market. The home center segment of the industry is highly concentrated: the top ...