| Hoovers Industry Overview - Home Centers and Hardware Stores |
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Hoovers Industry Overview - Home Centers and Hardware Stores http://www.hoovers.com/home-centers-and-hardware-stores/--ID__336--/free-ind-fr-profile-basic.xhtml ------------------------------------------------------------- Excerpt: According to the National Retail Hardware Association (NRHA), industry revenues were $36.8 billion in 2006. The NRHA projected that the industry would reach $44.6 billion in sales by 2010, a 5.9 percent growth.
Hardware remained a healthy, growing business in the early part of the new millennium, although by the mid-2000s a slowdown in housing starts began to affect the industry. There were approximately 20,100 hardware stores in the United States in 2006, which was down slightly from 20,200 in 2005, a decline that is expected to continue through 2010. This could be attributed to the growth of home improvement chains, including Home Depot, replacing some of the independently owned, "mom and pop" hardware stores that were typical in the past. There also were roughly 10,000 home centers in 2006, which combine goods related to hardware retailing with goods related to building materials retailing. Most of the U.S. retail hardware stores are independent businesses. However, nearly all of them are affiliated with a nationwide wholesaler that offers private label brands, retail store advertising, and identification programs. Such affiliations create the appearance of a structured industry. Most retail hardware stores have about 8,500 square feet of selling space. The National Retail Hardware Association (NRHA) categorizes larger formats as home centers. Home centers average more than 14,000 square feet of selling space and usually combine lumber with a greater selection of hardware products to create a one-stop shopping environment for home repair and home improvement projects. Home centers typically buy directly from the manufacturers and often sell to commercial accounts, as well as individual consumers.
Although many sectors of the economy suffered, hardware managed to thrive in the early 2000s due to a number of factors. The increasing trend toward do-it-yourself (DIY) projects was one of the chief reasons hardware stores were continuing to be successful. People purchased tools and other hardware and household items at a record pace. As the economy stabilized and climbed upward in the mid-2000s, hardware stores kept their foothold. For example, by 2004, hardware stores had regained their market share for the sale of hand tools. However, the housing market began a slowdown in 2005, and by mid-2007 retailers felt the same pinch that many homeowners did due to rising interest rates and a sluggish economy.
Source: "Hardware Stores." Encyclopedia of American Industries. Gale, 2008. Business & Company Information Center. Gale Cengage Learning. University of Texas At San Antonio, John Peace Library. San Antonio, TX. 12 May 2009. ------------------------------------------------------------- <<FindingOpportunity in Tough Times.pdf>> Lee, Bill. “Finding Opportunity in Tough Times: Independents are Positioned for Success.” Hardware Retailing. Nov 2008. Business & Company Information Center. Gale Cengage Learning. University of Texas At San Antonio, John Peace Library. San Antonio, TX. 12 May 2009. ------------------------------------------------------------- Excerpt: ACE HARDWARE USES INTERNET SALES TO RIDE OUT THE RECESSION Ace Hardware’s investment in Web retailing paid off in 2008, with Internet sales providing the only revenue gains for the year. The company saw a 37.2 percent increase in Web sales, which totaled $11.8 million for the year, an increase from $8.6 million in 2007. Source: http://www.nrha.org/User/News/news-3.aspx ------------------------------------------------------------- Excerpt: As consumers switch from replacing big-ticket items to repairing them, Avon Hardware's handyman service is booming. The store plans to add another handyman soon, a reflection of the mixed economic blessings of the recession and the role that hardware stores play as economic indicators. "There's still a lot of money in the Farmington Valley, but the people who a year ago were doing major remodels or upgrading to a bigger house are now just fixing their screens or replacing their decks," Riley said last week. "These are people — doctors, lawyers, business types — who can easily afford to hire contractors, but they're not doing the big jobs anymore." Most of the Farmington Valley's six hardware stores report that while their sales this year to contractors are off by as much as 20 percent, their DIY (Do-It-Yourself) business is flourishing as consumers flock to less-expensive solutions or do the work themselves. Source: http://www.courant.com/community/news/fv/hc-hardwarevalley0420.artapr25,0,3463390.story ------------------------------------------------------------- Excerpt: With two parts hardlines and one part gourmet housewares niche, an added dollop of creative promotion and a sprinkling of special events, the employees at This Is The Ace Hardware in North Salt Lake, Utah, cooked up a recipe for retail success. Anecdotal evidence shows that in a slow economy, customers may be more attracted to practical items that justify spending. Lacey Lee, housewares manager and cooking class coordinator at This Is The Ace Hardware, made sure to capitalize on this trend by promoting the store's upscale 1,800-square-foot housewares department and opening the store's full kitchen to the public. Source: http://findarticles.com/p/articles/mi_hb4728/is_4_196/ai_n31507466/?tag=content;col1 ------------------------------------------------------------- Excerpt: It's never easy convincing a successful home improvement retailer to adopt a new store concept, especially when things are going pretty well or in an .uncertain economy. However, savvy retailers know that to keep the business fresh and inviting to customers, they need to continue to invest in the business to make sure they stay up to date with the latest retailing concepts, merchandising trends and decor strategies. Source: http://findarticles.com/p/articles/mi_hb4728/is_4_196/ai_n31586828/?tag=content;col1 |
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