Hardware & Home Improvement Stores in the UK Industry Market Research Report now updated by IBISWorld

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Sales in the Hardware & Home Improvement Stores have endured hard times in the past five years, with the UK recession and a greater reliance on outsourced services taking a toll on the industry. Key factors affecting industry revenue have been the fall in activity in the construction industries and generally low consumer confidence. Over the five years through 2012-13, industry revenue is estimated to decline by 3.1% per annum. The lowest point came in 2009-10, after five consecutive years of decline. For 2012-13, industry revenue is forecast to increase by 0.1% to £10.4 billion, driven by marginal improvements in retailing activity and an ongoing flat construction sector. While the industry is expected to recover in the next five years, the number of industry players is expected to continue to shrink. In the next five years, profitability is expected to improve as the UK economy moves out of a second recessionary dip, with industry revenue forecast to grow over the five year period to 2017-18.For these reasons, industry research firm IBISWorld has updated its report on the Hardware & Home Improvement industry.

IBISWorld Market Research

IBISWorld Market Research

Poor construction activity has affected hardware and home improvement stores but conditions are improving

Sales at Hardware & Home Improvement Stores have endured hard times in the past five years, with the UK recession and a greater reliance on outsourced services taking a toll on the industry. According to IBISWorld industry analayst, “key factors affecting industry revenue have been the fall in activity in the construction industries and generally low consumer confidence”. Over the five years through 2012-13, industry revenue is estimated to decline by 3.1% per annum. The lowest point came in 2009-10, after five consecutive years of decline. For 2012-13, industry revenue is forecast to increase by 0.1% to £10.4 billion, driven by marginal improvements in retailing activity and an ongoing flat construction sector.

There is considerable concentration in the industry, with three major companies possessing nationwide retailing networks with over 100 stores, after major chain Focus DIY shut down in May 2011. Stephen adds, “these companies set the tone of the industry by stocking a large range of products at prices that exploit their economies of scale, while smaller niche operators fill geographic or product gaps”. While the industry is expected to recover in the next five years, the number of industry players is expected to continue to shrink. In the next five years, profitability is expected to improve as the UK economy moves out of a second recessionary dip, with industry revenue forecast to grow over the five year period to 2017-18.

The Hardware & Home Improvement Stores industry comprises a variety of retailers, ranging from small, family-run businesses at one location to multi-brand, multinational enterprises with sales of billions of pounds per year. The three largest operators in the industry account for over 65% of industry revenue, meaning that the level of market share concentration in the industry is considered to be medium. Major companies include Kingfisher (B&Q & Screwfix), Home Retail Group (Homebase) and Travis Perkins (Wickes).

For more information on the Hardware & Home Improvement Stores industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry primarily sells hardware, paint, glass and other home improvement products to domestic and commercial customers.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
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