Poor construction activity has affected hardware and home improvement stores but conditions are improving
London, United Kingdom (PRWEB) August 05, 2012
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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