Industry revenue is recovering as consumer activity strengthens.
London, United Kingdom (PRWEB) February 19, 2013
Operators in the Hardware & Home Improvement industry sell DIY equipment, building materials, outdoor and garden equipment, and other hardware products. According to IBISWorld industry analyst Temitope Onabanjo, “a lack of interest in DIY and a growing demand for contractors have placed enormous pressure on industry operators”. This has been aggravated by the sustained economic depression, which has significant reduced consumers' disposable income. Sales of big-ticket items, such as bathroom and kitchen fittings, have been hit the hardest, as consumers are putting major home renovations on hold. This has translated into declining sales for industry retailers. Over the five years through 2012-13, industry revenue is estimated to have decreased at a compound annual rate of 0.7% and now sits at £12.2 billion.
The 2008 housing market crash further added to the industry's woes, as fewer housing transactions and housing starts contributed to the weakening demand for industry products. Nevertheless, the industry was given a minor boost over the two years through 2010-11 by retailers introducing campaigns to encourage homeowners to redevelop their homes and take up DIY skills. Unfortunately, the boost proved temporary, as the UK economy went into a double-dip recession and consumers tightened their purse strings once more. Retailers have shifted their priorities to gardening and outdoor equipment in a bid to bolster sales, but the severe wet weather in spring 2012 and subdued consumer sentiment are likely to have put a spanner in the works. Industry revenue is estimated to decline by 1.1% in 2012-13.
Onabanjo adds, “over the next five years, rising consumer confidence and spending are expected to fuel growth in the industry”. Delayed renovation projects are likely to be restarted as consumers gain more trust in the economy. Construction activities have been affected by the recession but are expected to bounce back alongside the anticipated economic recovery. The ageing population is also expected to boost sales of outdoor and gardening equipment, which will benefit industry retailers. However, in the short term, sentiment and spending are likely to remain as subdued as the economic recovery. Industry revenue is forecast to return to growth over the five years through 2017-18.
The Hardware & Home Improvement Stores industry has a moderate level of market share concentration with the three largest players controlling an estimated 55.5% of the total market. Major companies include Kingfisher, Home Retail Group and Travis Perkins.
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
Operators in this industry specialise in retailing a range of hardware and home improvement equipment to domestic and commercial customers. Products include do-it-yourself (DIY) equipment, building materials, paints, glass and other hardware products.
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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