Paint Stores in the US Industry Market Research Report from IBISWorld has Been Updated

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Over the next five years, the industry will face competition from home improvement stores, which offer convenience, lower prices and one-stop shopping to consumers; nevertheless, the recovering housing market and revived remodeling sentiment will benefit revenue. For these reasons, industry research firm IBISWorld has updated a report on the Paint Stores industry in its growing industry report collection.

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Competition will inhibit growth, but the housing market's revival will modestly boost sales

Sales have been slowing for operators in the Paint Stores industry during the five years to 2013. Professional contractors and homeowners typically purchase industry goods during new residential construction and home renovation projects. Therefore, significant declines in new home construction and remodeling following the housing market's collapse caused demand to plummet in 2008 and 2009, dragging down revenue 0.2% on average annually since 2008. However, since 2010, demand conditions have slowly improved. “Housing starts began to increase considerably in 2012, and will continue to grow strongly over much of the next five years,” says IBISWorld industry analyst Natalie Everett. “Also, remodeling sentiment is stabilizing, according to the National Association of Home Builders.” As such, IBISWorld expects that revenue will increase 6.0% over 2013 to total $9.4 billion, after growing 4.9% in 2012.

During the past five years, competition from home improvement stores like Home Depot and Lowe's has further held back growth in the Paint Stores industry. By leveraging their size, these national retailers can achieve significant cost savings on comparable products and pass them down to consumers in the form of lower prices; as such, they are increasingly attracting customers away from paint stores. This competition was most pronounced during the past five years as the number of do-it-yourself (DIY) consumers increased. “DIY consumers are more likely to shop at this industry's competition than to stay loyal to paint stores,” adds Everett. “To remain competitive, operators reduced their price markups and the industry's average profitability declined.” As a result, some underperforming firms exited the industry. The number of enterprises is expected to decline at an average annual rate of 0.3% during the period, from 4,218 in 2008 to 4,154 in 2013. The industry has a medium level of concentration; dominating the industry is major player Sherwin-Williams. While the industry is fairly concentrated at the top, a large number of small and privately owned players make up the remainder.

IBISWorld forecasts steady growth for the industry in the five years to 2018. While competition from home improvement stores will likely persist, the upturn of the housing market will boost sales, benefiting the industry. Further, as disposable income and consumer sentiment continue to increase, DIY consumers will turn their projects over to professional contractors again. These contractors tend to shop at this industry's stores rather than its home-improvement store competition. Consequently, revenue is projected to increase over the period. For more information, visit IBISWorld’s Paint Stores in the US industry report page.

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IBISWorld industry Report Key Topics

This industry retails paint, wallpaper and other wall-related supplies. Products include stain, varnish, painting equipment and accessories that are used for interior and exterior surfaces. Firms purchase wall coverings from domestic and international manufacturers and wholesalers and then they retail them to the general public and contractors. This industry does not include home improvement stores, hardware stores and lumber and other building material dealers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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 Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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