Hardware Stores in Canada Industry Market Research Report Now Available from IBISWorld

The industry will experience growth during the five years to 2019, as a result of a growing construction industry and rising consumer incomes. For these reasons, industry research firm IBISWorld has added a report on the Hardware Stores industry to its growing industry report collection.

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The industry will become less volatile as construction markets recover, raising demand.

New York, NY (PRWEB) June 06, 2014

The Hardware Stores industry is characterized chiefly by its homogeneous product lines, which leads to a high level of price-based competition among the many small players in the industry. The industry is heavily fragmented, with small retailers that do not have the economies of scale to accumulate and maintain high market shares. Most industry demand is derived from consumers working on do-it-yourself (DIY) projects, with the remaining demand derived from do-it-for-me (DIFM) projects and professional contractors. “In the five years to 2014, many firms in this industry expanded their offerings to include complementary products, such as lawn, garden and farm supplies,” according to IBISWorld Industry Analyst Omar Khedr. These product offerings provided a cushion for industry revenue due to dwindling demand from consumers and the Canadian residential sector.

Following a sharp revenue dip in 2009, the industry has been struggling to recover, despite rising consumer incomes and a property bubble from 2010 until 2013. “Industry revenue has stumbled due to consumers moving away from hardware stores toward larger big-box retailers and home improvement stores,” says Khedr. However, industry revenue rebounded in 2013 due to a 2.5% increase in residential renovation expenditure. As residential renovation expenditures continue to accelerate, demand for hardware products will increase in 2014, leading to an expected 3.0% increase in industry revenue during the year. In the five years to 2014, industry revenue is expected to increase at an annualized rate of 1.7% to $3.6 billion.

The industry will experience growth during the five years to 2019, as a result of a growing construction industry and rising consumer incomes. In addition, the aging of the baby boomer generation is expected to increase demand for complementary services as they increasingly switch from the DIY market to the DIFM market. In the five years to 2019, the industry's fragmented concentration is not expected to change. In fact, IBISWorld expects that the number of industry enterprises will increase during this period as industry revenue expands. However, firms in this industry will still face significant external competition from related industries, especially the home improvement industry.

For more information, visit IBISWorld’s Hardware Stores in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry primarily retails a broad range of new-home renovation equipment and supplies. Hardware, plumbing, electrical and paint-related tools are the most commonly stocked goods. Consumers purchase about 90.0% of the goods supplied by this industry for private use, while contractors purchase a small share of goods.

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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 and Canadian 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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