Strong foundation: Aging of the baby boomer generation is expected to increase demand for industry services

The Hardware Stores industry in Canada retails a variety of building and home renovation supplies to professional contractors and consumers. The industry is characterized by its homogeneous products, which lead to a high level of price-based competition among the many small players in the industry. Over the five years to 2018, a strong performance in construction markets and an outbreak of private spending on home improvements have resulted in a lucrative market for industry operators despite the rising external competition. Most industry demand derives from consumers working on do-it-yourself (DIY) projects, with the remaining demand coming from do-it-for-me (DIFM) projects and professional more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Industry revenue has slowed due to consumers moving away from hardware stores toward big-box retailers
  • Home improvement stores have lured customers away from hardware stores by offering lower prices
  • Online shopping will also grow as a threat to the industry over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Hardware Stores industry in Canada has a medium level of concentration, with the top three industry players expected to account for 37.7% of market share in 2018. Other than a few major players, the industry is dominated by numerous small-scale establishments with few employees that service narrow geographic markets. According to Statistics Canada, 83.1% of employer enterprises have less than 20 employees. Only 0.3% of industry companies employ more than 100 people. Within the industry, most players focus on operating in one or two regions, and therefore, struggle to build significant market share.In 2018, the largest industry operator, and the only one with over 5.0% market share, is estimated to be Home Hardware Stores, accounting for 35.8% of industry revenue. Hom...purchase to read more.

    Additional Insights for the Hardware Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hardware Stores Industry are

  • Having a loyal customer base
  • Proximity to key markets
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Residential renovation expenditure in the Hardware Stores industry impact industry performance..

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    What's in this report

    What is the Hardware Stores Industry?

    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 for commercial use.

    Industry Products
  • Hardware, tools, plumbing and electrical supplies
  • Lawn, garden and farm supplies
  • Paint and sundries
  • Lumber and other building materials
  • Industry Activities
  • Retailing hardware
  • Retailing tools and equipment
  • Retailing plumbing fixtures and fittings
  • Retailing electrical supplies
  • Retailing paint and supplies
  • Retailing garden products and equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Residential renovation expenditure
  • Homeownership rate
  • Consumer Confidence Index
  • Overnight rate

  • Current Performance
  • Downstream markets
  • Intense external competition
  • Embarking on alternatives
  • Chart: Revenue Growth

  • Industry Outlook
  • Strong external competition
  • Industry structure shifts
  • Table: Hardware Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hardware Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Landscaping Services in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Electrical Equipment Wholesaling in Canada
  • Farm, Lawn & Garden Equipment Wholesaling in Canada
  • Hardware Manufacturing in Canada

  • Products & Services
  • Hardware, tools, plumbing and electrical supplies
  • Other
  • Lumber and other building materials
  • Lawn, garden and farm supplies
  • Paint and sundries
  • Chart: Hardware Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Do-it-yourself consumers
  • Contractors
  • Other
  • Do-it-for-me consumers
  • Chart: Major Market Segmentation for the Hardware Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther Costs
  • Chart: Cost Structure Benchmarking – Sector vs Hardware Stores

  • Basis of Competition
    Internal CompetitionExternal Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hardware Stores Industry

  • Industry Globalization
    Home Hardware Stores Limited,
  • Table: Home Hardware Stores Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hardware Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hardware Stores Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Residential renovation expenditure (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big-Box Store
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, households goods and other consumer products.
  • Do-It-For-Me (Difm)
  • A category of customers who typically purchase materials themselves and hire third parties or professionals to complete the projects.
  • Do-It-Yourself (Diy)
  • A category of customers who complete tasks and projects on their own that would generally be outsourced to a business or service provider, for example, home renovations and wedding planning.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hardware Stores market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hardware Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hardware Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hardware Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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