Home Improvement Stores in the US - Industry Market Research Report

Home Improvement Stores in the US - Industry Market Research Report

Home Improvement Stores in the US

Home improvement stores are a very mature industry that is dominated by two major companies, Home Depot and Lowes. Both companies share similar product lines and high levels of price competition. Home improvement stores serve various markets, including do-it-for-me (DIFM), do-it-yourself (DIY), and professional. Most demand for products offered by home improvement stores is derived from activity in the residential market. The residential market boomed in 2020 as consumers headed inside to ward off COVID-19. This resulted in more consumers looking to improve the lockdown experience by investing in their homes. Thus, demand for home appliances, lumber, tools, hardware and lawn equipment grew. Demand for home improvements continued even as COVID-19 restrictions diminished in 2021. However, mounting inflationary pressure in 2022 led the federal reserve to increase interest rates. Since home improvement stores are so tied to residential sector growth, rising interest rates crushed demand for housing that year, leading to faltering revenue. Inflationary issues are expected to remain through 2023; despite this, home improvement store revenue is expected to grow at a CAGR of 3.6% to $255.4 billion, with a 2.0% decrease in 2023 alone, when profit margins are estimated to climb to 13.5%.

Stores in this industry sell a range of home repair and maintenance goods, such as hardware, tools, electrical goods, lumber and structural material for construction and renovations. Hardware stores, which are generally smaller and consequently sell fewer items, are excluded from this industry. Home improvement companies purchase goods from manufacturers and wholesalers and sell them to end users, such as do-it-yourself consumers and professional contractors.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.