Global Hardware, Home Improvement & Furnishing Store Industry
The global home improvement store industry generated almost $600 billion in 2010, having recorded yearly growth of almost 2% for the four preceding years, according to research from MarketLine. The market represents a large share of the whole specialty store industry. Building materials represented the leading segment, generating almost $390 billion in 2010, accounting for 65% of the overall market in terms of value. Market growth is predicted to accelerate to a yearly rate of nearly 3% between 2010 and 2015 to bring the industry to close to $670 billion before the end of 2015. The global home improvement industry involves the ownership and running of home improvement retail outlets, and is made up of building materials and DIY products and equipment.
A thorough hardware store industry analysis shows that players in the sector are coming under increasing pressure from competition in the form of big box home improvement stores. Consumers are attracted to these stores for the time saving aspect of being able to make a wide variety of purchases all in one place. Hardware demand will rise as the economy recovers, leading to resumption of higher levels of activity in the housing industry. Rising consumer confidence will also see increased demand from homeowners to carry out repairs and general home improvement. Private consumers account around 90% of this industry; electrical, plumbing, hardware and paint-related tools are the main categories of goods sold.
The global home furnishing retail industry generated almost $527 billion in 2010, reports MarketLine. In the four-year period ending 2010, the market maintained a yearly rate of growth of almost 2%. Furniture sales represented the most profitable market segment, exceeding $324 billion in 2010, accounting for 62% of the overall market in terms of value. Market growth is expected to pick up, reaching a yearly rate of almost 4% between 2010 and 2015 to make the global home furnishing retail industry worth more than $627 by the close of 2015. The economic recession has led to lower levels of disposable income, rivalry from external competitors and a smaller number of homeowners. As the economy recovers, the rate of home ownership will start to pick up again, and rising consumer confidence will see consumers ready to splash out on furniture to improve their homes.
The majority of home furnishing retail store operators stock household furniture along with furniture for outdoors and offices. Furniture for the dining room, living room and bedroom make up most of the industry, with upholstered furniture representing the next-largest segment in terms of demand, followed by desks, home office goods, rugs, recliners, lamps and outdoor furniture.
Regional Market Share
The furniture and furnishings store market has suffered due to the economic crisis as homeowners delay furnishing and redecorating projects to cut back on unnecessary spending. Consumers began to spend more in 2011, though small and moderate purchases were more prevalent than big spends, reports Euromonitor International.
In the UK, the furniture and furnishings store industry has also been negatively affected by the economic climate. Habitat announced in 2011 that it would go into administration, selling three stores to Home Retail Group and likely laying off 750 employees, according to Euromonitor International.