Industry Analysis & Industry Trends
Over the five years to 2016, volatile construction markets and external competition have become more prominent, posing a threat to operators in the Home Improvement Stores industry. Declining housing starts and patchy performance from nonresidential markets have forced operators to focus on customers involved in renovation and remodelling projects. The industry sells fairly homogenous product lines, which has led to priced-based competition between operators. As a result, few key companies that use their economies of scale to accumulate and maintain high market shares largely dominate the industry. Over the next five years, volatile levels of construction activity and low consumer sentiment will keep industry expansion subdued.
... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
In the 10 years to 2021, industry value added, a measure of an industry's contribution to the economy, is expected to increase at an annualized rate of 3.0%. The overall Canadian economy is expected to grow at an annualized rate of 1.9% during the same period. The rise in popularity of do-it-yourself projects over the past decade has provided an important growth channel for this industry. Additionally, the growing scope of larger companies has allowed margins to increase over the period, with more stores benefitting from economies of scale.
The industry has also experienced increasing homogenization across operators, leading to consolidation as the industry's larger companies take advantage of their economies of scale to consolidate market share... purchase to read more