Under construction: External competition has become more prominent, posing a threat to operators

Operators in the Home Improvement Stores industry in Canada cater to a wide variety of markets, including professional, do-it-for-me and do-it-yourself customers. Industry players offer a broad range of products aimed at improving existing structures and constructing new ones. While the industry is heavily reliant on the health of the overall economy, industry performance is also dependent on dynamics in construction-related markets. Over the five years to 2019, volatile construction markets and external competition have become more prominent, posing a threat to industry operators. The industry sells fairly homogenous product lines, which has heightened priced-based competition...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The industry lost steam as consumer confidence decreased and consumer spending grew at a slower rate
  • External competition has intensified for operators
  • Nonresidential construction activity is expected to pick up sharply
  • Industry Report - Industry Products Chapter

    Tools, equipment, paint and flooringTools, equipment, paint and flooring are estimated to account for 40.3% of industry revenue in 2019. Tools include power tools, saws, woodworking tools and tool accessories. Flooring includes carpets, tile, hardwood and rugs. This segment's share of revenue has increased over the five years to 2019, as industry operators have taken business from small specialty retailers such as paint stores and floor covering stores. Although specialty stores offer a wide range of products and highly trained employees, industry operators have increasingly focused on customer service and expanding product lines. Over the next five years, this segment is expected to remain the largest industry product category...purchase to read more.

    Additional Insights for the Home Improvement Stores Industry

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

  • Having a loyal customer base
  • Having a wide and expanding product range
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Housing starts in the Home Improvement Stores industry impact industry performance..

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    What's in this report

    What is the Home Improvement Stores Industry?

    This industry sells a broad range of home repair and maintenance goods, such as hardware tools, electrical goods, lumber and structural material for construction and renovations. Operators purchase goods from domestic and international manufacturers and wholesalers and sell them to end users, such as do-it-yourself consumers and professional contractors. Stores that focus on a specific area, such as flooring or wall coverings, are excluded from this industry.

    Industry Products
  • Lawn and garden supplies
  • Tools, equipment, paint and flooring
  • Lumber and other building materials
  • Household appliances and housewares
  • Industry Activities
  • Retailing plumbing products
  • Retailing electrical products
  • Retailing tools
  • Retailing housewares
  • Retailing hardware
  • Retailing lawn and garden supplies
  • 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
  • Housing starts
  • Residential renovation expenditure
  • Number of households earning $100K or more
  • Overnight rate

  • Current Performance
  • Downstream demand
  • Competitive environment
  • Seasonality and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Major market woes
  • Industry structure
  • Profit activity
  • Table: Home Improvement Stores Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Electricians in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Electrical Equipment Wholesaling in Canada
  • Farm, Lawn & Garden Equipment Wholesaling in Canada
  • Floor Covering Wholesaling in Canada
  • Lumber Wholesaling in Canada
  • Plumbing, Heating & Air-Conditioning Equipment Wholesaling in Canada
  • Tool & Hardware Wholesaling in Canada

  • Products & Services
  • Tools, equipment, paint and flooring
  • Household appliances and housewares
  • Lumber and other building materials
  • Lawn and garden supplies
  • Chart: Home Improvement Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Do-it-yourself market
  • Commercial market
  • Do-it-for-me market
  • Chart: Major Market Segmentation for the Home Improvement Stores Industry

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

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Home Improvement Stores Industry

  • Industry Globalization
    Home Depot of Canada Inc., Lowe's Companies Canada ULC,
  • Table: Home Depot of Canada Inc. - financial performance
  • Table: Lowe's Companies Canada ULC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Home Improvement 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 Home Improvement Stores Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Residential renovation expenditure (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Do-It-For-Me (Difm)
  • A category of customers who purchase materials themselves and hire third parties or professionals to complete the projects.
  • Do-It-Yourself (Diy)
  • A category of customers that includes homeowners who purchase products and complete their own projects.
  • Point-Of-Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • Professional Customers
  • Professional remodellers, general contractors, repairmen and tradesmen.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Home Improvement Stores market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Home Improvement 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 Home Improvement 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 Home Improvement Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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