$258.0bn
$XX.Xbn
731k
3,436
$XX.Xbn
Home improvement stores are a very mature industry 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, resulting 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 3.8% to $258.6 billion, with a 2.5% decrease in 2023 alone, when profit margins are estimated to climb to 14.2%.<br />Moving forward, interest rate hikes are anticipated to remain a major problem for home improvement stores. Due to the persistently high interest rates, residential activity is expected to remain diminished, at least during the beginning of the next period. Although residential activity overall is expected to slow, a rising disposable income may boost demand for certain segments like appliances and gardening equipment, meaning people are more likely to purchase smaller improvements rather than adding on large, costly additions. Nonetheless, home improvement store revenue is expected to rise at a CAGR of 2.1% to $286.2 billion over the five years to 2028, when profit margins are estimated to climb to 14.6%.
Industry revenue has grown at a CAGR of 3.7 % over the past five years, to reach an estimated $258.0bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Home Depot, inc. | 124,494.3 | 19,117.5 | 15.4 | |
Lowes Companies Inc. | 84,739.8 | 10,642.4 | 12.6 | |
Menard, Inc. | 14,711.1 | 1,825.2 | 12.4 |
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Home Improvement Stores in the US
Industry revenue is measured across several distinct product and services lines, including Lumber and other building and structural materials, Hardware, tools and plumbing and electrical supplies and Lawn, garden and farm equipment supplies. Lumber and other building and structural materials is the largest segment of the Home Improvement Stores in the US.
Lumber and other building and structural materials were needed for the massive jump in housing starts
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.
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NAICS 44411 - Home Improvement Stores in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Rising interest rates present a massive problem for the industry. Demand from the residential and nonresidential markets will bear the brunt of the rate hikes.
Learn about an industry's products and services, markets and trends in international trade.
COVID spurred residential activity. However, the effects were not felt evenly in each product segment.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Home improvement stores locate near high population density areas, benefitting from large downstream residential markets.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Rising interest rates have lowered the ability of companies to expand operations, halting concentration for major players.
Learn about the performance of the top companies in the industry.
Large home improvement stores saw massive demand during 2020 as consumers boosted spending on home improvements and other residential-related spending.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Low interest rates benefitted revenue through most of the period, and contractionary monetary policy during 2022 caused interest rates to rise, crushing demand from the reside...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
High-skilled labor caused wages to remain high, and an expected drop in activity in 2023 may hinder wage growth.
Including values and annual change:
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Key data sources in the US include:
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The market size of the Home Improvement Stores in the US industry in United States is $258.0bn in 2024.
There are 3,436 businesses in the Home Improvement Stores in the US industry in United States, which has declined at a CAGR of 1.6 % between 2018 and 2023.
The market size of the Home Improvement Stores in the US industry in United States has been growing at a CAGR of 3.7 % between 2018 and 2023.
Over the next five years, the Home Improvement Stores in the US industry in United States is expected to grow.
The biggest companies operating in the Home Improvement Stores market in United States are Home Depot, inc., Lowes Companies Inc. and Menard, Inc.
Retailing plumbing goods and Retailing electrical goods are part of the Home Improvement Stores in the US industry.
The company holding the most market share in United States is Home Depot, inc..
The level of competition is moderate and steady in the Home Improvement Stores in the US industry in United States.