Home Center Market

Jun 1, 1995
110 Pages - Pub ID: LA388
Abstract Table of Contents Search Inside Report Related Reports

  1. Introduction
    Market Definition
    • Defining "Home Center" Is Tricky Business
    • Packaged Facts' Definition
    • Historical Overview: Home Center Forerunners Spring
    • Up in the 1950s
    • Home Centers, Hardware Stores, and Lumberyards Start to Blend
    • Home Center Institute Formed in 1971
    • Home Depot Drives Market Forward
    • Home Centers Spurred by Self-Promotion
    • DIY Habit Boon to Industry Growth
    • Stores Adding New Departments
    • Industry Keeps on Growing

    Home Center Characteristics
    • Store Size Trending Mostly Upward...
    • Number of SKUs
    • Product Mix
    • Wood Is Leading Category
    • [Table] Share of Sales by Product Category: Building Supply Retailers (1994)
    • Sales Per Store
    • Business Hours
  2. The Home Center Market
    • [Graphic] Retail Dollar Sales: Home Centers vs. All Home Improvement Retailers (1990-1994)

    Market Size and Growth
    • Home Center Sales
    • [Table] Estimated Retail Dollar Sales and Growth:
    • Home Centers (1990-1994)
    • Home Center Units
    • [Table] Estimated Number of Home Center Units: 1990-1994
    • Sales for All DIY Retailers Reach $116 Billion in 1994
    • [Table] Retail Dollar Sales and Growth of Home Improvement Retailers: 1990-1994
    • Home Improvement Units Exceed 46,000
    • [Table] Number of Home Improvement Units: 1990-1994 Home Center Share of DIY Retailer Sales Increasing
    • [Table] Home Center Share of DIY Retailer Sales and Units: 1990-1994

    Factors in Market Growth
    • A Strong Relationship to the Economy
    • Housing Starts Are Important Sales Indicator
    • House Resales Are Similarly Telling
    • Number of U.S. Households on the Rise
    • America's Homes Are Aging, Need Repair
    • Home Improvement Products Market on the Rise
    • [Table] Home Improvement Product Sales: 1989-1999
    • Weather a Key Factor for Home Center Sales
    • Natural Disasters Boost Sales
    • Aging Baby Boomers Bode Well for Market
    • Growth of Do-It-Yourself Movement
    • BIY Trend May Be Even More Important
    • Today's Consumer Craves Everyday Low Price
    • U.S. Retailing Dominated by Giant Chains
    • Aggressive Self-Promotion Drives Market
    • Regional Success vs. National Success
    • Industry Growth Driven by Added Square Footage
    • Community Resistance to New Home Centers
    • [Graphic] Projected Growth in Home Center Dollar Sales: 1995-2000

    Projected Market Growth
    • Home Center Sales to Reach $88 Billion by 2000
    • [Table] Projected Growth in Home Center Dollar Sales: 1995-2000
    • Home Center Units to Number Nearly 11,600
    • [Table] Projected Growth in Home Center Units: 1995-2000
  3. The Retailers
    • [Graphic] Share of Home Center Sales: 1994

    Leading Home Center Retailers
    • NHCN Top 500 List Illustrates Market Leaders
    • Home Depot Is Industry Kingpin
    • Nine Out of Top Ten Chart Dollar Sales Gains
    • Seven of Top Ten Chart Store Unit Gain
    • [Table] The Top Ten Home Center Retailers: 1993-1994
    • Top Ten Chains Claim 61% of Total Home Center Sales
    • [Table] Share of Home Center Sales: Top Ten Retailers (1993-1994)
    • Over Two-Thirds of NHCN's Top 50 Retailers Classified as Home Centers
    • Nine Home Centers Place at Billion-Dollar Level
    • Eighty-Four Lumber Has Most Stores Open
    • DIY Share Ranges from 100% to 25%
    • Contractor Sales Growing
    • Store Size Not Necessarily a Function of Sales
    • Lumber Specialists Tend to Carry Fewer SKUs
    • Number of Employees Reflects Total Store Sales
    • [Chart] The Top 50 Home Improvement Retailers: 1994

    Competitive Trends
    • Home Depot Sets the Pace
    • Retailers Trending Larger
    • Consumers Drive Home Center Industry
    • Consolidation a Driving Force
    • Going Public to Restructure Debt
    • Cutting Costs
    • Regional Variations in Growth
    • Smaller-Population Areas Being Tapped
    • Convenience, Proximity Important Considerations
    • Adding New Departments and Services
    • Adding SKUs
    • Emphasizing Power Tools
    • Increasing Store Size
    • Smaller Chains Try Different Strategies

    Competitive Profile: Home Depot
    • Sales Up 35% in 1994
    • U.S. Expansion
    • New Store Formats
    • In-Store Dining
    • New Direct Delivery System and Outside Sales Force
    • How-to Home Improvement Shows in the Works
    • International Expansion

    Competitive Profile: Lowe's
    • Sales Top $6 Billion in 1994
    • Larger Stores and More DIY Emphasis
    • Regional Distribution Centers and New Store Prototype
    • Company Co-Founds HIRI and Establishes Home Safety Council

    Competitive Profile: Builders Square
    • Kmart Subsidiary Places Third Among Home Centers
    • Unprofitable Stores Shut Down
    • Company Moving to Builders Square II Format
    • New Store Opened in Puerto Rico

    Competitive Profile: Payless Cashways
    • Sales Increase 5% in 1994, to $2.7 Billion
    • Current Focus on Both DIY Shoppers and Professionals
    • New Store Formats, Some Not Successful
    • New Company President and Mexican Expansion

    Competitive Profile: Hechinger
    • Fifth-Ranked Chain Increases Sales 17% in 1994
    • Company Emphasizing HQ Format
    • Another New Concept: The Home Project Center

    Competitive Profile: Menard
    • Company Posts Strong Increases in Units and Sales
    • New Stores Opened in Michigan and Indiana
    • Superstore Slated for 1995

    Competitive Profile: HomeBase
    • Sales Down 14% in 1994
    • Focus Returns to the West
    • Chain Emphasizing Trained Sales Staff
    • New "Category-Dominant" Store Format
    • EDI Contributes to Vendor Alliances

    Competitive Profile: Eighty-Four Lumber
    • Sales Reach $1.3 Billion in 1994
    • Chain Increasing Its Professional Edge
    • Unit Expansion Planned

    Competitive Profile: Wickes Lumber
    • Wickes' Largely Focused on Professionals
    • Company Hot on Acquisitions
    • Appealing to Builders and DIY Customers
    • Several New Additions in 1994

    Competitive Profile: Sutherland Lumber
    • DIY Consumer Is Primary Market
    • Increased Competition from Top-Ranked Home Centers

    Competitive Profile: Grossman's
    • Sales Down 10% in 1994
    • Store Closings and Downsizing
    • Contractors' Warehouse Aimed at Professionals
    • New Project-Pros Format Being Tested
    • Expanding South of the Border

    Competitive Profile: Rickel Home Centers
    • Merger with Channel Is the Big News
    • New Rickel Represents Warehouse Alternative
    • Channel Name to Be Dropped

    Competitive Profile: Scotty's
    • Company Holds Steady in Sales and Store Count
    • Company Focusing on Professionals, Training
    • Scotty's Hot TV Spots Being Recycled

    Competitive Profile: Handy Andy Home Improvement Centers
    • Company Adds 13 Stores in 1994
    • Competitive Activity Includes Central Hardware Acquisition
    • and New Merchandising Plan
    • Personnel Changes

    Competitive Profile: Ernst Home & Nursery
    • Ernst Ups Sales, Goes Public in 1994
    • Secondary Markets Are Major Focus
    • Kitchen/Bath Design Centers Added to Stores
    • First Superstores Open in 1991, Many More Planned
    • Customer Service Is Name of the Game

    Competitive Profile: Eagle Hardware & Garden
    • Western Chain Increases Sales 61% in 1994
    • A Strong Focus on Selection and Service
    • A Market Saturation Approach
    • Canadian Stores Divested
    • Eagle Goes to Court

    Competitive Profile: Orchard Supply Hardware
    • Sales and Units Show Healthy Growth
    • Service and Selection Are Major Focal Points
    • New Stores Open in 1994 and 1995
    • Weather Conditions Affect Sales

    Competitive Profile: Pergament Home Centers
    • Sales Focus Holds Steady at 90% DIY
    • Pergament Express Stores Capitalize on Smaller Size
    • Company Cuts Costs

    Competitive Profile: National Home Center
    • Arkansas's Largest Home Improvement Retailer
    • Competitive Approach Involves Customer Service
    • and Store Expansion
    • Company Facing Increasing Competition
  4. Retail Competition
    Retail Competition
    • Home Center Gains Based on Wide Selection and Low Prices
    • Lumberyards Re-emphasizing Core Business
    • Independents Find the Going Tough, Compete by
    • Stressing Customer Service
    • Independent Store Survival Tactics
    • Independent Stores That Are Contractor-Oriented May
    • Have Competitive Edge
    • Buying Groups Help Smaller Stores Compete
    • on Selection and Price
    • Smaller Stores Focus on Either DIY or Professional; Home
    • Centers Trend Toward Diversification
    • Surviving Hardware Stores Larger
    • ...But There's Still a Place for Small
  5. The Home Improvement Shopper
    The Home Improvement Shopper
    • Nearly Half of Adults Shop at Home Improvement Stores
    • Heavy Shoppers Are Largest Group
    • [Graphic] Frequency of Shopping at Home Improvement Stores
    • Shopping Linked to Education and Occupation
    • Consumers Age 45-64 Represent Core Market
    • Home Ownership Another Key Factor
    • Suburbanites and Midwesterners Also Likely Shoppers
    • Likelihood of Shopping Increases with Income
    • [Chart] Demographic Characteristics Favoring Home Improvement Store Shopping by Number of Shopping Trips
    • Resisters
    • Two-Fifths of Adults Shop at True Value, Ace, or Home Depot
    • [Table] Home Improvement Store Shopping by Retail Chain
    • Age Is Key Factor Regardless of Store
    • [Chart] Demographic Characteristics Favoring Shopping in Home Improvement Stores: By Chain
    • One-Third of U.S. Adults Make Home Improvements
    • Most Home Improvements Cost $2,000 or Less
    • [Graphic] Share of Adults Doing Home Improvements in Last 12 Months: By Amount Spent
    • Age a Key Factor in Home Improvement
    • Occupation of Home Improvers
    • Household Income Exceeds $30,000
    • Home Ownership a Natural Indicator
    • Family Status and Household Size
    • Home Improvers Often Midwestern and Suburban
    • [Chart] Demographic Characteristics Favoring Home Improvement: By Amount Spent
    • Wallcoverings, Door Knobs, Locks Most Popular Products
    • [Table] Number and Share of Adults Buying Home Improvement Goods in Last 12 Months: By Product Type
    • Bathroom Is Most Common Area for Renovation
    • [Table] Interior and Exterior Home Remodeling One-Fourth of Americans Painted Homes in Past Year
    • [Table] Interior and Exterior Home Painting (Last 12 Months
    • Middle-Aged Homeowners Are Key Consumer Segment for Home Improvement

    Appendix: Addresses Of Selected Retailers

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