- 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
- 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
- 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
- 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
- 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