Hardware Retailing The Industry's Source for Insights and Information
The U.S. economy continues to improve, and home improvement product sales are up — factors that should only bode well for home improvement retailers.
Total home improvement product sales increased in 2015, and are expected to grow even more in 2016 and 2017, according to the Home Improvement Research Institute (HIRI).
HIRI reports:
“With solid employment growth, a pick-up in wages, and housing market activity continuing to show modest gains, we expect the pace of home improvement product sales in 2016 to slightly exceed last year’s performance. We project total home improvement product sales to increase 4.7 percent in 2016, with consumer market sales up 4.8 percent and the professional market advancing 4.6 percent.”
Major home centers had the largest increases in sales in the fourth quarter of 2015. HIRI’s data also shows that more specialized businesses, such as paint and wallpaper stores, lawn and garden equipment and supply stores, floor covering stores and appliance stores, saw only slight sales increases.
Applied to Retail: As the economy stays strong and sales in the home improvement industry grow, assess your own product sales. Did they increase in 2015? Are you already seeing growth in 2016?
If you can’t project a stronger 2016 than 2015, then don’t wait and create an action plan for a turnaround for the next three quarters.
In addition, use the Cost of Doing Business Study from the North American Retail Hardware Association (NRHA) to help you assess where your business’s weak areas are. If your sales are increasing but your profit margin isn’t, then take a look at the expenses, such as payroll, that could be cutting into your profitability.
