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High-Profit Stores Outperform Industry Growth

Sales in 2015 grew by 5.81 percent, with the typical hardware store seeing a 2.9 percent profit increase; and, high-profit hardware stores outperformed with a 7.1 percent profit increase.

The contributing factors for the high profit stores include higher customer counts, lower operating costs, higher sales per customer and sales per employee.  Also, high-profit stores have less total store area, but are more efficient with their space (500 square feet more selling space, selling $50 more per square foot than typical home improvement stores). They also have, on average, two more employees, leading to an extra $30,000 in sales.  These are all important variables that will help the industry understand the challenges independents face.

These findings came from NRHA’s 2015 Cost of Doing Business study and represent just some of the types of research the organization will be sharing with the industry at its first annual State of Independents Conference. The event is scheduled for Dec. 10, 2015, at the Hyatt Regency O’Hare in Chicago.

This one-day conference will provide attendees with a wide ranging picture of how independent home improvement retailers are faring in today’s market, what they see as their challenges to growth in the future and how they view their relationships with their manufacturing and distribution partners. The event will present this information through a combination of proprietary research, panel discussions featuring leading independent home improvement retailers and networking opportunities.

For more information about the State of Independents Conference, or to register and take advantage of discounted early-bird registration rates, please go to www.hardwareretailing.com/soic. To learn even more about the event or to inquire about any NRHA research, please contact DanT@nrha.org.

About Sonya Ruff Jarvis

Sonya is managing member of Jarvis Consultants LLC. She has served in executive roles and been responsible for designing, launching and managing complex projects across diverse industries. She can be reached via email at sonya@jarvisconsultants.com.

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