Another solid year

The hardware and home centre business in the world’s largest market, the United States, continues to improve – albeit slowly – after the 2008 recession. Large and small retailers are predicting about a five per cent or better growth rate in 2014, similar to what many achieved in 2013. America’s DIY market is estimated to be slightly more than USD 300 billion.
Not all regions of the country, however, shared equally in the 2013 growth, as some areas continued to suffer recession woes. Much of California, for example, which is heavily dependent on agriculture, suffered the effects of a severe drought, which is continuing in 2014.
Fortunately, two major industries seem to be on a more solid footing now, which will encourage consumer spending. Automotive sales were moving at a very satisfactory pace last year, and it is estimated that they will grow again in 2014.
And, even more important for the hardware and home centre business: housing grew nicely in 2013 and is expected to grow even more robustly in 2014. It was specifically cited as one of the factors behind the sales gains made by Home Depot and Lowe’s. Or another example: Stock Building Supply, a smaller lumber chain with 69 units in 14 states and based in Raleigh, North Carolina, increased sales 21 per cent in the fourth quarter.
Many other independent retailers and small chains recorded gains of five per cent or slightly more, based on a survey conducted for DIY International. In large part, gains reflected local economic conditions.

America’s independent and small chain retailers rely heavily on hardware wholesalers, most of whom conduct twice-a-year buying markets. Early reports from 2014 markets indicate dealers are optimistic about 2014, as buying has been brisk.
Two of America’s biggest firms, Ace Hardware and True Value, recently got new CEOs, who are bringing new ideas to their retailers. Both co-operatives are helping dealers improve their websites, as well as offering ship-to-store programmes in which buyers can buy off the wholesalers’ websites, with access to huge inventories, and pick up merchandise at local stores.
They are also aggressively encouraging store remodellings and expansions with model-store programmes. That these pay off is illustrated by…