The top 10 in America

With the U.S. economy showing positive signs of an upturn, home improvement retailing managed to maintain growth of almost 6 per cent in 2003 and the industry now amounts to about $ 375 billion (€ 302 billion) in sales. Like Canada and other countries that have experienced consolidation in recent years, a disproportionate amount of the market rests in the hands of a few large companies, most notably Home Depot, followed by its rival, Lowe’s.
These two retailers dominate the DIY scene in the U.S. Home Depot has almost 1,700 stores and sales approaching $ 65 billion (€ 52 billion) Lowe’s, with sales of $ 30.8 billion (€ 24.8 billion) generated by approximately 1,000 stores, is aggressively opening stores alongside Home Depot in major centres such as New York, Atlanta and Chicago.
The number-three retailer is Menard’s, a privately owned chain of 187 stores located in nine Mid-Western states. Considered the incumbent in these areas, Menard’s is bracing as more and more competitive big boxes begin opening up in its markets.
Meanwhile, the independents have remained strong, collectively increasing sales. Ace’s net income last year increased 22.7 per cent to $100.7 million (€ 81.2 billion) on wholesale sales of $ 3.16 billion (€ 2.55 billion, up 4.3 per cent over 2002), while its sales at retail top the $13-billion mark (€ 10 billion).
Retail sales in $ billion
Change in per cent
Stores
Home Depot
64.8
11
1,707
Lowe's
30.8
15
925
Ace Hardware
13.0
-
5,027
Truserv
10.5
-
6,200
Do-it Best
9.0
-
4,500
Menard's
6.5
6.6
187
Sherwin-Williams
3.5
5.1
2,688*
Stock Building Supply
2.77**
(7.8)
222
84 Lumber
2.5
15
453
Builders First Source
1.75
10
73
*Stores in the U.S., Canada and Mexico. Sherwin-Williams also operates about 60 stores in other countries, whose sales are not included in its total revenue.
**Stock’s numbers are for the fiscal year ended July 31, 2003.
Source: Hardlines (www.hardlines.ca)