Hardware Retailing

DEC 2018

Hardware Retailing magazine is the pre-eminent how-to management magazine for small business owners and managers in the home improvement retailing industry.

Issue link: http://www.hardwareretailingarchive.com/i/1056221

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Page 29 of 78

December 2018 | HARDWARE RETAILING 25 W hile 2018 has shaped up to be another relatively strong year for sales in the home improvement industry, we may be facing a perception problem that could temper growth in the months to come. Let's talk about some of the positive forces that have allowed the home improvement retailing industry to once again outpace overall retailing this year. The driving force behind home improvement retail sales for the first half of 2018 has been the economy. Unemployment figures remain low, wages have risen and housing prices are up. Though interest rates have risen, they are still low by historical standards. This good economic news translates to more consumers buying and selling homes and renovating. The positive housing momentum has resulted in strong performance. Every source we use to monitor the home improvement market reports strong sales in 2018. The North American Retail Hardware Association (NRHA) estimates predict that industry sales for 2018 should come in at approximately $394 billion, an increase of about 5.5 percent over 2017. This number is slightly higher than we predicted last year, partly as a result of interest rates holding steady and also because of the way product sales were driven by record storm preparation and damage experienced in various parts of the country. It is also important to consider that we have seen, and should continue to see, some upward pricing pressures on many home improvement-related products. Market Measure The Industry's Annual Report 28 Industry Breakdown 29 Chain Results 30 Cost of Doing Business Study 32 Retail Store Performance 34 Financial Profiles 36 Industry Year in Review 38 Housing Market Outlook 40 Economic Outlook 42 Canadian Retail Report The information in this Market Measure report was gathered by Hardware Retailing staff from a variety of resources that are attributed throughout the feature. 2018 What We'll Cover

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