8/2/2019 Retail DIY Market Measure 2011
1/20
2011
An
nuAl
Repo
Rt
Hardware Retailing8
Nove
mber2011
www.nrha.org
8/2/2019 Retail DIY Market Measure 2011
2/20November 2011 Hardware Retailing 29
By Dan Tratensek, [email protected]
Yet when the kitchen door
sgs p, all sv as s a
ay s f lasaga f
abl sx a yu s a sll
sg.
tas sam f
flg all av g
ga m vy.
w g u abl, u
s a s ag
f umplym mpv,
ag f ss bu ba
a ag f uss sa
sllgt l m sg
a a .
i 2009, sa m
mpvm ma bm u
sm g $260 bll
ag a a a fv-ya l. S,
gs ul av g
b 2010. A y .
i 2010, m mpvm
usy ps sals f $277.7 bll
ag u smas. ts p-
s a as usy sals f
abu 4.7 p ya v ya.
A Mixed Blessing
wl may sm a gv
gvm mu f
g ayg g s ays,
sms a ax vs ff
ms ug
fs sval ms f 2010 au-
ally lp ful sals m
mpvm usy.
Y kw ha fig y g wh y
ar siig i a rsara waiig fr
h srvr brig yr driks ad sh
js ks assig by yr ab.You check your
watch, you clear your throat and you think to
yourself the drinks have to get here any minute,Ive been waiting so long.
ImrvmRai Hm
Mark prfi
www.nrha.org
Despite Limited Growth, Industry
Still Waiting for Recovery
8/2/2019 Retail DIY Market Measure 2011
3/20
2011
AnnuAl
Repo
Rt
Hardware Retailing0
Nove
mber2011
www.nrha.org
Ufualy, gvms p
a ax vs ul gv
usg ma a pus sa fal
m fu, a af vs
xp, usg u s
mal lvls ugu ms f
ma f ya.
t g s f m mpv-
m usy ag las alf
f 2010, v, as a usy
as aga gg. Af
suv yas f ls, m
mpvm sals U.S. au-
ally up aga.
hag 2011, aga
l lggly a a
a ug uslvsu s
av b mg u x.
t g s s, g u s.
t ba s, as g.
Las ya, p a 2011 sals
ul as $294.7 bll. w fl
a s sg as ul b ful
by a bu usg ma as
affably lvls a v
as-sa buys ul a ava-
ag f l ps.
A m, u smas f a usg
bu a m bus m
vy al a sm
aalyss a p bu
f a p up usg ma
ul aus mvm ma.
By , a ll 2011 a
av all alz a vy
usg s sll ls fu
a. Bu as ly ba s
a amp usy g 2011.
h a a f fas a l
usy s ya:
Unemployment. dsp
lvls f usg affably a
ls f mgag as s
a qualfy f a la f yu
av a jb. A yu a
su fa a umply-
m as a gavly mpa
v vuals av jbs as
y as a sp v as
m ul.
Lending. i a f faal
ss a f yas ag bas av
aly g lg s-
s. wl ms mgag bs
ll ll yu a m las a sll
u b a, y qu
la a a g
paym. i s s pa f s
qum a s pg may
yug sums u f ma.
tg lg ss av als
a a mpa bussss a av
s bas ls.
NRHA and Hardware Retailing take
a large number of factors into account
when determining our overall sales
estimates for the industry.
We use a formula that incorporates
information from NRHAs Annual Cost
of Doing Business Study, direct retailer
research, the U.S. Department of
Commerce NAICS 444 sales reports and
information from other research outlets as
the basis for our calculations.
We then weight this information
against company reports from the
industrys publicly traded corporations,
wholesaler sales figures and additional
data from retail and industry partners.
All of this data is combined using a
formula to determine our industry sales
estimates and forecasts.
NRHA and Hardware Retailings
industry estimates consider sales from
all retailers whose primary business is
selling home improvement products.
We do not include sales from operations
that do not utilize a retail sales model or
service only other companies.
Our estimates include sales through
the industrys hardware stores, home
centers, big-box outlets and retail
lumberyards.
Idsry Sas Mhdgy
$200
$250
$300
$350
$400
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$272.
1
$300.
6
$300.
3
$29
4.
5
$265.
2*
$277.
7
$284.1
$29
4.
9
$307.
1$320.
6$336.
3
*Number revised downward from 2010 reports.
(Sales in Billions)
ta Rai Sas ByHm Imrvm Rairs
CAG 2005-2010 = 0.41%
CAG 2010-2015 = 3.9%CAG-Compound Annual Growth
th IdsrysAa Rr
8/2/2019 Retail DIY Market Measure 2011
4/20November 2011 Hardware Retailing 3www.nrha.org
ts as aus sm als l
ba xpas plas, ag
pu ls a busss mvs
a ul av lp pm sals.
Governmental Gridlock. if yu av
, s a b f amy
wasg s ays. t plal
ps a b b ss f
asl sm b m
pg s a y
slvg as m ubls.
Mal 2011 sa a
pus b f faulg s
las. n f s s f
amg sums busss s
s as gg mally
us au l
a ug b fa-
ally sg.
Changing Habits
S, a av suss all
fas a su g 2011, yu
may b g, ay bg
sps? t s as s ys.
wl m u a
ay s s gav, sums
a sll spg my m
mpvm a a a f ps
abu abs av ag:
Home repair and maintenance is still
a primary catalyst. w may ppl
sg fg mvg a
m, y a lf avg pa
a maa xsg ms. wl
s u a m s ypally sp
m mpvm puass au
sal f a m, a s ma
ppl a spg fx ls,
pa ms, ap fls a m.
The rental market. ts s aa
f usg usy a s au-
ally bus s ays. As m yug
ppl lay puass famls f
mslvs lg ma
f buyg a mal s ly
p. ts sug al avy
mas sals f pus ppy
s as al ls uv.
Niche areas. dsp
my, Amas sll f ays
sp my bbs a
luxus a may f s ms a
sl ug m mpvm a-
ls. ta f sa bm v
s p suppls, fam a a,
la a ga a ug a
us pus.
ts sum spg sul
slg gas 2011 f m
mpvm usy. A l sm
f g ug fs
quas f ya sm ms,
s a s ya v ya
avas mpg agas
ax-v ful sals f 2010.
As a sul, a apag sals
2011 g a $284.1 bll, ll
s f u p fm las ya
bu sll a as f abu 2.3 p
v 2010s als.
What Lies Ahead?
ta lavs us qus f
a ls aa f usy x
ya a mvg x sval
yas. n lg a usy as
jus l a usy a p
masu g. n, a ya
pg fuu ll play u s
mu m fful.
w, alg ms aalyss,
sll blv usg ma s s f
a bu a a bu us,
m mpvm usy ll
xp a sg lf. t al qus
s, ll usg bu ba?
rg , nrhA fls a 2012 ll
s maly sg g
usy bu bggs lap fa ll
u la 2012 2013 m fam.
By s m, a l f ssus ll bg
sl u plally a as
a sul f l-ya pls, a
amsa a gu-s pull
uy u f faal mass,
a lly s sm fm f jb a
usg v pgams a .
o umplym bgs mg
, a paulaly f a -
vs lp m buys ba
abl, as sums sul sa
g ug usg vy a
su sul amp up.
Bu f , a sll sg ,
sag a , g
s ll
fally av.
To keep perspective on how other
analysts see the home improvement
retail industry developing over the
next several years, to the left are
the predictions from the IHS Global
Insights and the Home Improvement
Research Institute (HIRI).
Source: IHS Global Insights/HIRI
Ahr Viw
2011 $270 Bil.
$250 $300 $350 $400
2012 $285.8 Bil.
2013 $301.6 Bil.
2014 $322.7 Bil.
2015 $341.1 Bil.
8/2/2019 Retail DIY Market Measure 2011
5/20
8/2/2019 Retail DIY Market Measure 2011
6/20www.nrha.org
2011
AnnuAl
Repo
Rt
Hardware Retailing4
Nove
mber2011
Hardware Retailing www.nrha.org
Mark Shar prfi
t 10 Hardwar, Hm Crad lmbryard Chais
Sales(as % f al
usy)
No. of Stores(as % f al
usy)
2006 55.6% 13.0%
2007 50.9% 13.8%
2008 48.3% 13.7%
2009 48.2% 13.4%
2010 47.2% 14.4%
2006-2010Percentage Point Change
-8.4% 1.4%
Rakig t 10 Hm Imrvm Chais
2010 Sales( blls)
Stores at End of 2010 Stores as of Fall 2011
Hm D
Atlanta $68.0 2,248 2,242
lwsMooresville, N.C.
$49.0 1,749 1,753
ABC SyBeloit, Wis.
$4.1 457 460
pr-Bid HdigsDenver
$3.5 470 450
Mard Ic.Eau Claire, Wis.
$2.2 240 260
84 lmbr
Eighty Four, Pa.
$1.5 281 265
Sck Bidig SyRaleigh, N.C.
$0.9 57 57
Sars Hardwar SrsHoffman Estates, Ill.
$0.7 106 94
Shrad lmbrKansas City, Mo.
$0.7 55 55
orchard Sy HardwarSan Jose, Calif.
$0.7 88 89
Source: Company Reports and Hardware Retailing Estimates
Grwh prfi
t 10 Chais
Net Sales( blls)
No. of Stores
2006 $167.1 5,371
2007 $152.8 5,672
2008 $142.1 5,532
2009 $130.7 5,318
2010 $131.3 5,725
2006-2010Compound Annual
Growth Rate
-5.8% 1.6%
t 10 Rss
8/2/2019 Retail DIY Market Measure 2011
7/20www.nrha.org
2011
AnnuAl
Repo
Rt
Hardware Retailing6
Nove
mber2011
December 2010
Orgill fm a pasp
caaas casl Bulg cs Gup
a bga svg als ugu
uy. By f 2011, ogll
plas av all pus bm
caaa mpla ms f pa-
agg a laguags.
January 2011
True Value au s mpa-
abl-s sals up 0.3 p
f 2010. t mpay als p
a s -mm avs
sussful, g a m a
70 p f l puass
a spp tu Valu ss f
usms p up.
Lowes Cos. la ff 1,700 ml
maags a a a u-
sas f uly, pa-m sals saff
s. t mpay f
us f ml-maagm jbs
a lma s b asssa
s maag a s maag.
February 2011
Lowes fm ps Lay S
au ul Ju 2,
af 42 yas mpay.
U.S. fas u-pu cs
maufaus by m a 40 p
sp lsg fas a ls mau-
faug jbs.
Lowes ps a s mpaabl-
s sals as 1.1 p a
s ags up 39 p
fu qua f 2010. Sals
as 3.1 p $10.5 bll,
up fm $10.2 bll fu
qua 2009.
Walmart p 2010 fu
qua sals f 2010 pp
$405 bll, a as f 1 p
v fsal ya 2009. walma U.S.
mpaabl-s sals f fu
qua bl gua. n sals
f fu qua f fsal ya
2010 $112.8 bll, a as f
4.6 p fm $107.9 bll
fu qua f 2009.
Home Depot p sals f
$15.1 bll f fu qua
f fsal 2010, a 3.8 p as
fm fu qua f fsal 2009.
cmpaabl-s sals up 3.9
p, a mp-sals f U.S. ss
up 4.8 p.
March 2011
Blish-Mize lba s 140 a-
vsay a s spg buyg ma
ovla Pa, ka. t als
sbu as fu 1871 by
bs--la a s sll famly
a pa ay.
Ace Hardware p s ma-
s sals mpaabl ms
ss as $40.6 mll
fu qua f 2010, mpa
2009. Fu qua al vus
$859.3 mll, a as f $59
mll 7.4 p fm 2009.
April 2011
Walmart bga bulg s fs
expss sa small fma s
s lss a - sz f
a avag walma Sup
Gy, A., abu 20 mls sus
f walmas Bvll aqua-
s. t expss s masu
14,400-squa-f.
Handy Hardwares fs qua
suls s vall sals as
4.1 p mpa sam m
2010. t mpay als as
a mpu pag sysm
ug fs qua f 2011.
May 2011
Home Hardware Centers a tyal
Avss a a al pa-
s a maagm mpay,
cal n ral Gup (cnrG),
LLc. cnrG s jly by
mpas a ll ally a
pa hm haa c
a l maagm a
pas suu ll sv as a
plafm f fuu al g. cnrG
sa p xpa hm haa
c al pas by
Msssspp a Lusaa.
Industry
Yar i Rviw
8/2/2019 Retail DIY Market Measure 2011
8/20November 2011 Hardware Retailing 37www.nrha.org
Ace Hardware p a s fs
qua mas sals mpaabl
ms ss as 2.2 p
mpa 2010 a al vus
as 2.8 p $23.4 mll.
Lowes Cos. p s mpaabl-
s sals as 3.3 p a
sals as 1.6 p $12.2
bll fm $12.4 bll ug
fs qua.
Target au mpaabl-s
sals as 2 p ug
fs qua l walmas mp-s
sals pp 1.1 p. hv,
walmas fs qua sals up
1.1 p a tags sals as
2.8 p.
Home Depot p s vall mpa-
abl-s sals as 0.6 p
a U.S. mpaabl-s sals
0.7 p. Sals f fs qua
as 0.2 p $16.8 bll.
RONA au s fs qua
sam-s sals as 12.6 p
a al sals as 4 p
$38.7 mll; m as
$19.8 mll.
The Merit Group, s bus-
ss as Laas a Fv Sa, fl
gaz u cap 11 f U.S.
Baupy c. t mpay ba
a mmm f a $55 mll b
pssss faly fm s s l,
rgs Ba, u pas
ug gaza pss.
Home Depot u a a-
l v s ss a a b
us as a p, al-al a a
mbl as gs. hm dps Fs
P a b us ly upa
vy us, bu als as
usms quss a pss
sals asas u avg g
up gss.
The National Hardware Show sa
a 4 p as aa
s ya, p f 20 p
as 2010.
June 2011
Walmart ls s appal f ms f a
$187.6 mll v f Psylvaa
uly s aus ls
lags al f yg m mal
a s bas.
A suvy s m als a
fallg vm gaz m. of 129
als suvy, 94.5 p sa y
vmz by gaz mals
pas ya. 84.8 p sa
pblm as ly s pas
yas.
8/2/2019 Retail DIY Market Measure 2011
9/20
2011
AnnuAl
Repo
Rt
Hardware Retailing8
Nove
mber2011
www.nrha.org
July 2011
The Federal Reserve Board s
ap s-all sp fs a 21 s,
up fm 12- ap pps
la las ya. ts umb s sll
fm pvus avag b a
asa s f 44 s.
August 2011
True Value p mp-s
sals 0.1 p fs sx
ms f 2011. rvu as 0.4
p $529.5 mll s
qua a vall vu f fs
alf f ya as $977.3 mll, a
as f 2.2 p mpa
sam m a ya ag.
Lowes Cos. p mpaabl-
s sals f s qua
as 0.3 p a as
1.7 p f fs alf f 2011.
Sals f qua as 1.3
p $14.5 bll, up fm $14.4
bll s qua f 2010.
t mpay als au a
ll buy ba up $5 bll f s
mm s a abuply ls
sv ss fllg las f s
s qua faal p.
Sears s qua fa-
al suls s al vus
as $125 mll $10.3 bll
a vall ms mpaabl-s
sals as 0.7 p. Sas
mpaabl-ss sals as 1.2
p a kmas mpaabl-s
sals fla. Sas caaa mpa-
abl-s sals pp 5.8 p.
Ace Hardware p a 0.6 p
mpaabl-ss sals as
s qua mpa pvus
ya. rvu as $5.6 mll
a al f $1.021 blla 0.5 p
jump fm sam qua 2010.
Walmart p mpaabl U.S.
sals 0.9 p s
qua. n sals f s qua
$108.6 bll, up 5.5 p fm
sam p las ya.
The Home Depot p s
quas sals s 4.2 p fm
s qua f fsal 2010 $20.2
bll. cmpaabl-s sals
psv 4.3 p, a mp-sals f
U.S. ss psv 3.5 p.
Do it Best Corp. xpa pa-
s Suas Asa sf
pg f fs f fu Pgs d
Bs hm cs. t fs s
p Aug. 4 Jaaa, isa.
September 2011
Ace Hardware as s
cafsma pu ffgs m
a 1,050 pus m a 1,000
A ss a. A fs sa
sllg cafsma-ba pus
2010 a m a 1,200 f s ss
ll ay a full l assm by
f 2011.
October 2011
Orchard Supply Hardware bam
p fm fm pa
mpay Sas hlgs cp. a
au plas bul 30 40
ss ugu calfa
mg yas.
Ace Hardwareb gu
Suffl, Va., s
336,000-squa-f imp
r-dsbu c (rdc) ll b
bul. csu s sul f
mpl May 1, 2012.
Industry
Yar i Rviw
8/2/2019 Retail DIY Market Measure 2011
10/20
2011
AnnuAl
Repo
Rt
Hardware Retailing0
Nove
mber2011
www.nrha.org
Rai Srprfrmac
By ms ay masu, 2010
as a ba ya f
m mpvm usy.
o g la, v,
as a as a g gap
b sg pfms a
als-as.
Ass all s fmas
m mpvm usy gap
b g- pfms a
avag pfms
2010. ts sms suggs a bs-
-lass als a maagg sal
busss fm avag ss.
ts sms av b
xaba by m -
s uy bu als appas
b a daa pss a as
b uflg m mpvm
alg ag ba ll bf
as m s.
Smply pu, bs f bs
u upfm magal
ss a a mu ga a. ts
suggss a ypal m
mpvm s s jus
mpg agas lal bg bx
f busss. isa, a avag
aa s, m
lumbya als as b gly
abu p
ss av b s ls,
as fl a a m mpllg
valu pps sums.
L may busss sas,
ug faal ms s-
saly a pblms f mpas
bu y f bg xsg pb-
lms la fus.
wl vg umbs
fllg pags s xmly
mpa a s fgus
a v fm n Ama
ral haa Assas Cost
Gap Widens Between High-Performanceand Average Retailers
of Doing Business (codB) suy.
t 2011 codB s a mpla f
pfma umbs f aa
ss, m s a lumbyas
fm 2010.
ea ya s p as
umbs fm a ff sampl gup
f ss. ta mas vall sals
fgus ll vay ly bas
sps. ts ya, av g-
lg sm f sass fm ss
a papa b f las
sus gv a mp-s mpas
apppa.
Hardware Stores
i 2010, avag aa s
xp a l f g. i
fa avag s papag
u codB suy p sals f $1.29
mll. wl suy sp
sampl ags fm ya ya, fm
a vall sal s pspv,
s as a mba f
sum suy a l
usg avy ( b a
xsg m sals) u p
usy g ugu
2010. t avag usm u a
typal haa S as 80,000,
s ss sally.
o f ma s a
mg s a sals plaza f
haa Ss papag
ms codB suy, as las
typal a hg-Pf Ss. t
sals gap b typal a hg-
Pf haa Ss 2010,
mpa pvus yas. i ms
suy, hg-Pf haa
S lps $2 mll sals ma
($2.01 mll) f fs m s
nrhA bga mplg suy. Mu
f s a b abu s ss
ably aa aly a 50 p
lag usm bas (117,908 vs. 80,000)
a typal haa Ss.
of 300 mp-s als (p-
sg 426 ss) papa
b las nrhA codB sus,
ya-v-ya (09-10) sals a
usm us slgly (1.8
p f b).
Gss Mags a b typal a
hg-Pf haa S sg
2010 as coGS l say fm a
sal mpas. Gss Mag Af
rba a Avag haa S
as 42.1 p f sals, l hg-
Pf haa Ss sa 43 p.
B Avag a hg-Pf als
als maxmz puas bas
ugu 2010 mpa 2009 lvls.
F mp-s gup, v,
Gss Mag (af ba) a s v
ya v ya, fallg fm 42.8 p
40.3 p f sals, as coGS as
m a 3.6 pag ps.
tal opag expss s g-
ally spaa xss b
typal a hg-Pf haa
Ss, a 2010 as xp,
as typal haa S sa
tal opag expss f 41 p
mpa 37.6 p f hg-
Pf haa Ss. t as
xps agy a s u,
jus a ll b a a ll b ,
a up a ffal f
3.4 pag ps. tal opag
expss als m a
2 pag ps f mp-s
gup ya v ya
i 2010, typal haa S
sa 2.2 s p bm l f
vy lla sals, as -
al typal haa S
las yas suy. hg-Pf haa
8/2/2019 Retail DIY Market Measure 2011
11/20November 2011 Hardware Retailing 4www.nrha.org
ss sa 6.2 s fall bm
l f vy lla sals, flg
ably buy b, ma g
mags fm usms a l
xpss m ffvly.
F mp-s gup, bm l
pfably as fm 1.6 p f
sals 2.1 p ya v ya.
Home Centers
Sals a typal hm c
2010 $3.02 mll, fm
a vall sal pspv as
slgly fm 2009 lvls. L
haa Ss suy, af
ffs f ss a usg
ss u play u 2010. t
avag usm u f 85,500 a
typal hm c 2010 u
fall mpa pvus yas as
sums pu ff m mlg pj-
s a as u a
f p g.
Als l haa Ss
suy, v, a ma s
hm c sampl as a sals
plaza b typal a hg-
Pf ss. t sals gap b
typal a hg-Pf hm c
amaally 2010, mpa
pvus yas. Aga, pg
m a sampl sp gup
ags fm ya ya, abu
alf f sp gup pa-
pag ya v ya, hg-Pf hm
cs p $5.63 mll sals
f fsal ya 2010, m a $2.5
mll a typal hm c.
L hg-Pf haa Ss, mu
f s a b abu s ss
ably aa m usms (110,900
vs. 85,500 a typal hm c).
of 52 mp-s hm c
als (psg 205 ss)
papa b las nrhA
cs f dg Busss Sus, ya-v-
ya sals as 7.3 p l
usm us as 15 p.
Gss Mags a b typal
a hg-Pf hm c
2011 Suy l say fm a sal
mpas. Gss Mag Af rba
a Avag hm c as 32.7
p f sals, l hg-Pf hm
cs a Gss Mag f 30.8
p, flg slgly g
p sum usm ba
(47 p p vs. 42 p sum
sals a hg-Pf hm cs,
typal hm c a 42 p
p vs. 47 p sum).
F mp-s hm c gup,
Gss Mag (af ba) as
by a alf a pag p, as coGS
as by aly sam amu.
exps l as a y ff
b typal a hg-Pf hm
cs 2010 quag a ff-
f m a 5 pag ps.
t typal hm c sa tal
opag expss f 31.7 p
mpa 26.6 p f hg-Pf
hm c. A p a a alf savgs
payll xpssa alf a p
upay xpsb vall
xps maagm bu
ff hg-Pf hm cs.
tal opag expss alms
a p g f mp-s hm
c gup ya v ya
i 2010, typal hm c sa
a bm l f 2.1 p f sals, l
hg-Pf hm c ss sa a
bm l f 5.3 p f sals. F
mp-s gup, bm l pfably
as fm 2.2 p f sals 2.5
p ya v ya. Bu vall, g
lvls f pfably u lu
ms hm c pas ays
u-pfmg my.
LBM Outlets
Sals a typal LBM oul
2011 $2.22 mll as typal
LBM oul suggl ba v. t
sals plaza b typal a
hg-Pf ss as als v
s agy, as sals a hg-Pf LBM
ouls $4.43 mll, ubl a
a a typal ss, bu sll l a
sal hg-Pf LBM ouls
pvus codB sus. t suggl f
s ss as lusv usm.
Jus 21,500 usms vs typal
LBM oul suy vsus 25,900
f hg-Pf LBM ouls. Bu aga,
v s g lvl as aly
11,000 usms fm hg-Pf
gup las yas suy as as
usg s u. o f y
ffs, v, as hg-Pf
gups ably maxmz a asa-
, as sals p usm a hg-Pf
LBM ouls as $171 vs. $103
avag asa a ypal ss. ts
ff als fl ff
usm maup f ypal s (68
p p vs. 22 p sum)
a hg-Pf ss (80 p p, 12
p sum).
F mp-s gup, sals
as 8.8 p fm 2009 2010.
t ff Gss Mags a
typal a hg-Pf LBM ouls
als fl slgly ff fus
f typal a hg-Pf ss. Gss
Mag (af ba) a typal LBM
oul as 26.7 p f sals, l
gss mag a hg-Pf LBM ouls
as 22.2 p. obvusly, hg-Pf
ss a m ga sllg g-
ug mmy LBM pus,
as als fl b ivy
tuv a Sals ivy ff-
s b gups.
F mp-s gup, v,
Gss Mag (af ba) a s v
ya v ya, fallg fm 42.8 p
40.3 p f sals, as coGS as
m a 3.6 pag ps.
i 2010, typal LBM oul baly
ma a pf, g a bm l f
.9 p f sals. ev hg-Pf
upas ly bug 2.7 p f
sals bm l. Ya v ya,
pfably as fm -0.6 p
0.9 p f sals, fu
llusa fful s u a
pf yu pmay fus s sllg
lumb a bulg maals ps.
8/2/2019 Retail DIY Market Measure 2011
12/20
2011
AnnuAl
Repo
Rt
Hardware Retailing2
Nove
mber2011
www.nrha.org
Rai Srprfrmac
Csmr C
0%
20%
40%
60%
80%
100%
Q42010
Q12011
Q22011
Q32011
29.4%
33.2%
41.3%
33.2%
21.1%
41.0%45.5%
52.5%
Respondents saying customer count was up over previous period.
Respondents saying customer count was down over previous period.
Source: NRHA/Hardware Retailing Confidence Panel
6
0%
60%
60 rc f h
cfidc a
fs csmrs
ar mr mivad
by convenience
than they were
20 years ago.
Sas Aciviy
0%
20%
40%
60%
80%
100%
Q42010
Q12011
Q22011
Q32011
0%
20%
40%
60%
80%
100%
Q42010
Q12011
Q22011
Q32011
Respondents saying sales were up in period over previous year.
Respondents saying sales were down in period over previous year.
Respondents saying average transactionsize was up over previous period.
Respondents saying average transactionsize was down over previous period.
37.5%
50.7%
25.6%34.4%
25.8%20.1%
43.3%58.5%
68.0%
39.5%
36.2%33.6%
18.2%
49.8%
57.8%53.0%
trasaci Siz
Source: NRHA/Hardware Retailing Confidence Panel
Source: NRHA/Hardware Retailing Confidence Panel
80
%80 rc f h
cfidc a
fs csmrs ar
mr ifcd
by the media (TV,Internet, Radio) than
they were in the last
20 years.
60 rc f hcfidc a
fs csmrs
ar mr mivad
by price than they
were 20 years ago.
nRHA Rai Cfidc paPanel consists of retailers across the U.S. and Canada
8/2/2019 Retail DIY Market Measure 2011
13/20
2011
AnnuAl
Repo
Rt
Hardware Retailing4
Nove
mber2011
www.nrha.org
Fiacia prfi f Hardwar Srs
oraig prfi 2006 2007 2008 2009 2010
Avg. Size Selling Area (sq. ft.) 8,000 9,100 9,097 9,000 8,760
Total Sales $1,157,356 $1,893,907 $1,425,296 $1,430,459 $1,330,152
Sales per Store $1,150,766 $1,421,740 $1,415,739 $1,413,209 $1,287,986
Total Asset Investment $573,701 $664,480 $809,795 $698,504* $687,707
Total Inventory $368,000 $436,800 $509,432 $450,000 $443,571
prdciviy prfi pr ui 2006 2007 2008 2009 2010
Sales per Square Feet of Selling Area $145 $156 $156 $157 $147
Inventory per Square Feet of Selling Area $46 $48 $56 $50 $51
Net Sales to Total Assets 2.0x 2.9x 1.8x 2.0x 1.9x
Net Sales to Total Inventory 3.1x 4.3x 2.8x 3.1x 3.0x
Total Sales per Employee $136,160 $135,404 $149,025 $148,759 $143,110
Avg. Size of Transaction $15 $16 $17 $17 $16
prfiabiiy prfi 2006 2007 2008 2009 2010
Gross Margin 39.7% 39.4% 41% 39.7% 40.6%
Net Profit (Before Taxes) to Net Sales 2.9% 2.5% 2.6% 2.2% 2.2%
Gross Margin Return on Inventory 130% 133.3% 162.2% 128.5% 122.2%
Return on Net Worth (Before Taxes) 10.1% 8.5% 8.6% 8.3% 7.8%
Source: North American Retail Hardware Association. Figures based on responses to annual Cost of Doing Business Study.
*Average of five years historical assets due to influence of response data
Icm Sam 2010
Net Sales 100%
Cost of Goods Sold 59.4%
Gross Margin 40.6%
Patronage Dividend/Purchase Rebate 1.5%
Gross Margin Plus Purchase Rebate 42.1%
Total Expenses 41%
Gross Operating Profit 1.1%
Other Income 1.1%
Net Profit (Before Taxes) 2.2%
Baac Sh 2010
Current Assets 76.8%
Fixed Assets 23.2%
Total Assets 100%
Current Liabilities 15.2%
Long-Term Liabilities 32.1%
Total Liabilities 47.3%
Net Worth 52.7%
Total Liabilities and Net Worth 100%
Source: North American Retail Hardware Association. Figures based on responses
to annual Cost of Doing Business Study.
Fiaciaprfis
8/2/2019 Retail DIY Market Measure 2011
14/20November 2011 Hardware Retailing 45www.nrha.org
Fiacia prfi f Hm Crs
oraig prfi 2006 2007 2008 2009 2010
Avg. Size Selling Area (sq. ft.) 14,000 12,000 12,000 12,000 10,600
Total Sales $4,590,136 $5,635,077 $5,172,285 $4,169,156 $3,836,680
Sales per Store $4,179,306 $3,634,461 $3,847,389 $3,379,518 $3,024,520
Total Asset Investment $2,220,262 $1,943,465 $1,852,690 $1,823,371* $1,748,807
Total Inventory $1,190,000 $948,000 $985,631 $924,000 $897,137
prdciviy prfi pr ui 2006 2007 2008 2009 2010
Sales per Square Feet of Selling Area $328 $303 $321 $282 $284
Inventory per Square Feet of Selling Area $85 $79 $31 $77 $84
Net Sales to Total Assets 2.1x 2.9x 2.8x 2.3x 2.2x
Net Sales to Total Inventory 3.9x 5.9x 5.2x 4.5x 3.4x
Total Sales per Employee $199,571 $165,203 $192,369 $194,225 $183,304
Avg. Size of Transaction $45 $35 $41 $38 $35
prfiabiiy prfi 2006 2007 2008 2009 2010
Gross Margin 31.3% 35.1% 33.5% 31.7% 31.3%
Net Profit (Before Taxes) to Net Sales 2.8% 1.9% 1% 1.7% 2.1%
Gross Margin Return on Inventory 124.5% 138.9% 135.3% 121.1% 110.4%
Return on Net Worth (Before Taxes) 9.4% 5.9% 9.6% 5.1% 5.5%
Source: North American Retail Hardware Association. Figures based on responses to annual Cost of Doing Business Study.
*Average of five years historical assets due to influence of response data
Icm Sam 2010
Net Sales 100%
Cost of Goods Sold 68.7%
Gross Margin 31.3%
Patronage Dividend/Purchase Rebate 1.4%
Gross Margin Plus Purchase Rebate 32.7%
Total Expenses 31.7%
Gross Operating Profit 1.1%
Other Income 1.0%
Net Profit (Before Taxes) 2.1%
Baac Sh 2010
Current Assets 74.3%
Fixed Assets 25.7%
Total Assets 100%
Current Liabilities 17.2%
Long-Term Liabilities 16.4%
Total Liabilities 33.6%
Net Worth 66.4%
Total Liabilities and Net Worth 100%
Source: North American Retail Hardware Association. Figures based on responses
to annual Cost of Doing Business Study.
8/2/2019 Retail DIY Market Measure 2011
15/20
2011
AnnuAl
Repo
Rt
Hardware Retailing6
Nove
mber2011
www.nrha.org
Fiacia prfi f D-I-Y lmbryards
oraig prfi 2006 2007 2008 2009 2010
Avg. Size Selling Area (sq. ft.) 7,400 7,500 7,200 5,000 6,000
Total Sales $5,033,061 $5,088,503 $4,083,096 $3,872,256 $2,289,127
Sales per Store $4,707,751 $4,252,288 $3,022,463 $3,237,253 $2,216,316
Total Asset Investment $2,123,617 $1,631,225 $1,602,620 $1,370,317* $1,186,173
Total Inventory $976,800 $750,000 $852,593 $630,000 $489,889
prdciviy prfi pr ui 2006 2007 2008 2009 2010
Sales per Square Feet of Selling Area $680 $567 $420 $647 $369
Inventory per Square Feet of Selling Area $132 $100 $68 $126 $82
Net Sales to Total Assets 2.4x 3.1x 2.5x 2.8x 1.9x
Net Sales to Total Inventory 5.2x 6.8x 4.8x 6.1x 4.7x
Total Sales per Employee $239,670 $257,714 $241,797 $249,019 $221,632
Avg. Size of Transaction $101 $105 $98 $127 $103
prfiabiiy prfi 2006 2007 2008 2009 2010
Gross Margin 25.3% 23.2% 29.3% 25.6% 25.8%
Net Profit (Before Taxes) to Net Sales 2.1% 1.1% 0.8% -0.2% 0.9%
Gross Margin Return on Inventory 133.4% 134.3% 185.5% 135.4% 120.8%
Return on Net Worth (Before Taxes) 8.3% 4.4% 7.0% -0.5% 3.5%
Source: North American Retail Hardware Association. Figures based on responses to annual Cost of Doing Business Study.
*Average of five years historical assets due to influence of response data
Icm Sam 2010
Net Sales 100%
Cost of Goods Sold 74.2%
Gross Margin 25.8%
Patronage Dividend/Purchase Rebate 0.9%
Gross Margin Plus Purchase Rebate 26.7%
Total Expenses 27.1%
Gross Operating Profit -0.4%
Other Income 1.4%
Net Profit (Before Taxes) 0.9%
Baac Sh 2010
Current Assets 77.1%
Fixed Assets 22.9%
Total Assets 100%
Current Liabilities 15%
Long-Term Liabilities 37%
Total Liabilities 52%
Net Worth 48%
Total Liabilities and Net Worth 100%
Source: North American Retail Hardware Association. Figures based on responses
to annual Cost of Doing Business Study.
Fiaciaprfis
8/2/2019 Retail DIY Market Measure 2011
16/20
2011
AnnuAl
Repo
Rt
Hardware Retailing8
Nove
mber2011
www.nrha.org
Fiacia prfi f ladig pbicy Hd D-I-Y Chais 2010
oraig ad prdciviy prfi Hm D lw's Cs.
Number of Stores (at end of 2010) 2,248 1,749
Average Size of Selling Area (sq. ft.) 105,000 113,000
Total Sales $68.0 Bl. $48.82 Bl.
Total Asset Investment $40.13 Bl. $33.67 Bl.
Total Inventory $10.63 Bl. $8.32 Bl.
Sales Per Square Foot $288.64 $247.82
Inventory Turnover 4.1x 3.8x
Net Sales to Inventory 6.4x 5.9x
Total Sales Per Employee $211,838 $204,444
Average Size of Transaction $51.93 $62.07
Gross Margin Return on Inventory 219.4% 205.9%
Icm Sam Hm D lw's Cs.
Net Sales 100.0% 100.0%
Cost of Goods Sold 65.7% 64.9%
Gross Margin 34.3% 35.1%
Total Operating Expenses 25.7% 28.5%
Net Income (Before Taxes) 8.6% 6.6%
Baac Sh Hm D lw's Cs.
Total Current Assets 33.6% 29.6%
Cash 1.4% 1.9%
Receivables 2.7% nA
Inventory 26.5% 24.7%
Other 3.1% 1.0%
Fixed Assets 66.4% 71.0%
Total Assets 100.0% 100.0%
Current Liabilities 25.2% 21.1%
Long-Term Liabilities 27.7% 19.4%
Net Worth 47.1% 59.5%
Total Liabilities and Net Worth 100.0% 100.0%
Source: Company Reports and Hardware Retailing Estimates
Fiaciaprfis
8/2/2019 Retail DIY Market Measure 2011
17/20November 2011 Hardware Retailing 49www.nrha.org
prfi f Whsaig Craivs ad naia Disribrs
Ac Hardwar
C.D I Bs C.
tr Va
C.orgi Ic.
Hady
Hardwar
Whsa
uid
Hardwar
Dis. C.
Number of Distrubution Centers 14 8 12 5 2 4
Current Number of Members4,450
2 4,100 4,600 appx. nA 1,259 594
Number of Non-Member
Accounts Served0 nA 0 nA 21 616
Dollar Volume Most Recent
Fiscal Year$3.53 Bl. $2.41 Bl 5 $1.8 Bl. $1.179 Bl. $235 Ml. $179 Ml. 4
Estimated Dollar Volume
Calendar 2011nA nA nA $1.3 Bl. $245 Ml. $184 Ml.
% Sales out of Warehouse 73% 38% 72% 71% 65% 81%
% Sales Out of Pool/Relay 0% 0% 0% 0% 1% 1%
% Sales Direct-Drop Ship 22% 46% 28% 29% 34% 18%
% Sales in LBM nA 16% 7% 9% 6% 5%
Number of Employees 4,000 appx. 1,403 2,400 appx. 1,761 446 335
Avg. Number of SKUs in
Warehouse80,000 67,000 nA 71,000 48,000 51,500
Sales/Inventory Ratio for 2010 nA 5.5 5 6.4 6.5 4.2 5.51 3
2010 Member Rebate
Distributed$70 Ml. 105.8 Ml. 5 nA nA nA $4 Ml.
% Cash 40% 79% 41% nA nA 50%
% Stock 60% 21% 16% nA nA 50%
% Other nA 0% 42% nA nA nA
Source: Company reports 1 Fiscal year 2010.
2 Domestic and International.
3 Warehouse sales only.
4 Fiscal year end Nov. 30.
5 Fiscal year end June 25.
prfi f Whsaig Mrchadisig Grs
pRo Gr Ic.Disribi
AmricaVa-ts Gr
Riab
Disribrs
Current Number of Wholesale Members 30 9 100 109
Number Member Wholesalers End 2010 31 10 100 109
Number Member-Operated Distribution Centers 40 15 104 200
Dollar Volume for 2010 Fiscal Year $3 Bl. nA $1 Bl. 1 $2.1 Bl.
Estimated Dollar Volume Calendar 2011 $3 Bl.8% as
v 2010$1 Bl. $2.1 Bl.
Number of Retail Stores Served by Members 35,000 10,000 2,000 20,000
Number of Program Stores 800 1,400 500 nA
Number of Employees 22 10 12 9
Source: Company reports
8/2/2019 Retail DIY Market Measure 2011
18/20
8/2/2019 Retail DIY Market Measure 2011
19/20November 2011 Hardware Retailing 5www.nrha.org
a vall uasss abu
my a fa a bas av
g lg ss suls
a ma a, sp affably, s
as vg as ul b pspv
m s.
cagg mgaps ll als
lly play a y l sap f
usg ma, as ll as a
s sums l f fm m
mpvm als. Baby bms
u ma usg
ma a ll u
v x a. Ag
hava Uvsys Sa f
nas husg p, usls
a by pss 65 l ll
jump 35 p fm 2010 2020.
As y , sm f m ll
mv usg vlpms
b p a asss lvg
ps. os may s
u ms, bu sm ll
sz a small m. Small
ms b fs f
yug famls as ll. As a sul,
mg yas ul s a ga
ma f s small-sz uss.
t yug gas, v,
als ll fm usls
f usg ma
a ff aga. Ag sass
p by 2010 dal csus,
usl g as 17 p l
2000s a as 1990s.
Sm f a l usl
g a b abu s-
s, sm f sal fas, l a
gg my ppula a
fa a m yug auls a sg
say pas la lf
sa f mvg u .
How Well Buy that Home
Mu ps a apps
wasg. i 2010, usg
ma g sm lf fm Fal
gvm, as appg up
s Fs-tm hmbuys tax c.
Gvm gulas a als yg
sm f pblms a
sa s usg ss fs
pla. FhA-su mgag pgams
a sll ass y p f
ma-m mbuys, bu
FhA a s av b asg m-
gag sua pmums a a m
auus f bs l
ss. is as asy buy a us as
us b.
ts a a m a abl
as quy l y us
. Ag Sa f nas
husg 2011 p, af usg ps
plumm, aly 15 p f m-
s a pps lss a
mgags. Ply f s sa
a-a quy ,
mas y lg a ass as
ma mpvms ms.
t lp, obama amsa-
x hm Affabl
rfa Pgam (hArP) ug Ju
30, 2012. ts pgam lps bs
fa up 125 p f
ms valu, as lg as m
ll supp la. t pgam als
alls ms fa a
pay mgag sua, v f
quy falls bl 20 p.
csums a ag f sm
sably bf y sp ag
ma a sa ag. w y
a, xp a p up ma
quly a ug supply f
usl ms ma. i
mam, als a ll avs
sg s --
yuslf sums lg sav
my l mpvg ms,
a ppy maags, may
av as full m s
ma.
Mifamiy prdci Idx*
10Q1
2009
Fr Sa
Fr R (Mark R)
Fr R (lw R)
Q1
2010
Q1
2011
Q2
2009
Q2
2010
Q2
2011
Q3
2009
Q3
2010
Q4
2009
Q4
2010
20
30
40
50
60
70
*The Multifamily Index is one of the leading indicators measuring confidence developers have in the multi-family market.
Any number over 50 indicates that more respondents report conditions are improving than those who report conditions
are getting worse.
Source: National Association of Home Builders
8/2/2019 Retail DIY Market Measure 2011
20/20
2011
AnnuAl
Repo
Rt
ove
mber2011
Hsigtrds
Hsig AffrdabiiyMdia-pricd
exisig Sig-
Famiy HmMrgag Ra 1
Mhy p&I
paym
paym
as %
Icm
Mdia
Famiy
Icm
Qaifyig
Icm 2
Cmsi
Affrdabiiy
Idx 3
2008 $196,600 6.15 $958 18.5% $62,030 $45,984 137.8
2009 $172,100 5.14 $751 14.8% $61,082 $36,048 169.4
2010 $173,100 4.89 $734 14.4% $61,313 $35,232 174.0
Aug. 2011 (p) $168,400 4.69 $698 13.6% $61,553 $33,504 183.7
1 Effective rate on loans closed
on existing homes.
Federal Housing Finance Board
2 Based on a 25% qualifying ratio for
monthly housing expense to gross monthly
income with a 20% down payment.
3 Index equals 100 when median
family income equals qualifying
income.
Source: National Association of
Realtors
Hsig Saisics By Rgi
nw Sig-Famiy Hms Sd (thousands of homes)
Yar ta u.S. nrhas Midws Sh Ws
2007 776 65 118 411 181
2008 485 35 70 266 114
2009 356 38 51 184 83
2010 331 22 38 168 103
Aug. 2011 (p)* 295 19 53 164 59
exisig Sig-Famiy Hms Sd (thousands of homes)
Yar ta u.S. nrhas Midws Sh Ws
2008 4,913 849 1,129 1,865 1,070
2009 5,156 868 1,163 1,914 1,211
2010 4,907 817 1,076 1,860 1,154
Aug. 2011 (p)* 5,030 770 1,090 1,940 1,230
Hsig Sars (thousands of homes)
Yar ta u.S. nrhas Midws Sh Ws
2007 1,355 143 210 682 320
2008 906 121 135 454 196
2009 554 62 97 278 117
2010 587 72 98 298 120
Aug. 2011 (p)* 571 61 80 292 138
Source: U.S. Department of Commerce
*Seasonally adjusted annual rate