Home Centers & Hardware Stores

The 10,800 home center and hardware store companies in the US sell merchandise related to home repair, maintenance, and improvement. Hardware stores generally carry full lines of home repair and maintenance products, but may carry little to no lumber or building materials supplies. Home centers typically carry lumber and building materials in addition to traditional hardware. Companies may offer installation, project management, equipment rental, repair, or warranty services. Customers include DIY (do-it-yourself) customers, DIFM (do-it-for-me) customers, and commercial customers (builders, contractors).

Competition From Alternative Sources

Home centers and hardware stores compete with a variety of alternative sources, including building supply distributors; mass merchandisers; warehouse clubs; design centers and showrooms; and mail order and online retailers.

Complex Inventory Management

The sheer volume of individual stock keeping units (SKU) managed by home centers and hardware stores is staggering.

Jul 27, 2026 - Remodeling Index Remains Positive

• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the second quarter of 2026 was 61, down one point from the first quarter, according to a July 2026 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the second quarter, the Current Conditions Index portion of the RMI remained unchanged at 70 compared to Q1 2026. The Future Indicators Index component of the RMI declined by two points to 52. The NAHB noted that the lock-in effect of high mortgage rates may incentivize existing homeowners to renovate rather than move, but that inflation may prompt some projects to be postponed, especially larger ones.
• Retail Dive reported that Tractor Supply lowered its 2026 outlook after second-quarter comparable sales fell 1.5%, partly due to drought and adverse weather that weakened demand for lawn care and outdoor products. Net sales rose more than 2% to $4.5 billion, but net income declined more than 16% to $360.7 million. The retailer now expects annual sales growth of 2.5% to 3.5%, flat-to-negative 1% comparable sales, and net income of no more than $990 million. Customers continue spending on pets, livestock, and farm needs, but are reducing discretionary purchases and combining shopping trips amid economic and fuel-cost pressures. Tractor Supply also plans to close about 75 underperforming Petsense stores, reduce planned Tractor Supply openings in 2027, and redirect savings toward last-mile delivery and store remodeling.
• US housing starts rose 19% month-over-month and increased 3.5% year-over-year in June, according to the US Census Bureau. The rise in starts was led by a 76.3% increase in multifamily project starts involving five or more units, a segment of the residential construction sector that can be volatile month-to-month. Multifamily starts were up 19.3% compared to June 2025. Single-family starts in June were down 0.2% from May and 3.2% compared to a year earlier. High mortgage rates and a glut of unsold new homes continue to put downward pressure on single-family building. High costs for land and materials are also hindering building activity. Building permits for single-family slipped 2.4% in June from May, marking the lowest level in 10 months. June's multifamily permits dropped 4.9% from the month before.
• Home builder confidence in the single-family market fell in July as builders remain concerned about housing affordability, higher construction costs, and elevated interest rates, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), dropped two points to 34 in July 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. July marked the 15th consecutive month the HMI remained below 40, a level not seen since the housing crisis in 2012. The survey also showed that 36% of builders reduced home prices in July to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from June. While the NAHB noted that the recent enactment of the 21st Century ROAD to Housing Act is a positive step in expanding the US housing supply, it added that more reforms are needed at the state and local levels.

Industry size & Structure

The average home center employs 490 workers, and generates about $233 million annually, while the average hardware store employs about 15 workers and generates $4 million annually.

• The home center and hardware store industry consists of about 10,800 companies that employ about 898,000 workers and generate about $208 billion annually.
• The home center sector is highly concentrated; the four largest firms account for over 98% of sector sales. The hardware store sector is more fragmented; the 50 largest firms account for 48% of sales.
• Large companies include Home Depot, Lowes, and Menards. Thousands of hardware stores operate independently under purchasing cooperative brand names, such as Do It Best, Ace, and True Value.