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.

Sep 25, 2026 - Remodeling Input Costs Accelerate

• The National Association of Home Builders (NAHB) found that input costs for residential remodelers accelerated in the second quarter of 2026. Its Remodeling Input Price Index increased 6.6% from a year earlier, up from a 3.9% annual increase in the first quarter, marking 11 consecutive quarters of rising costs. Higher material costs can create mixed conditions for home centers and hardware stores, supporting higher dollar sales while pressuring unit demand and customers' project budgets. Persistent inflation could also prompt homeowners and contractors to compare prices more closely, substitute lower-cost products, or phase remodeling projects over longer periods. Remodeling remains supported by an aging housing stock, aging-in-place trends, and high housing wealth, which could help sustain demand for repair, maintenance, and improvement products despite cost pressures.
• Remodeling remained one of the stronger residential sectors in the American Institute of Architects' second-quarter Home Design Trends Survey. The share of respondents reporting improving conditions minus those reporting weakening conditions was 38% for additions and alterations, up from 28% a year earlier, while kitchen and bath remodeling increased to 34% from 26%. Residential architecture firms also reported project backlogs averaging about 5.1 months, up from 4.9 months in Q2 2025. Improving design activity for additions, alterations, kitchens, and baths could support future sales at home centers and hardware stores as projects move into the construction phase. Retailers may see stronger demand for lumber, tools, plumbing and electrical supplies, fixtures, paint, hardware, and other remodeling materials.
• On September 24, the average rate for a 30-year fixed-rate mortgage hit 7.03%, according to Freddie Mac. Higher borrowing costs can delay purchases by reducing buying power, while elevated home prices and limited affordability have already constrained the broader housing market. Home centers and hardware stores could see weaker demand tied to home sales because moving often triggers spending on paint, hardware, fixtures, repairs, and renovations. However, owners who remain in their current homes longer may redirect some of their spending toward maintenance and improvements rather than moving.
• Canada's Department of Finance says new counter-tariffs on US products took effect September 8, covering $27.6 billion in imports and imposing rates of 15%, 25%, or 50% depending on the product. The list includes several categories relevant to home centers and hardware stores, including certain lumber at 25%, plywood and laminated veneer lumber at 50%, hand tools at rates of up to 50%, and numerous floor coverings and gas-fueled cooking appliances at 25% or 50%. US home centers and hardware retailers with Canadian operations or cross-border sales could face weaker demand for affected US-made merchandise as tariffs raise prices in Canada. The measures could also prompt suppliers to redirect products toward the US market, potentially changing availability, purchasing opportunities, and competitive pricing for building materials, tools, flooring, and other home improvement products.

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.