Hardware and Building Supplies Retailing in Australia - Industry Research Report

Tools down: High inflation is curbing demand from all markets as a pandemic DIY boom wears off

Companies in the Hardware and Building Supplies Retailing industry have shown resilience amid mixed trading conditions. Fluctuations in consumer sentiment and house construction activity have constrained demand for hardware and building supplies. Continued growth in the number of households and greater consumer interest in DIY renovations have supported industry demand. Industry revenue surged over the two years through 2020-21 thanks to increased consumer spending on hardware during the COVID-19 pandemic. Lockdowns caused a spike in home renovation activity as people spent more time at home and looked for ways to improve their work and living spaces. Industry revenue has been falling at an annualised 0.4% over the past five years and is expected to total $25.9 billion in 2023-24, when revenue will plunge by an estimated 7.8% as high inflation curbs industry demand.

Industry operators retail hardware and building supplies to households and tradespeople. These retailers stock a range of goods including hardware, timber, tools, paint, plumbing supplies and garden tools. The industry excludes companies that primarily retail garden supplies such as plants, seeds and soil.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.