Home Improvement Chains

The Home Improvement Chains industry includes retailers specializing in products and services for home repair, maintenance, renovation, and enhancement, catering to both DIY consumers and professional contractors. The industry purchases goods from manufacturers and wholesalers and sells them to end-users, often providing installation and repair services. The U.S. home improvement market has grown significantly, increasing by 70% over the last decade to reach an estimated $522.25 billion in 2023.

The Home Improvement Chains industry is influenced by economic indicators, consumer behavior, technological advancements, and regulatory changes. Strong economic conditions encourage homeowners to invest in their properties, while economic uncertainty can impact consumer spending. The DIY culture and a growing trend of outsourcing projects to professionals are significant. Consumers are increasingly price-conscious and influenced by online reviews, with a growing demand for personalized, customized, eco-friendly, and sustainable home solutions. Technology is reshaping the industry through AR, VR, AI, mobile engagement, and visual shopping solutions. Regulatory changes, such as new FCC rules and changes in building codes, can impact the industry.

The home improvement retail market is dominated by major players like The Home Depot Inc. and Lowe's Companies Inc., with intense competition. Home Depot leverages AI tools, while Lowe's focuses on strengthening its professional segment and digital transformation. Menards Inc. is another significant player. Other notable companies include Groupe Adeo SA, Kingfisher plc, S.A.C.I. Falabella, Wesfarmers Limited, and Floor & Decor Holdings, Inc. Companies compete on product quality, pricing, and customer service, with smaller-format chains gaining market share in smaller cities.

The home improvement market experienced a slight increase in 2024, with further growth projected for 2025. The total home improvement market expanded by 3.7% to $574.3 billion in 2024 and is projected to grow by an additional 3.4% in 2025. The global home improvement retail market is projected to reach an estimated $1 trillion by 2030, with a CAGR of 6% from 2023 to 2030. Despite some near-term adjustments, the long-term outlook remains positive, driven by factors such as an aging housing stock and technological advancements.

Investors in the Home Improvement Chains industry should consider economic sensitivity, as changes in economic conditions can impact spending. Intense market competition necessitates constant differentiation. Supply chain disruptions and commodity price volatility can lead to inventory issues and price fluctuations. New regulations can increase costs, and labor shortages can constrain the industry.