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As U.S. economy goes, so goes hardlines sector

7/16/2007

Solid growth was seen across the board in 2006 for the wide range of businesses that fall under the umbrella of hardlines, according to Retailing Today’s Annual Industry Category Census.

Hardlines
2006 RETAIL SALES BY SUB-SEGMENT
%CHANGE OVER PREVIOUS YEAR, FIGURES IN BILLIONS
OFFICE SUPPLIES$333.003.10%
HARDWARE/DIY152.658.99
AUTOMOTIVES58.332.89
SPORTING GOODS52.123.52
TOYS22.300.45
TOTAL$618.40+4.41%

As has been the case in recent years, business classifications such as hardware and office supplies were the strongest performers, tending to mirror the performance of overall U.S. economic growth. However, all categories registered sales growth, even though in some cases it was modest.

Office SuppliesTop Volume Leaders (SALES IN MILLIONS)Top Specialists (SALES IN MILLIONS)ALL FIGURES FOR U.S. OPERATIONS ONLY, UNLESS OTHERWISE NOTED Source: Top Volume and Specialists data compiled from company reports, analysts’ estimates and Retailing Today research. (): Decline or loss e: estimate1Figures incl. U.S. and Int’l operations2Figures incl. U.S. and Canada operations
2006 RETAIL SALES BY SUB-SEGMENT
FIGURES IN BILLIONS, % CHANGE OVER PREVIOUS YEAR
Source: SHOPA and Retailing Today estimates
CHAIN20062005%CHG.
Staples$18,161$16,07912.95%
Office Depot15,01114,2795.13
OfficeMax8,9669,158(2.10)
Wal-Mart 6,179e 5,478e12.80
Costco 1,869e 1,647e13.48
CHAIN20062005%CHG.
Staples1$18,161$16,07912.95%
Office Depot215,01114,2795.13
OfficeMax8,9669,158(2.10)

Each of the major retail players in the hardware business, which includes categories such as lawn and garden, supplies, plumbing, electrical, paint and tools, reported solid growth, despite the rather dramatic fall in demand late in the year when the housing market tanked. Retailers such as The Home Depot and Lowe’s saw weak fourth-quarter sales as a result, but taken as a whole, 2006 was a great year for the lawn and garden category as trends related to outdoor living remained solidly in place. The category, already the largest segment of the hardware industry, increased 10.6% to $45.5 billion. Other segments related to the maintenance and upgrading of homes also saw double-digit growth. Electrical supplies increased nearly 13% to roughly $20 billion, while the painting category grew 10.6% to more than $16 billion.

Hardware/DIYTop Volume Leaders (SALES IN MILLIONS)Top Specialists (SALES IN MILLIONS)ALL FIGURES FOR U.S. OPERATIONS ONLY, UNLESS OTHERWISE NOTED Source: Top Volume and Specialists data compiled from company reports, analysts’ estimates and Retailing Today research. (): Decline or loss e: estimate1Figures for all operations in Retail Segment, U.S. and Int’l2Figures incl. Canadian operations
2006 RETAIL SALES BY SUB-SEGMENT
FIGURES IN BILLIONS, % CHANGE OVER PREVIOUS YEAR
Source: Home Improvement Research Institute
CHAIN20062005%CHG.
Home Depot1$79,027$77,0222.60%
Lowe’s246,92743,2438.52
Wal-Mart 19,762e 17,821e10.89
Sears/Kmart 12,111e 11,500e5.31
Menards7,8807,4555.70
CHAIN20062005%CHG.
Home Depot1$79,027$77,0222.60%
Lowe’s246,92743,2438.52
Menard’s 7,960e 7,450e6.85
McCoy’s 535e 535e0.00
Meek’s Buliding Centers4754750.00

While the red hot housing market that brought tremendous benefits to the hardware industry and home center operators has cooled, it doesn’t mean sales in the category will evaporate, as the ongoing cycle of home maintenance, remodeling and lifestyle trends such as outdoor living provide a solid base for continued growth amid a slower market for sales of new and existing homes.

AutomotivesTop Volume Leaders (SALES IN MILLIONS)
2006 RETAIL SALES BY SUB-SEGMENT
FIGURES IN BILLIONS, % CHANGE OVER PREVIOUS YEAR
Source: Automotive Aftermarket Industry Association
CHAIN20062005%CHG.
Wal-Mart $12,989e

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