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Looming market saturation and the competition from mass merchandisers are causing problems for the DIY stores in the USA
Timber and builders’ merchants in the USA achieve an average margin of 24.9 per cent, according to a recent study issued by the National Retail Hardware Association. In comparison, Home Depot makes a margin of 31.8 per cent, though this figure was just 29.9 per cent four years ago.
The country report included in the current July/August 2004 issue of our specialist journal DIY in Europe, which deals with the US market in some detail, forecasts increasingly tough competition. The growing threat to the DIY stores comes not least from the mass merchandisers such as Wal-Mart, with their large DIY and garden departments. There are already signs of market saturation in the metropolitan markets, where the major operators are still continuing to open further outlets.
The country report included in the current July/August 2004 issue of our specialist journal DIY in Europe, which deals with the US market in some detail, forecasts increasingly tough competition. The growing threat to the DIY stores comes not least from the mass merchandisers such as Wal-Mart, with their large DIY and garden departments. There are already signs of market saturation in the metropolitan markets, where the major operators are still continuing to open further outlets.
