Hardware and Building Supplies Retailing in New Zealand - Industry Market Research Report

Confidence building: Rising downstream demand will scaffold revenue into a return to growth

Merchants in the Hardware and Building Supplies Retailing industry have contended with mixed, fluctuating and ultimately unfavourable trading conditions. Within this, the number of households in New Zealand has increased, which has expanded the industry's customer base. Further, capital expenditure on residential buildings and demand from house construction have both risen, signifying heightened DIY renovation activity. However, sharp declines in consumer sentiment have outweighed these gains. Industry revenue is expected to drop at an annualised 3.0% over the five years through 2022-23, to $7.4 billion. A slump in the consumer sentiment index and a deterioration in demand from house construction is anticipated to contribute to industry revenue falling 6.3% in 2022-23. Industry operators primarily retail hardware and building supplies such as tools, timber, paint, plumbing supplies and garden tools. These goods are purchased from wholesalers and sold directly to consumers and tradespeople in store or online. Operators that primarily retail garden supplies such as plants, seeds and soil are excluded from the industry, as are online-only players. 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.