The hardware, building and garden supplies category of retail is expected to generate in excess of $18.2 billion in turnover this financial year, representing growth of 6.9 per cent.
Following a busy holiday trading period for the retail industry in general, the Australian economy, and retail in particular, is beginning to head in the right direction as attention turns to the second half of the 2015/16.
Since the start of the current financial year, hardware, building and garden supply businesses have benefited from gains in employment and house sales, both of which provided momentum for strong spending, leading into the Christmas period.
In particular, housing churn, which refers to the volume of established dwellings being bought and sold, has had a particularly strong influence on businesses operating within this particular category of retail.
Analysis conducted by the National Retail Association Research Division indicates that for every established home sold in Australia, an average of $3,145 is spent in hardware stores. It is believed that this increase in sales, is connected with the renovations, painting, landscaping and other improvements that home buyers make when first moving into a property.
While it is unlikely that the growth rate of 9.6 per cent, which was achieved in 2014/15 will be repeated, should current economic conditions continue in the coming months, the estimated growth of 6.9 percent should be an achievable figure for this particular category this financial year.
To further discuss how current economic conditions are influencing the hardware, building and gardens supplies category of retail, or other sectors of the industry, please contact the NRA Research Division on 1800 RETAIL (738 245).