Hardware and Building Supplies Retailing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: February 2024
ANZSIC G4231Revenue
$26.2bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
84,364
Businesses
5,846
Wages
$X.Xbn
Hardware and Building Supplies Retailing in Australia industry analysis
Companies in the Hardware and Building Supplies Retailing industry have shown resilience amid mixed trading conditions. Fluctuations in consumer sentiment and house construction activity have constrained demand for hardware and building supplies. Continued growth in the number of households and greater consumer interest in DIY renovations have supported industry demand. Industry revenue surged over the two years through 2020-21 thanks to increased consumer spending on hardware during the COVID-19 pandemic. Lockdowns caused a spike in home renovation activity as people spent more time at home and looked for ways to improve their work and living spaces. Industry revenue has been falling at an annualised 0.1% over the past five years and is expected to total $26.2 billion in 2023-24, while being on track to plunge by an estimated 6.4% as high inflation curbs industry demand.
Trends and Insights
- Volatile growth in discretionary incomes has constrained consumer spending, hurting the industry. Fluctuating house construction activity and a slump in capital expenditure on private dwellings have limited demand for hardware and building supplies.
- Hardware and building supplies retailers sell hand tools, power tools, timber, building supplies, gardening tools, paint, paint supplies and plumbing supplies. A shift towards DIY home improvement projects during the pandemic has altered demand for industry retailers.
- Hardware and building supplies retailers select store sites based on demographics and consumer demand. That’s why New South Wales, Victoria and Queensland account for the lion’s share of industry locations.
- Hardware retailers compete on product price, the range and quality of stock, customer service and store location. Competition is high for homogeneous products like nuts, screws, belts, hinges and locks.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.1 % over the past five years, to reach an estimated $26.2bn in 2024.
Trends and Insights
The COVID-19 pandemic has had mixed effects on the industry
- Hardware and building supplies retailers benefited from increased consumer demand during pandemic lockdowns, as many housebound individuals undertook small DIY renovation and redecorating projects.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Cutthroat competition is set to put smaller retailers' profit margins under pressure
- Industry profitability is on track to recover, but price competition from hardware chains with significant purchasing power, like Bunnings, is poised to limit profit margins for smaller retailers.
Biggest companies in the Hardware and Building Supplies Retailing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Wesfarmers | 11,359.1 | |
Metcash | 868.1 | |
Bowens Timber & Hardware | 623.1 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Tools and equipment, Timber and Building supplies. Tools and equipment is the largest segment of the Hardware and Building Supplies Retailing in Australia.
Trends and Insights
Tools and equipment sales have surged thanks to consumers' increased interest in DIY projects
- Common hand tools include hammers, screwdrivers, spanners, handsaws and socket sets.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Furniture Retailing in Australia
- Domestic Appliance Retailing in Australia
- Hardware Wholesaling in Australia
Complementors
- Garden Supplies Retailing in Australia
International industries
- Home Improvement Stores in the US
- Paint Stores in the US
- Hardware Stores in the US
- Lumber & Building Material Stores in the US
- BBQ & Outdoor Cooking Stores in the US
Table of Contents
About this industry
Industry definition
Industry operators retail hardware and building supplies to households and tradespeople. These retailers stock a range of goods including hardware, timber, tools, paint, plumbing supplies and garden tools. The industry excludes companies that primarily retail garden supplies such as plants, seeds and soil.
What's included in this industry?
TimberTools and equipmentBuilding suppliesGardening toolsPaint and paint suppliesPlumbing suppliesNails, screws, rivets and other fastenersInterior and exterior lighting and electrical componentsHousewaresCompanies
WesfarmersMetcashBowens Timber & HardwarePurchase this report to view all 3 major companies in this industry.
Related Terms
POINT OF SALE (POS)WHOLESALE BYPASSBIG-BOX STORESDIYCLICK-AND-COLLECTIndustry Code
ANZSIC 4231 - Hardware and Building Supplies Retailing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Volatile growth in discretionary incomes has constrained consumer spending, hurting the industry. Fluctuating house construction activity and a slump in capital expenditure o...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Hardware and building supplies retailers sell hand tools, power tools, timber, building supplies, gardening tools, paint, paint supplies and plumbing supplies. A shift toward...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Hardware and building supplies retailers select store sites based on demographics and consumer demand. That’s why New South Wales, Victoria and Queensland account for the lio...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Hardware retailers compete on product price, the range and quality of stock, customer service and store location. Competition is high for homogeneous products like nuts, scre...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry has a low market share concentration. Aside from Bunnings, many smaller scale independent businesses operate in the Hardware and Building Supplies Retailing indu...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Wesfarmers's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Metcash's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bowens Timber & Hardware's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Wesfarmers, and factors influencing its performance in the industry
- Description and key data for Metcash, and factors influencing its performance in the industry
- Description and key data for Bowens Timber & Hardware, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Hardware Australia is the leading industry association, providing professional advisory services, education, training, information and research. It advocates for legislative ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Mounting price-based competition has forced smaller retailers to trim their profit margins to remain competitive. The ongoing effects of pandemic-related supply chain disrupt...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hardware and Building Supplies Retailing industry in Australia in 2024?
The market size of the Hardware and Building Supplies Retailing industry in Australia is $26.2bn in 2024.
How many businesses are there in the Hardware and Building Supplies Retailing in Australia industry in 2024?
There are 5,846 businesses in the Hardware and Building Supplies Retailing industry in Australia, which has grown at a CAGR of 1.9 % between 2019 and 2024.
Has the Hardware and Building Supplies Retailing industry in Australia grown or declined over the past 5 years?
The market size of the Hardware and Building Supplies Retailing industry in Australia has been declining at a CAGR of 0.1 % between 2019 and 2024.
What is the forecast growth of the Hardware and Building Supplies Retailing industry in Australia over the next 5 years?
Over the next five years, the Hardware and Building Supplies Retailing industry in Australia is expected to grow.
What are the biggest companies in the Hardware and Building Supplies Retailing market in Australia?
The biggest companies operating in the Hardware and Building Supplies Retailing market in Australia are Wesfarmers, Metcash and Bowens Timber & Hardware
What does the Hardware and Building Supplies Retailing in Australia include?
Timber and Tools and equipment are part of the Hardware and Building Supplies Retailing industry.
Which companies have the highest market share in the Hardware and Building Supplies Retailing in Australia?
The company holding the most market share in Australia is Wesfarmers.
How competitive is the Hardware and Building Supplies Retailing industry in Australia?
The level of competition is moderate and increasing in the Hardware and Building Supplies Retailing industry in Australia.
