Market Potential Report Info Sheet
Household All the people who occupy a single housing unit, regardless of their relationship, combine to represent a single household (note-this does not include populations that live in dorms, seasonal or recreational housing, vacancies, care facilities, jails, etc.). Median Household Income The “middle point” for the trade area’s household income (combined income of the whole house regardless of relationship). Half of the households will have an income above this point while half will be below the median. BENCHMARK: US Median Household is estimated to be $72, 414. Primary Trade Area The primary trade area is the geographic region that produces 60% to 80% of a store's sales. A range between 5000-15000 households is typical for most primary trade areas. Household Growth Trends The number of households for the US is estimated to have increased by 1.45% between the years 2020 and 2027. From 2022 to 2027 the number of U.S. Households is estimated to increase by 1.55%. For several years, urban areas have experienced a decline in the number of HHs due to the shift of families to more rural areas. Hardware Store Format The hardware store format is defined as stores that carry core hardlines, including fasteners, tools, plumbing, and electrical supplies and carry little to no lumber and building materials. Home Center Format Home Centers are hybrids of hardware stores and lumber yards. They carry full assortments of hardlines as well as commodity LBM goods in a minimum of 10,000 square feet of selling space (not including outdoor lumber areas). Home centers include all independents and big box chain stores. "Other Stores" Stores that are not a part of the format being analyzed but sell home improvement products. (i.e. Walmart, Target, Tractor Supply, etc.) Sales totals only include hard line items for home improvement products not the total store's sales. Lumberyard Format Stores that capture the majority of their sales from lumber and building materials and typically have sales floors less than 10,000 square feet, not including any outside lumber storage or outbuildings, only retail spaces dedicated to home improvement products. MPR & CMPR INFO
Expenditure Potential Measures how much consumers, both DIY and Pro, may spend in the specific store format on home improvement products for the trade area. It only measures the POTENTIAL, not the actual expenditure, breaking down the overall size of the market for the respective store format. It does not include data on competition or existing stores. Expenditure Potential Index This index grades the amount spent at the store format being analyzed compared to the US national average-the US national average being 100. Trade areas that score above 100 are above average and conversely below 100 are below average. Estimated Store Format Selling Area This estimate measures the total amount of square footage for the store format that the trade area can support. THIS DOES NOT TAKE INTO ACCOUNT ANY EXISTING STORES-this only measures what the market can support based on expenditure potential, trade area, and the NHPA Cost of Doing Business Study 2023 Estimates (per square foot) $279 Hardware Store Format $316 Home Center Format $2720 Lumberyard Format MPR & CMPR INFO Cont'd This report estimates how much consumers spend for home improvement products by department for the current year and a five-year projection for the trade area-both total and for the store format. The final column shows the Benchmark Index, based on household expenditures in the trade area, provides a grade per department for home improvement products. Just like the Estimated Hardware Store Expenditure Potential Index, grades above the national average of 100 show better potential than those below the national average. Consumer Spend by Dept. Hardware Store Format-80% DIY, 20% Pro/Contractor Home Center Format-55% DIY, 45% Pro/Contractor Lumberyard Format-30% DIY, 70% Pro/Contractor Consumer Spend DIY/PRO* *Figures provided by the NHPA 2022 Cost of Doing Business Study
Automotive Automotive Building Materials Building Materials Doors & Windows Electrical Electrical Electronics Hardware Hardware Housewares Housewares Cleaning Supplies Storage Lawn & Garden Lawn & Garden Farm & Ranch Outdoor Living Paint & Sundries Paint & Supplies Plumbing Plumbing Supplies HVAC Tools Hand Tools Power Tools & Accessories Various Other Items Office Supplies Toys & Games Holiday Decorations Food & Snacks Sporting Goods Store Supplies Clothing & Apparel Safety Pet Supplies MPR Department Category Do it Best Department Category Questions on a department or sub-category? Give us a ring!
The MPR and Competitive MPR uses data from the US Census, American Community Survey, as well as the Cost of Doing Business Study from the North American Hardware and Paint Association (NHPA). The Market Research Team at Do it Best partners with , the global leader in geographic information system(GIS) software, location intelligence and mapping. The team is able to build industry and location specific reports for our members using this tool. MPRs and CMPRS will be kept for one year for reference. Please retain a copy for your records for future comparison on market changes. Have questions or need further information or reporting? Please call the market research team! We are happy to help. Additional Notes Megan Millsap Market Research Supervisor 260-748-5645 [email protected] Victoria Clark Research Project Specialist 260-748-5471 [email protected]