retail diy market measure 2011

8/2/2019 Retail DIY Market Measure 2011

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2/20November 2011 Hardware Retailing 29

By Dan Tratensek, [email protected]

Yet when the kitchen door

sgs p, all sv as s a

ay s f lasaga f

abl sx a yu s a sll

sg.

tas sam f

flg all av g

ga m vy.

w g u abl, u

s a s ag

f umplym mpv,

ag f ss bu ba

a ag f uss sa

sllgt l m sg

a a .

i 2009, sa m

mpvm ma bm u

sm g $260 bll

ag a a a fv-ya l. S,

gs ul av g

b 2010. A y .

i 2010, m mpvm

usy ps sals f $277.7 bll

ag u smas. ts p-

s a as usy sals f

abu 4.7 p ya v ya.

A Mixed Blessing

wl may sm a gv

gvm mu f

g ayg g s ays,

sms a ax vs ff

ms ug

fs sval ms f 2010 au-

ally lp ful sals m

mpvm usy.

Y kw ha fig y g wh y

ar siig i a rsara waiig fr

h srvr brig yr driks ad sh

js ks assig by yr ab.You check your

watch, you clear your throat and you think to

yourself the drinks have to get here any minute,Ive been waiting so long.

ImrvmRai Hm

Mark prfi

www.nrha.org

Despite Limited Growth, Industry

Still Waiting for Recovery


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Ufualy, gvms p

a ax vs ul gv

usg ma a pus sa fal

m fu, a af vs

xp, usg u s

mal lvls ugu ms f

ma f ya.

t g s f m mpv-

m usy ag las alf

f 2010, v, as a usy

as aga gg. Af

suv yas f ls, m

mpvm sals U.S. au-

ally up aga.

hag 2011, aga

l lggly a a

a ug uslvsu s

av b mg u x.

t g s s, g u s.

t ba s, as g.

Las ya, p a 2011 sals

ul as $294.7 bll. w fl

a s sg as ul b ful

by a bu usg ma as

affably lvls a v

as-sa buys ul a ava-

ag f l ps.

A m, u smas f a usg

bu a m bus m

vy al a sm

aalyss a p bu

f a p up usg ma

ul aus mvm ma.

By , a ll 2011 a

av all alz a vy

usg s sll ls fu

a. Bu as ly ba s

a amp usy g 2011.

h a a f fas a l

usy s ya:

Unemployment. dsp

lvls f usg affably a

ls f mgag as s

a qualfy f a la f yu

av a jb. A yu a

su fa a umply-

m as a gavly mpa

v vuals av jbs as

y as a sp v as

m ul.

Lending. i a f faal

ss a f yas ag bas av

aly g lg s-

s. wl ms mgag bs

ll ll yu a m las a sll

u b a, y qu

la a a g

paym. i s s pa f s

qum a s pg may

yug sums u f ma.

tg lg ss av als

a a mpa bussss a av

s bas ls.

NRHA and Hardware Retailing take

a large number of factors into account

when determining our overall sales

estimates for the industry.

We use a formula that incorporates

information from NRHAs Annual Cost

of Doing Business Study, direct retailer

research, the U.S. Department of

Commerce NAICS 444 sales reports and

information from other research outlets as

the basis for our calculations.

We then weight this information

against company reports from the

industrys publicly traded corporations,

wholesaler sales figures and additional

data from retail and industry partners.

All of this data is combined using a

formula to determine our industry sales

estimates and forecasts.

NRHA and Hardware Retailings

industry estimates consider sales from

all retailers whose primary business is

selling home improvement products.

We do not include sales from operations

that do not utilize a retail sales model or

service only other companies.

Our estimates include sales through

the industrys hardware stores, home

centers, big-box outlets and retail

lumberyards.

Idsry Sas Mhdgy

$200

$250

$300

$350

$400

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

$272.

1

$300.

6

$300.

3

$29

4.

5

$265.

2*

$277.

7

$284.1

$29

4.

9

$307.

1$320.

6$336.

3

*Number revised downward from 2010 reports.

(Sales in Billions)

ta Rai Sas ByHm Imrvm Rairs

CAG 2005-2010 = 0.41%

CAG 2010-2015 = 3.9%CAG-Compound Annual Growth

th IdsrysAa Rr


4/20November 2011 Hardware Retailing 3www.nrha.org

ts as aus sm als l

ba xpas plas, ag

pu ls a busss mvs

a ul av lp pm sals.

Governmental Gridlock. if yu av

, s a b f amy

wasg s ays. t plal

ps a b b ss f

asl sm b m

pg s a y

slvg as m ubls.

Mal 2011 sa a

pus b f faulg s

las. n f s s f

amg sums busss s

s as gg mally

us au l

a ug b fa-

ally sg.

Changing Habits

S, a av suss all

fas a su g 2011, yu

may b g, ay bg

sps? t s as s ys.

wl m u a

ay s s gav, sums

a sll spg my m

mpvm a a a f ps

abu abs av ag:

Home repair and maintenance is still

a primary catalyst. w may ppl

sg fg mvg a

m, y a lf avg pa

a maa xsg ms. wl

s u a m s ypally sp

m mpvm puass au

sal f a m, a s ma

ppl a spg fx ls,

pa ms, ap fls a m.

The rental market. ts s aa

f usg usy a s au-

ally bus s ays. As m yug

ppl lay puass famls f

mslvs lg ma

f buyg a mal s ly

p. ts sug al avy

mas sals f pus ppy

s as al ls uv.

Niche areas. dsp

my, Amas sll f ays

sp my bbs a

luxus a may f s ms a

sl ug m mpvm a-

ls. ta f sa bm v

s p suppls, fam a a,

la a ga a ug a

us pus.

ts sum spg sul

slg gas 2011 f m

mpvm usy. A l sm

f g ug fs

quas f ya sm ms,

s a s ya v ya

avas mpg agas

ax-v ful sals f 2010.

As a sul, a apag sals

2011 g a $284.1 bll, ll

s f u p fm las ya

bu sll a as f abu 2.3 p

v 2010s als.

What Lies Ahead?

ta lavs us qus f

a ls aa f usy x

ya a mvg x sval

yas. n lg a usy as

jus l a usy a p

masu g. n, a ya

pg fuu ll play u s

mu m fful.

w, alg ms aalyss,

sll blv usg ma s s f

a bu a a bu us,

m mpvm usy ll

xp a sg lf. t al qus

s, ll usg bu ba?

rg , nrhA fls a 2012 ll

s maly sg g

usy bu bggs lap fa ll

u la 2012 2013 m fam.

By s m, a l f ssus ll bg

sl u plally a as

a sul f l-ya pls, a

amsa a gu-s pull

uy u f faal mass,

a lly s sm fm f jb a

usg v pgams a .

o umplym bgs mg

, a paulaly f a -

vs lp m buys ba

abl, as sums sul sa

g ug usg vy a

su sul amp up.

Bu f , a sll sg ,

sag a , g

s ll

fally av.

To keep perspective on how other

analysts see the home improvement

retail industry developing over the

next several years, to the left are

the predictions from the IHS Global

Insights and the Home Improvement

Research Institute (HIRI).

Source: IHS Global Insights/HIRI

Ahr Viw

2011 $270 Bil.

$250 $300 $350 $400

2012 $285.8 Bil.

2013 $301.6 Bil.

2014 $322.7 Bil.

2015 $341.1 Bil.


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Hardware Retailing www.nrha.org

Mark Shar prfi

t 10 Hardwar, Hm Crad lmbryard Chais

Sales(as % f al

usy)

No. of Stores(as % f al

usy)

2006 55.6% 13.0%

2007 50.9% 13.8%

2008 48.3% 13.7%

2009 48.2% 13.4%

2010 47.2% 14.4%

2006-2010Percentage Point Change

-8.4% 1.4%

Rakig t 10 Hm Imrvm Chais

2010 Sales( blls)

Stores at End of 2010 Stores as of Fall 2011

Hm D

Atlanta $68.0 2,248 2,242

lwsMooresville, N.C.

$49.0 1,749 1,753

ABC SyBeloit, Wis.

$4.1 457 460

pr-Bid HdigsDenver

$3.5 470 450

Mard Ic.Eau Claire, Wis.

$2.2 240 260

84 lmbr

Eighty Four, Pa.

$1.5 281 265

Sck Bidig SyRaleigh, N.C.

$0.9 57 57

Sars Hardwar SrsHoffman Estates, Ill.

$0.7 106 94

Shrad lmbrKansas City, Mo.

$0.7 55 55

orchard Sy HardwarSan Jose, Calif.

$0.7 88 89

Source: Company Reports and Hardware Retailing Estimates

Grwh prfi

t 10 Chais

Net Sales( blls)

No. of Stores

2006 $167.1 5,371

2007 $152.8 5,672

2008 $142.1 5,532

2009 $130.7 5,318

2010 $131.3 5,725

2006-2010Compound Annual

Growth Rate

-5.8% 1.6%

t 10 Rss


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December 2010

Orgill fm a pasp

caaas casl Bulg cs Gup

a bga svg als ugu

uy. By f 2011, ogll

plas av all pus bm

caaa mpla ms f pa-

agg a laguags.

January 2011

True Value au s mpa-

abl-s sals up 0.3 p

f 2010. t mpay als p

a s -mm avs

sussful, g a m a

70 p f l puass

a spp tu Valu ss f

usms p up.

Lowes Cos. la ff 1,700 ml

maags a a a u-

sas f uly, pa-m sals saff

s. t mpay f

us f ml-maagm jbs

a lma s b asssa

s maag a s maag.

February 2011

Lowes fm ps Lay S

au ul Ju 2,

af 42 yas mpay.

U.S. fas u-pu cs

maufaus by m a 40 p

sp lsg fas a ls mau-

faug jbs.

Lowes ps a s mpaabl-

s sals as 1.1 p a

s ags up 39 p

fu qua f 2010. Sals

as 3.1 p $10.5 bll,

up fm $10.2 bll fu

qua 2009.

Walmart p 2010 fu

qua sals f 2010 pp

$405 bll, a as f 1 p

v fsal ya 2009. walma U.S.

mpaabl-s sals f fu

qua bl gua. n sals

f fu qua f fsal ya

2010 $112.8 bll, a as f

4.6 p fm $107.9 bll

fu qua f 2009.

Home Depot p sals f

$15.1 bll f fu qua

f fsal 2010, a 3.8 p as

fm fu qua f fsal 2009.

cmpaabl-s sals up 3.9

p, a mp-sals f U.S. ss

up 4.8 p.

March 2011

Blish-Mize lba s 140 a-

vsay a s spg buyg ma

ovla Pa, ka. t als

sbu as fu 1871 by

bs--la a s sll famly

a pa ay.

Ace Hardware p s ma-

s sals mpaabl ms

ss as $40.6 mll

fu qua f 2010, mpa

2009. Fu qua al vus

$859.3 mll, a as f $59

mll 7.4 p fm 2009.

April 2011

Walmart bga bulg s fs

expss sa small fma s

s lss a - sz f

a avag walma Sup

Gy, A., abu 20 mls sus

f walmas Bvll aqua-

s. t expss s masu

14,400-squa-f.

Handy Hardwares fs qua

suls s vall sals as

4.1 p mpa sam m

2010. t mpay als as

a mpu pag sysm

ug fs qua f 2011.

May 2011

Home Hardware Centers a tyal

Avss a a al pa-

s a maagm mpay,

cal n ral Gup (cnrG),

LLc. cnrG s jly by

mpas a ll ally a

pa hm haa c

a l maagm a

pas suu ll sv as a

plafm f fuu al g. cnrG

sa p xpa hm haa

c al pas by

Msssspp a Lusaa.

Industry

Yar i Rviw



Ace Hardware p a s fs

qua mas sals mpaabl

ms ss as 2.2 p

mpa 2010 a al vus

as 2.8 p $23.4 mll.

Lowes Cos. p s mpaabl-

s sals as 3.3 p a

sals as 1.6 p $12.2

bll fm $12.4 bll ug

fs qua.

Target au mpaabl-s

sals as 2 p ug

fs qua l walmas mp-s

sals pp 1.1 p. hv,

walmas fs qua sals up

1.1 p a tags sals as

2.8 p.

Home Depot p s vall mpa-

abl-s sals as 0.6 p

a U.S. mpaabl-s sals

0.7 p. Sals f fs qua

as 0.2 p $16.8 bll.

RONA au s fs qua

sam-s sals as 12.6 p

a al sals as 4 p

$38.7 mll; m as

$19.8 mll.

The Merit Group, s bus-

ss as Laas a Fv Sa, fl

gaz u cap 11 f U.S.

Baupy c. t mpay ba

a mmm f a $55 mll b

pssss faly fm s s l,

rgs Ba, u pas

ug gaza pss.

Home Depot u a a-

l v s ss a a b

us as a p, al-al a a

mbl as gs. hm dps Fs

P a b us ly upa

vy us, bu als as

usms quss a pss

sals asas u avg g

up gss.

The National Hardware Show sa

a 4 p as aa

s ya, p f 20 p

as 2010.

June 2011

Walmart ls s appal f ms f a

$187.6 mll v f Psylvaa

uly s aus ls

lags al f yg m mal

a s bas.

A suvy s m als a

fallg vm gaz m. of 129

als suvy, 94.5 p sa y

vmz by gaz mals

pas ya. 84.8 p sa

pblm as ly s pas

yas.


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July 2011

The Federal Reserve Board s

ap s-all sp fs a 21 s,

up fm 12- ap pps

la las ya. ts umb s sll

fm pvus avag b a

asa s f 44 s.

August 2011

True Value p mp-s

sals 0.1 p fs sx

ms f 2011. rvu as 0.4

p $529.5 mll s

qua a vall vu f fs

alf f ya as $977.3 mll, a

as f 2.2 p mpa

sam m a ya ag.

Lowes Cos. p mpaabl-

s sals f s qua

as 0.3 p a as

1.7 p f fs alf f 2011.

Sals f qua as 1.3

p $14.5 bll, up fm $14.4

bll s qua f 2010.

t mpay als au a

ll buy ba up $5 bll f s

mm s a abuply ls

sv ss fllg las f s

s qua faal p.

Sears s qua fa-

al suls s al vus

as $125 mll $10.3 bll

a vall ms mpaabl-s

sals as 0.7 p. Sas

mpaabl-ss sals as 1.2

p a kmas mpaabl-s

sals fla. Sas caaa mpa-

abl-s sals pp 5.8 p.

Ace Hardware p a 0.6 p

mpaabl-ss sals as

s qua mpa pvus

ya. rvu as $5.6 mll

a al f $1.021 blla 0.5 p

jump fm sam qua 2010.

Walmart p mpaabl U.S.

sals 0.9 p s

qua. n sals f s qua

$108.6 bll, up 5.5 p fm

sam p las ya.

The Home Depot p s

quas sals s 4.2 p fm

s qua f fsal 2010 $20.2

bll. cmpaabl-s sals

psv 4.3 p, a mp-sals f

U.S. ss psv 3.5 p.

Do it Best Corp. xpa pa-

s Suas Asa sf

pg f fs f fu Pgs d

Bs hm cs. t fs s

p Aug. 4 Jaaa, isa.

September 2011

Ace Hardware as s

cafsma pu ffgs m

a 1,050 pus m a 1,000

A ss a. A fs sa

sllg cafsma-ba pus

2010 a m a 1,200 f s ss

ll ay a full l assm by

f 2011.

October 2011

Orchard Supply Hardware bam

p fm fm pa

mpay Sas hlgs cp. a

au plas bul 30 40

ss ugu calfa

mg yas.

Ace Hardwareb gu

Suffl, Va., s

336,000-squa-f imp

r-dsbu c (rdc) ll b

bul. csu s sul f

mpl May 1, 2012.

Industry

Yar i Rviw


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Rai Srprfrmac

By ms ay masu, 2010

as a ba ya f

m mpvm usy.

o g la, v,

as a as a g gap

b sg pfms a

als-as.

Ass all s fmas

m mpvm usy gap

b g- pfms a

avag pfms

2010. ts sms suggs a bs-

-lass als a maagg sal

busss fm avag ss.

ts sms av b

xaba by m -

s uy bu als appas

b a daa pss a as

b uflg m mpvm

alg ag ba ll bf

as m s.

Smply pu, bs f bs

u upfm magal

ss a a mu ga a. ts

suggss a ypal m

mpvm s s jus

mpg agas lal bg bx

f busss. isa, a avag

aa s, m

lumbya als as b gly

abu p

ss av b s ls,

as fl a a m mpllg

valu pps sums.

L may busss sas,

ug faal ms s-

saly a pblms f mpas

bu y f bg xsg pb-

lms la fus.

wl vg umbs

fllg pags s xmly

mpa a s fgus

a v fm n Ama

ral haa Assas Cost

Gap Widens Between High-Performanceand Average Retailers

of Doing Business (codB) suy.

t 2011 codB s a mpla f

pfma umbs f aa

ss, m s a lumbyas

fm 2010.

ea ya s p as

umbs fm a ff sampl gup

f ss. ta mas vall sals

fgus ll vay ly bas

sps. ts ya, av g-

lg sm f sass fm ss

a papa b f las

sus gv a mp-s mpas

apppa.

Hardware Stores

i 2010, avag aa s

xp a l f g. i

fa avag s papag

u codB suy p sals f $1.29

mll. wl suy sp

sampl ags fm ya ya, fm

a vall sal s pspv,

s as a mba f

sum suy a l

usg avy ( b a

xsg m sals) u p

usy g ugu

2010. t avag usm u a

typal haa S as 80,000,

s ss sally.

o f ma s a

mg s a sals plaza f

haa Ss papag

ms codB suy, as las

typal a hg-Pf Ss. t

sals gap b typal a hg-

Pf haa Ss 2010,

mpa pvus yas. i ms

suy, hg-Pf haa

S lps $2 mll sals ma

($2.01 mll) f fs m s

nrhA bga mplg suy. Mu

f s a b abu s ss

ably aa aly a 50 p

lag usm bas (117,908 vs. 80,000)

a typal haa Ss.

of 300 mp-s als (p-

sg 426 ss) papa

b las nrhA codB sus,

ya-v-ya (09-10) sals a

usm us slgly (1.8

p f b).

Gss Mags a b typal a

hg-Pf haa S sg

2010 as coGS l say fm a

sal mpas. Gss Mag Af

rba a Avag haa S

as 42.1 p f sals, l hg-

Pf haa Ss sa 43 p.

B Avag a hg-Pf als

als maxmz puas bas

ugu 2010 mpa 2009 lvls.

F mp-s gup, v,

Gss Mag (af ba) a s v

ya v ya, fallg fm 42.8 p

40.3 p f sals, as coGS as

m a 3.6 pag ps.

tal opag expss s g-

ally spaa xss b

typal a hg-Pf haa

Ss, a 2010 as xp,

as typal haa S sa

tal opag expss f 41 p

mpa 37.6 p f hg-

Pf haa Ss. t as

xps agy a s u,

jus a ll b a a ll b ,

a up a ffal f

3.4 pag ps. tal opag

expss als m a

2 pag ps f mp-s

gup ya v ya

i 2010, typal haa S

sa 2.2 s p bm l f

vy lla sals, as -

al typal haa S

las yas suy. hg-Pf haa



ss sa 6.2 s fall bm

l f vy lla sals, flg

ably buy b, ma g

mags fm usms a l

xpss m ffvly.

F mp-s gup, bm l

pfably as fm 1.6 p f

sals 2.1 p ya v ya.

Home Centers

Sals a typal hm c

2010 $3.02 mll, fm

a vall sal pspv as

slgly fm 2009 lvls. L

haa Ss suy, af

ffs f ss a usg

ss u play u 2010. t

avag usm u f 85,500 a

typal hm c 2010 u

fall mpa pvus yas as

sums pu ff m mlg pj-

s a as u a

f p g.

Als l haa Ss

suy, v, a ma s

hm c sampl as a sals

plaza b typal a hg-

Pf ss. t sals gap b

typal a hg-Pf hm c

amaally 2010, mpa

pvus yas. Aga, pg

m a sampl sp gup

ags fm ya ya, abu

alf f sp gup pa-

pag ya v ya, hg-Pf hm

cs p $5.63 mll sals

f fsal ya 2010, m a $2.5

mll a typal hm c.

L hg-Pf haa Ss, mu

f s a b abu s ss

ably aa m usms (110,900

vs. 85,500 a typal hm c).

of 52 mp-s hm c

als (psg 205 ss)

papa b las nrhA

cs f dg Busss Sus, ya-v-

ya sals as 7.3 p l

usm us as 15 p.

Gss Mags a b typal

a hg-Pf hm c

2011 Suy l say fm a sal

mpas. Gss Mag Af rba

a Avag hm c as 32.7

p f sals, l hg-Pf hm

cs a Gss Mag f 30.8

p, flg slgly g

p sum usm ba

(47 p p vs. 42 p sum

sals a hg-Pf hm cs,

typal hm c a 42 p

p vs. 47 p sum).

F mp-s hm c gup,

Gss Mag (af ba) as

by a alf a pag p, as coGS

as by aly sam amu.

exps l as a y ff

b typal a hg-Pf hm

cs 2010 quag a ff-

f m a 5 pag ps.

t typal hm c sa tal

opag expss f 31.7 p

mpa 26.6 p f hg-Pf

hm c. A p a a alf savgs

payll xpssa alf a p

upay xpsb vall

xps maagm bu

ff hg-Pf hm cs.

tal opag expss alms

a p g f mp-s hm

c gup ya v ya

i 2010, typal hm c sa

a bm l f 2.1 p f sals, l

hg-Pf hm c ss sa a

bm l f 5.3 p f sals. F

mp-s gup, bm l pfably

as fm 2.2 p f sals 2.5

p ya v ya. Bu vall, g

lvls f pfably u lu

ms hm c pas ays

u-pfmg my.

LBM Outlets

Sals a typal LBM oul

2011 $2.22 mll as typal

LBM oul suggl ba v. t

sals plaza b typal a

hg-Pf ss as als v

s agy, as sals a hg-Pf LBM

ouls $4.43 mll, ubl a

a a typal ss, bu sll l a

sal hg-Pf LBM ouls

pvus codB sus. t suggl f

s ss as lusv usm.

Jus 21,500 usms vs typal

LBM oul suy vsus 25,900

f hg-Pf LBM ouls. Bu aga,

v s g lvl as aly

11,000 usms fm hg-Pf

gup las yas suy as as

usg s u. o f y

ffs, v, as hg-Pf

gups ably maxmz a asa-

, as sals p usm a hg-Pf

LBM ouls as $171 vs. $103

avag asa a ypal ss. ts

ff als fl ff

usm maup f ypal s (68

p p vs. 22 p sum)

a hg-Pf ss (80 p p, 12

p sum).

F mp-s gup, sals

as 8.8 p fm 2009 2010.

t ff Gss Mags a

typal a hg-Pf LBM ouls

als fl slgly ff fus

f typal a hg-Pf ss. Gss

Mag (af ba) a typal LBM

oul as 26.7 p f sals, l

gss mag a hg-Pf LBM ouls

as 22.2 p. obvusly, hg-Pf

ss a m ga sllg g-

ug mmy LBM pus,

as als fl b ivy

tuv a Sals ivy ff-

s b gups.

F mp-s gup, v,

Gss Mag (af ba) a s v

ya v ya, fallg fm 42.8 p

40.3 p f sals, as coGS as

m a 3.6 pag ps.

i 2010, typal LBM oul baly

ma a pf, g a bm l f

.9 p f sals. ev hg-Pf

upas ly bug 2.7 p f

sals bm l. Ya v ya,

pfably as fm -0.6 p

0.9 p f sals, fu

llusa fful s u a

pf yu pmay fus s sllg

lumb a bulg maals ps.


12/20

2011

AnnuAl

Repo

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Hardware Retailing2

Nove

mber2011

www.nrha.org

Rai Srprfrmac

Csmr C

0%

20%

40%

60%

80%

100%

Q42010

Q12011

Q22011

Q32011

29.4%

33.2%

41.3%

33.2%

21.1%

41.0%45.5%

52.5%

Respondents saying customer count was up over previous period.

Respondents saying customer count was down over previous period.

Source: NRHA/Hardware Retailing Confidence Panel

6

0%

60%

60 rc f h

cfidc a

fs csmrs

ar mr mivad

by convenience

than they were

20 years ago.

Sas Aciviy

0%

20%

40%

60%

80%

100%

Q42010

Q12011

Q22011

Q32011

0%

20%

40%

60%

80%

100%

Q42010

Q12011

Q22011

Q32011

Respondents saying sales were up in period over previous year.

Respondents saying sales were down in period over previous year.

Respondents saying average transactionsize was up over previous period.

Respondents saying average transactionsize was down over previous period.

37.5%

50.7%

25.6%34.4%

25.8%20.1%

43.3%58.5%

68.0%

39.5%

36.2%33.6%

18.2%

49.8%

57.8%53.0%

trasaci Siz



80

%80 rc f h

cfidc a

fs csmrs ar

mr ifcd

by the media (TV,Internet, Radio) than

they were in the last

20 years.

60 rc f hcfidc a

fs csmrs

ar mr mivad

by price than they

were 20 years ago.

nRHA Rai Cfidc paPanel consists of retailers across the U.S. and Canada


13/20

2011

AnnuAl

Repo

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Hardware Retailing4

Nove

mber2011

www.nrha.org

Fiacia prfi f Hardwar Srs

oraig prfi 2006 2007 2008 2009 2010

Avg. Size Selling Area (sq. ft.) 8,000 9,100 9,097 9,000 8,760

Total Sales $1,157,356 $1,893,907 $1,425,296 $1,430,459 $1,330,152

Sales per Store $1,150,766 $1,421,740 $1,415,739 $1,413,209 $1,287,986

Total Asset Investment $573,701 $664,480 $809,795 $698,504* $687,707

Total Inventory $368,000 $436,800 $509,432 $450,000 $443,571

prdciviy prfi pr ui 2006 2007 2008 2009 2010

Sales per Square Feet of Selling Area $145 $156 $156 $157 $147

Inventory per Square Feet of Selling Area $46 $48 $56 $50 $51

Net Sales to Total Assets 2.0x 2.9x 1.8x 2.0x 1.9x

Net Sales to Total Inventory 3.1x 4.3x 2.8x 3.1x 3.0x

Total Sales per Employee $136,160 $135,404 $149,025 $148,759 $143,110

Avg. Size of Transaction $15 $16 $17 $17 $16

prfiabiiy prfi 2006 2007 2008 2009 2010

Gross Margin 39.7% 39.4% 41% 39.7% 40.6%

Net Profit (Before Taxes) to Net Sales 2.9% 2.5% 2.6% 2.2% 2.2%

Gross Margin Return on Inventory 130% 133.3% 162.2% 128.5% 122.2%

Return on Net Worth (Before Taxes) 10.1% 8.5% 8.6% 8.3% 7.8%

Source: North American Retail Hardware Association. Figures based on responses to annual Cost of Doing Business Study.

*Average of five years historical assets due to influence of response data

Icm Sam 2010

Net Sales 100%

Cost of Goods Sold 59.4%

Gross Margin 40.6%

Patronage Dividend/Purchase Rebate 1.5%

Gross Margin Plus Purchase Rebate 42.1%

Total Expenses 41%

Gross Operating Profit 1.1%

Other Income 1.1%

Net Profit (Before Taxes) 2.2%

Baac Sh 2010

Current Assets 76.8%

Fixed Assets 23.2%

Total Assets 100%

Current Liabilities 15.2%

Long-Term Liabilities 32.1%

Total Liabilities 47.3%

Net Worth 52.7%

Total Liabilities and Net Worth 100%

Source: North American Retail Hardware Association. Figures based on responses

to annual Cost of Doing Business Study.

Fiaciaprfis



Fiacia prfi f Hm Crs

oraig prfi 2006 2007 2008 2009 2010


Total Sales $4,590,136 $5,635,077 $5,172,285 $4,169,156 $3,836,680

Sales per Store $4,179,306 $3,634,461 $3,847,389 $3,379,518 $3,024,520

Total Asset Investment $2,220,262 $1,943,465 $1,852,690 $1,823,371* $1,748,807

Total Inventory $1,190,000 $948,000 $985,631 $924,000 $897,137








prfiabiiy prfi 2006 2007 2008 2009 2010

Gross Margin 31.3% 35.1% 33.5% 31.7% 31.3%

Net Profit (Before Taxes) to Net Sales 2.8% 1.9% 1% 1.7% 2.1%

Gross Margin Return on Inventory 124.5% 138.9% 135.3% 121.1% 110.4%

Return on Net Worth (Before Taxes) 9.4% 5.9% 9.6% 5.1% 5.5%



Icm Sam 2010

Net Sales 100%


Gross Margin 31.3%



Total Expenses 31.7%

Gross Operating Profit 1.1%

Other Income 1.0%


Baac Sh 2010


Fixed Assets 25.7%

Total Assets 100%

Current Liabilities 17.2%

Long-Term Liabilities 16.4%

Total Liabilities 33.6%

Net Worth 66.4%





15/20

2011

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Hardware Retailing6

Nove

mber2011

www.nrha.org

Fiacia prfi f D-I-Y lmbryards

oraig prfi 2006 2007 2008 2009 2010


Total Sales $5,033,061 $5,088,503 $4,083,096 $3,872,256 $2,289,127

Sales per Store $4,707,751 $4,252,288 $3,022,463 $3,237,253 $2,216,316

Total Asset Investment $2,123,617 $1,631,225 $1,602,620 $1,370,317* $1,186,173

Total Inventory $976,800 $750,000 $852,593 $630,000 $489,889








prfiabiiy prfi 2006 2007 2008 2009 2010

Gross Margin 25.3% 23.2% 29.3% 25.6% 25.8%

Net Profit (Before Taxes) to Net Sales 2.1% 1.1% 0.8% -0.2% 0.9%

Gross Margin Return on Inventory 133.4% 134.3% 185.5% 135.4% 120.8%

Return on Net Worth (Before Taxes) 8.3% 4.4% 7.0% -0.5% 3.5%



Icm Sam 2010

Net Sales 100%


Gross Margin 25.8%



Total Expenses 27.1%

Gross Operating Profit -0.4%

Other Income 1.4%


Baac Sh 2010


Fixed Assets 22.9%

Total Assets 100%

Current Liabilities 15%

Long-Term Liabilities 37%

Total Liabilities 52%

Net Worth 48%




Fiaciaprfis


16/20

2011

AnnuAl

Repo

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Hardware Retailing8

Nove

mber2011

www.nrha.org

Fiacia prfi f ladig pbicy Hd D-I-Y Chais 2010

oraig ad prdciviy prfi Hm D lw's Cs.

Number of Stores (at end of 2010) 2,248 1,749

Average Size of Selling Area (sq. ft.) 105,000 113,000

Total Sales $68.0 Bl. $48.82 Bl.

Total Asset Investment $40.13 Bl. $33.67 Bl.

Total Inventory $10.63 Bl. $8.32 Bl.

Sales Per Square Foot $288.64 $247.82

Inventory Turnover 4.1x 3.8x

Net Sales to Inventory 6.4x 5.9x

Total Sales Per Employee $211,838 $204,444

Average Size of Transaction $51.93 $62.07

Gross Margin Return on Inventory 219.4% 205.9%

Icm Sam Hm D lw's Cs.

Net Sales 100.0% 100.0%

Cost of Goods Sold 65.7% 64.9%

Gross Margin 34.3% 35.1%

Total Operating Expenses 25.7% 28.5%

Net Income (Before Taxes) 8.6% 6.6%

Baac Sh Hm D lw's Cs.

Total Current Assets 33.6% 29.6%

Cash 1.4% 1.9%

Receivables 2.7% nA

Inventory 26.5% 24.7%

Other 3.1% 1.0%

Fixed Assets 66.4% 71.0%

Total Assets 100.0% 100.0%

Current Liabilities 25.2% 21.1%

Long-Term Liabilities 27.7% 19.4%

Net Worth 47.1% 59.5%

Total Liabilities and Net Worth 100.0% 100.0%

Source: Company Reports and Hardware Retailing Estimates

Fiaciaprfis



prfi f Whsaig Craivs ad naia Disribrs

Ac Hardwar

C.D I Bs C.

tr Va

C.orgi Ic.

Hady

Hardwar

Whsa

uid

Hardwar

Dis. C.

Number of Distrubution Centers 14 8 12 5 2 4

Current Number of Members4,450

2 4,100 4,600 appx. nA 1,259 594

Number of Non-Member

Accounts Served0 nA 0 nA 21 616

Dollar Volume Most Recent

Fiscal Year$3.53 Bl. $2.41 Bl 5 $1.8 Bl. $1.179 Bl. $235 Ml. $179 Ml. 4

Estimated Dollar Volume

Calendar 2011nA nA nA $1.3 Bl. $245 Ml. $184 Ml.

% Sales out of Warehouse 73% 38% 72% 71% 65% 81%

% Sales Out of Pool/Relay 0% 0% 0% 0% 1% 1%

% Sales Direct-Drop Ship 22% 46% 28% 29% 34% 18%

% Sales in LBM nA 16% 7% 9% 6% 5%

Number of Employees 4,000 appx. 1,403 2,400 appx. 1,761 446 335

Avg. Number of SKUs in

Warehouse80,000 67,000 nA 71,000 48,000 51,500

Sales/Inventory Ratio for 2010 nA 5.5 5 6.4 6.5 4.2 5.51 3

2010 Member Rebate

Distributed$70 Ml. 105.8 Ml. 5 nA nA nA $4 Ml.

% Cash 40% 79% 41% nA nA 50%

% Stock 60% 21% 16% nA nA 50%

% Other nA 0% 42% nA nA nA

Source: Company reports 1 Fiscal year 2010.

2 Domestic and International.

3 Warehouse sales only.

4 Fiscal year end Nov. 30.

5 Fiscal year end June 25.

prfi f Whsaig Mrchadisig Grs

pRo Gr Ic.Disribi

AmricaVa-ts Gr

Riab

Disribrs

Current Number of Wholesale Members 30 9 100 109

Number Member Wholesalers End 2010 31 10 100 109

Number Member-Operated Distribution Centers 40 15 104 200

Dollar Volume for 2010 Fiscal Year $3 Bl. nA $1 Bl. 1 $2.1 Bl.

Estimated Dollar Volume Calendar 2011 $3 Bl.8% as

v 2010$1 Bl. $2.1 Bl.

Number of Retail Stores Served by Members 35,000 10,000 2,000 20,000

Number of Program Stores 800 1,400 500 nA

Number of Employees 22 10 12 9

Source: Company reports


18/20



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Mifamiy prdci Idx*

10Q1

2009

Fr Sa

Fr R (Mark R)

Fr R (lw R)

Q1

2010

Q1

2011

Q2

2009

Q2

2010

Q2

2011

Q3

2009

Q3

2010

Q4

2009

Q4

2010

20

30

40

50

60

70

*The Multifamily Index is one of the leading indicators measuring confidence developers have in the multi-family market.

Any number over 50 indicates that more respondents report conditions are improving than those who report conditions

are getting worse.

Source: National Association of Home Builders


20/20

2011

AnnuAl

Repo

Rt

ove

mber2011

Hsigtrds

Hsig AffrdabiiyMdia-pricd

exisig Sig-

Famiy HmMrgag Ra 1

Mhy p&I

paym

paym

as %

Icm

Mdia

Famiy

Icm

Qaifyig

Icm 2

Cmsi

Affrdabiiy

Idx 3

2008 $196,600 6.15 $958 18.5% $62,030 $45,984 137.8

2009 $172,100 5.14 $751 14.8% $61,082 $36,048 169.4

2010 $173,100 4.89 $734 14.4% $61,313 $35,232 174.0

Aug. 2011 (p) $168,400 4.69 $698 13.6% $61,553 $33,504 183.7

1 Effective rate on loans closed

on existing homes.

Federal Housing Finance Board

2 Based on a 25% qualifying ratio for

monthly housing expense to gross monthly

income with a 20% down payment.

3 Index equals 100 when median

family income equals qualifying

income.

Source: National Association of

Realtors

Hsig Saisics By Rgi

nw Sig-Famiy Hms Sd (thousands of homes)

Yar ta u.S. nrhas Midws Sh Ws

2007 776 65 118 411 181

2008 485 35 70 266 114

2009 356 38 51 184 83

2010 331 22 38 168 103

Aug. 2011 (p)* 295 19 53 164 59

exisig Sig-Famiy Hms Sd (thousands of homes)


2008 4,913 849 1,129 1,865 1,070

2009 5,156 868 1,163 1,914 1,211

2010 4,907 817 1,076 1,860 1,154

Aug. 2011 (p)* 5,030 770 1,090 1,940 1,230

Hsig Sars (thousands of homes)


2007 1,355 143 210 682 320

2008 906 121 135 454 196

2009 554 62 97 278 117

2010 587 72 98 298 120

Aug. 2011 (p)* 571 61 80 292 138

Source: U.S. Department of Commerce

*Seasonally adjusted annual rate

retail diy market measure 2011

Documents