Earlier than large field retailers, most communities had an area ironmongery shop.
In lots of circumstances, these shops served as a group hub, promoting all the things from constructing provides and {hardware} to grills, and no matter a house owner would possibly want that wasn’t available elsewhere.
These shops nonetheless have a task, in line with GlobalData Managing Director Neil Saunders, however it’s a shrinking one. He famous that customers go to large field shops for big tasks, however their native {hardware} shops for smaller tasks.
“The broader truth here is that Home Depot does best for big scale improvement tasks and major DIY jobs and is a major destination for consumers undertaking such work,” Saunders instructed the Related Press. “Unfortunately, the market did not play ball over the final quarter with the number of projects undertaken down by 1.5%, mostly driven by a sharp decline in bigger ticket projects, such as full remodels.”
That is a small ray of sunshine, however it has not stopped native {hardware} retailers from closing together with the 110-year-old Quincaillerie Notre-Dame ironmongery shop in Montreal.
Native {hardware} shops are struggling
Quincaillerie Notre-Dame will shut as a result of its homeowners cannot discover a purchaser to maintain it in operation. That is partly as a result of shopper conduct has shifted.
“The percentage of hardware stores that are truly independent (mom‑and‑pop style) has dropped over the decades, from 47% in 1992 down to 42% by 2018,” reported The Handbuilt Metropolis.
These shops additionally face the problem that compelled Quincaillerie Notre-Dame to shut, the shortage of an inheritor to take over the enterprise.
“The average independent hardware retail store owner — the neighborhood Joe making your keys or selling you paint — is turning 60 and his children are not rushing to take over the store, the North American Retail Hardware Association (NARHA) told the Las Vegas Review-Journal.
That’s something the trade association wants to correct.
“It is a huge issue we are focused on,” said Scott Wright, executive director of the Leadership Institute for NRHA. “Many of those retailers don’t have a succession plan for passing that down to the next generation or someone within the company.“
Home Depot and Lowe’s dominate the market
Home Depot dominated the home improvement sector with 28% of the market in 2025, with Lowe’s capturing 17% of the market and Amazon generating 11% of the sector’s sales, according to the Numerator Home Improvement Tracker.
The big three retailers captured about 56% of sales, while many smaller chains and retailers struggled to generate enough sales to stay in business.
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In addition, the overall market for home improvement has struggled.
“The housing turnover has remained at historic lows since 2023, which has significantly reduced demand for projects and other purchases associated with buying and selling a home,” Home Depot CFO Richard McPhail said in the company’s quarterly earnings call in February 2026, according to MarketBeat.
Consumer loyalty in retail has also weakened, according to McKinsey & Company’s Retail reset: A new playbook for retail leaders.
“About half of shoppers reported switching manufacturers in 2022, in contrast with solely one-third in 2020. What’s extra, about 90% mentioned they’ll hold switching. Absent actually differentiated, unique choices, the retailer will quickly change into a utility — only a technique of distribution,” the analysis agency reported.
Dwelling Depot and Lowe’s management nearly all of the {hardware} market.
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{Hardware} shops are literally rising
Whereas the lack of native {hardware} shops which have been round for over 100 years makes it appear to be the business is collapsing, that is not really the case.
“There are 14,331 Hardware Stores in the US businesses as of 2025, an increase of 1.1% from 2024. The number of Hardware Stores in the US businesses has grown 1.5% per year on average over the five years between 2020 and 2025,” in line with knowledge from Ibis World.
The business faces challenges, and whereas Dwelling Depot and Lowe’s, together with Amazon, dominate, there stays room for different gamers.
“The Hardware Stores industry has had a mix of growth and challenges in recent years. With current year revenue growth of 1.9%, reaching $45.2 billion in 2025, the industry has seen moderate progress, bolstered by the gain of DIY projects,” Ibis World shared.
The business is rising total, however that progress is more and more concentrated amongst bigger chains.
Smaller tasks, nevertheless, profit impartial retailers.
“Fueled by consumer cost-saving motives, these projects have been a key revenue driver as households increasingly take on home improvement tasks. Shoppers have flocked to hardware stores for tools, paint and other supplies, boosting foot traffic and pushing for expanded product lines. Despite this, profit remains stable above the sector’s yet falls short of pre-pandemic levels,” the info firm added.
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