Hardware Retailing The Industry's Source for Insights and Information
Understanding how independent home improvement operations are performing throughout the year helps other retailers in the channel compare themselves to their peers and use that data to make improvements to their operations.
Since 2022, the North American Hardware and Paint Association has partnered with The Farnsworth Group to produce the Independent Retailer Index, which tracks key performance metrics quarterly.
Every quarter, the index asks independent home improvement retailers to share year-over-year changes in:
- Transaction count and size
- Inventory investment
- Cost of goods
- Profit margin dollars
- Future operational investments
We surveyed retailers on their performance in the first quarter of 2025 compared to Q1 2024. See highlights of the data here and download the full report at YourNHPA.org/retailer-index.
Respondent Profiles
Many different types of independent retailers participated in the survey, with 69% operating one store and almost half (45%) operating in rural locations.
- 69%: of respondents were store owners
- 29%: have annual sales between $2 and $5 million
- 49%: have 10 or fewer full-time employees
Changes in Total Sales (Year over Year)
33% of retailers saw year-over-year sales growth in Q1, which is 5% higher than the Q1 2024 performance and stable from Q1 2023. On average, participants’ sales increased by 0.2% year-over-year, the first positive change in the past 2 years.
Changes in Gross Profit Margins (Year over Year)
Although more retailers are seeing an increase in profit margins over prior quarters, the average change in profit margin is at its lowest in the past 2 years (-3.9%). This indicates that of those who are seeing declines, their decreases are much larger than those seeing increases.
Access the Index
Be sure you’re on the list to receive the newest data from the Independent Retailer Index quarterly. Head to YourNHPA.org/research to subscribe today.
