CLEVELAND, Feb. 23, 2017 /PRNewswire/ -- Home centers posted more than $1.7 billion in hand tool sales in 2015, making them the largest distribution channel, with nearly one-third of overall sales. Home centers overtook direct sales and distributors and other retail stores to become the leading distribution channel between 2010 and 2015 due to the increased emphasis on sales to the professional market. Home centers have also been supported by ongoing interest in do-it-yourself (DIY) projects, demand for higher-value hand tools among consumers, and growth in the number of US households. Even as these establishments continue to promote their e-commerce business, the high number of home centers in the US will continue to support hand tool sales. These and other trends are presented in Hand Tools, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Going forward, sales of hand tools through home centers are forecast to rise 1.9 percent per annum through 2020 to $1.9 billion, approximating the advances of hand tool sales overall and outperforming other sales channels except e-commerce. Gains in hand tool sales from home centers will come mainly at the expense of direct sales and distributors and smaller retail establishments. Among smaller outlets, the growth in home center sales has caused consolidation of local chains, since these smaller stores are unable to offer the high volume and low prices that are common in large retail establishments.
Besides reaching out to professionals and consumer DIYers home centers will also benefit from growing consumer preference for the convenience and price advantages that home centers offer. Furthermore, the continued growth in construction spending will offer additional opportunities.
More information about the study is available at http://www.freedoniagroup.com/industry-study/hand-tools-3439.htm
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Consumer Goods studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group