There has been rapid growth in building supplies superstores in recent years spurred by the warehouse retail format but prospects call for a less robust pace of sales to individual consumers as this sector matures. Accordingly, industry participants are developing new programs to cater to professional contractors and home remodeling customers. The professional end of the market is highly fragmented and includes such businesses as electric, plumbing, wall decorating, flooring, etc. Since this market is poised for above-average industry growth, HD is developing programs to cater to commercial customers by offering prepared orders ready for pick up and larger count packages, as well as employing a sales staff devoted to the professional customers needs. The retail building supply industry should be a prime beneficiary of growth in home ownership.
Home ownership continues to be the American dream.
The Census Bureau projects home ownership for 2000 at 70 percent for persons over 40 years of age versus 67 percent at the end of the 1990's. In addition, the aging stock of homes in the U.S. bodes well for industry sales. About 85 percent of U.S. homes are more than 20 years old and in need of some maintenance. In addition, a growing portion of the population is spending more time at home and is sprucing up their living environment. The innovator in the home improvement retail industry, HD was the first to combine economies of scale based on a warehouse format with a high level of customer service.