Confidential Business Plan: Do not distribute or copy this document without permission 8
The market hardware retail stores are reflective of the consumer spending and the housing market. The
private spending on home improvements averaging $4,000 last year are increasing and forecasted to
exponentially until 2019. Both revenue and employment is forecasted to increase within the next seven
years in the market, demonstrating that there is market potential for another retail hardware store to
enter the market. Population is forecasted to grow 6.6% for the next two years with the total revenues
of the retail hardware industry growing at 2% for the next year.
Figure 2: Source: IBIS World Industry Research
We have segmented our market based on three categories. Each category will have unique service needs,
methods of targeting our advertising methods and demands. Our expectations that most sales will be
within the property owners and residential contractors segment. Larger companies can deliver pricing
discounts, but our competitive edge is our small size enabling more intimate customer relationships,
knowledge over our items in stock and faster service than a large store with low staff density.
The overall population in Canada has grown 1.1% in 2012, this is a higher population growth rate than the
United States or China and near the 1.3% population growth of India.
The Moncton area is growing faster
than the national average with total population growth estimated to be at 2.2% annually between 2013
and 2016 and has grown at 2.4% annually from 2011 to 2013.
Historical Revenues & Projections