50-year-old Home Depot rival hardware chain closes stores
A combination of macroeconomic challenges is expected to lead to a softer increase in home improvement sales through the remainder of 2025, according to the September report. Home Improvement Research Institute report.
The institute was forecasting 3.4% growth in the overall home improvement market in June 2025, but the growth forecast has since been lowered to 2.5%.
The forecast calls for a lower increase in consumer market sales to 1.3% from the 2.6% forecast in June, and a lower increase in professional market sales to 4.6% from 4.9%.
Harmful economic challenges include consumer price inflation expected to rise to the 3% range by late 2025, housing starts to fall 5.3% in the second quarter of 2025, and a 2.7% decline in home sales in June. Hardware + Building Materials Dealer reported.
Mortgage loan interest rates are around 6.25 percent.
With fewer homes being built or renovated, home improvement and hardware retailers have reduced demand for their products.
Major home improvement retail chains Home Depot, Lowe’s, and Amazon dominate the industry, leaving a smaller percentage of sales to the remaining retailers.
Looking at sales in the third quarter of 2025, Home Depot had about 29% of the market, Lowe’s had 17%, and Amazon had 11.9%. Numerator’s Home Renovation Tracking.
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Home Depot, 29% of the market
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Lowe’s accounts for 17% of the market
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Amazon accounts for 11.9% of the market
The dominance of Home Depot, Lowe’s, and Amazon has proven too much for many small local hardware stores that have recently closed their doors permanently.
Carnation Ace Hardware, a 56-year-old hardware store in Carnation, Washington, closed its business for good on October 25.
Another iconic hardware store, 117 years old Ritter’s Real Value Gear It closed permanently in Mechanicsburg, Pa., on Sept. 30.
The historic 159-year-old Kreuger’s True Value hardware store in Neenah, Wis., in July 2025 close permanently It will be operational within 12 to 16 months after the liquidation sale.
Kreuger’s owners Jim and Brian Webb decided to retire and attempted to sell the business, but were unable to complete the sale with potential buyers.
The owners did not give a reason why they could not sell the business, but decreased demand for home improvement and fit-out may have made the sale more difficult.
And now the iconic Minnesota-based hardware chain Jerry’s Hardware and Rentalspart of the Do It Best retail cooperative, announced that it will close its two locations in the Twin Cities area on December 31, 2025.
