Top Home Improvement Companies Making it Big in 2023

Home improvement refers to the act of renovating or modelling interiors or exteriors of a residential property. It includes a wide range of activities aimed at enhancing the functionality, aesthetics, and value of a residential property.

The prime home improvement companies are-

The Home Depot

Market Position or History

In December 2020, The Home Depot announced the acquisition of HD Supply Holdings, a leading national distributor of maintenance, repair, and operations (MRO) products. This deal has helped The Home Depot strengthen its presence in the MRO market while enhancing its capabilities to serve professional customers.

Business Overview and Strategy

Founded in 1978, the company is headquartered in Atlanta, Georgia, United States. It has emerged as one of largest home improvement retailers in the nation. It deals in appliances, services, tools, and construction products especially meant for home renovation or remodelling activities. It is worth noting that the company has 70 distribution centers spread across the United States.

Home Depot is aimed at providing the best services and products to the customers. It strives to bring a revolution in the home improvement industry .

Strengths

• It has a vast product pipeline.
• It has an extensive store network which has helped it to diversify its customer base.
• The company has a reputation for quality products and knowledgeable staff.

Weaknesses

• It has limited online presence.
• It does not have a solidified international presence.
• It does not follow a competitive pricing strategy.

Homebase

Market Position or History

In May 2018, Hilco announced the acquisition of Homebase. This acquisition has proved profitable for both the companies.

Business Overview and Strategy

Headquartered in Milton Keynes, United Kingdom, the company was set up in 1979. It specializes in providing a wide range of products and services for home and garden improvement projects. Its vast product portfolio includes DIY tools, building materials, paint, lighting, flooring, garden furniture, plants, and other home and garden accessories.

Homebase aims to become one of the leading home improvement retailers in the United Kingdom. Ir strives on providing customers with a seamless and inspiring shopping experience. With a customer-centric approach and a commitment to sustainability, the company aims to create lasting connections with customers and be at the forefront of the evolving home improvement industry.

Strengths

• It follows a customer-centric approach.
• It offers an extensive selection of products for home and garden improvement.
• It is environmentally responsible in nature.
• It embraces innovation and continually adapts to changes in the home improvement industry.

Weaknesses

• It faces intense competition from other players.
• It does not have a strong online presence.
• It is susceptible to challenges pertaining to consumer satisfaction.

Ace Hardware Corporation

Market Position or History

In 2019, Ace Hardware competitive the acquisition Handyman Matters, a franchise-based handyman services provider. This decision was aimed at enabling Ace Hardware to offer professional handyman services to customers through its network of stores.

Business Overview and Strategy

William Stauber, Frank Burke, Richard Hesse, E. Gunnard Lindquist, and Oscar Fisher established the company in 1924. Its headquarters are located in Oak Brook, Illinois, United States. It is known for dealing in a wide range  of hardware, home improvement, and maintenance products.

Ace Hardware is envisioned at creating a warm and welcoming environment across its stores, providing customers with personalized assistance, local expertise, and a wide selection of products to meet their needs. It believes in building strong customer relations and make a positive impact in the society it serves.

Strengths

• It is known for providing customers with personalized service and tailored recommendations.
• It has a strong brand recognition.
• It offers a comprehensive range of hardware and home improvement product.

Weaknesses

• It has limited international presence.
• It operates in a highly competitive environment.
• It relies heavily on independent store owners.

Rona Inc.

Market Position or History

In 2016, RONA Inc. announced the acquisition of Noble Trade, a plumbing and heating products wholesaler with an aim to expand its product offerings and enhance its services in the plumbing and heating segment.

Business Overview and Strategy

Rolland Dansereau and Napoleon Piotte established the company in 1939. Its headquarters are located in Boucherville, Canada. It has emerged as a prominent retailer of construction and home improvement products and services.            

Rona is envisioned at creating  a personalized and inspiring shopping experience, offering a broad assortment of products, innovative solutions, and value-added services to help customers achieve their home improvement goals.

Strengths

• It has a loyal consumer base.
• It has a wide store footprint.
• It has a strong brand recognition.

Weaknesses

• It faces intense competition from other companies.
• It is yet to build a robust online presence.

Canadian Tire

Market Position or History

In 2020, Canadian Tire acquired Padinox Inc, a Quebec-based company specializing in stainless steel commercial kitchen equipment.

Business Overview and Strategy

Headquartered in Toronto, Canada, the company was established on September 15, 1922. Alfred Jackson Billes and John William Billes are regarded as the founding fathers of this company. It operates across a wide range of businesses including  automotive, home and kitchen appliances, hardware, tools, sporting goods, financial services and clothing. It has built a strong reputation in the home improvement industry.

Canadian Tire aims to provide diverse products, excellent customer service, and innovative solutions to meet the needs of Canadian consumers.

Strengths

• It has a vast product pipeline.
• It has been showing consistent revenue growth.
• It makes extensive R&D investments.

Weaknesses

• It has its presence only in the Canadian market.
• It is susceptible to economic downfalls.

A detailed assessment of the business models, products, services, and market positioning of the aforementioned players-

Company	Business Model	Products and Services	Market Positioning
Ace Hardware	Cooperative	Hardware, tools, home improvement supplies	Local community-oriented stores with personalized customer service. Focuses on convenience and accessibility. Offers a wide range of products for DIY enthusiasts and professionals alike.
Homebase	Retail	Home and garden products, DIY supplies	Offers a range of home and garden products, tools, and DIY supplies. Focuses on providing value for money and convenience. Targets homeowners and DIY enthusiasts with competitive pricing.
The Home Depot	Retail	Home improvement products, construction materials	Large-scale retail stores with a broad selection of home improvement products. Targets both DIY consumers and professional contractors. Emphasizes quality, selection, and competitive pricing.
RONA Inc.	Retail	Home improvement products, building materials	Offers a wide range of home improvement products and building materials. Targets both DIY consumers and professional contractors. Focuses on offering quality products and expert advice.
Canadian Tire	Retail	Automotive, home, and leisure products	Provides a diverse range of products, including automotive, home, and leisure items. Focuses on convenience and one-stop shopping experience. Targets a broad customer base with competitive pricing.

Pricing Trends Analysis of Home Improvement Market

The home improvement market is shaped by various pricing trends driven by factors like competition, seasonality, economic conditions, supplier costs, premium offerings, and online competition. To gain a larger market share, retailers in this highly competitive market employ competitive pricing strategies, including discounts and promotions. Prices of certain products and services fluctuate based on seasonal demand, such as increased prices for gardening supplies and outdoor furniture during spring and summer. Economic conditions and construction activity influence pricing, with adjustments made during downturns or higher prices during periods of growth. Supplier costs, including raw materials and transportation, impact overall pricing. Premium products and services cater to customers seeking superior quality, innovative features, and exclusive designs, commanding higher prices. Online competition has intensified, leading to competitive pricing and convenient shopping experiences as both online and brick-and-mortar retailers adapt. Monitoring these trends and understanding customer demands are crucial for businesses to effectively position themselves and remain competitive in the dynamic home improvement market.