Before big-box retailers, most communities had a local hardware store.
In many cases, these stores served as a community hub, selling everything from building supplies and hardware to grills and whatever a homeowner might need that wasn’t readily available elsewhere.
These stores still have a role, according to GlobalData Managing Director Neil Saunders, but it’s a shrinking one. He noted that consumers go to big-box stores for large projects, but their local hardware stores for smaller projects.
“The broader truth here is that Home Depot does best for big scale improvement tasks and major DIY jobs and is a major destination for consumers undertaking such work,” Saunders told the Associated Press. “Unfortunately, the market did not play ball over the final quarter with the number of projects undertaken down by 1.5%, mostly driven by a sharp decline in bigger ticket projects, such as full remodels.”
That’s a small ray of sunshine, but it has not stopped local hardware retailers, including Montreal’s 110-year-old BMR Quincaillerie Notre-Dame de St-Henri, from closing.
Quincaillerie Notre-Dame will close because its owners can’t find a buyer to keep it in operation. That’s partly because consumer behavior has shifted.
“The percentage of hardware stores that are truly independent (mom‑and‑pop style) has dropped over the decades, from 47% in 1992 down to 42% by 2018,” reported The Handbuilt City.
These stores also face the challenge that forced Quincaillerie Notre-Dame to close, namely, the lack of an heir to take over the business.
“The average independent hardware retail store owner — the neighborhood Joe making your keys or selling you paint — is turning 60 and his children are not rushing to take over the store,” the North American Retail Hardware Association (NARHA) told the Las Vegas Review-Journal.
That’s something the trade association wants to correct.
“It is a huge issue we are focused on,” said Scott Wright, executive director of the Leadership Institute for NRHA. “Many of those retailers don’t have a succession plan for passing that down to the next generation or someone within the company.”
Home Depot dominated the home-improvement sector with 28% of the market in 2025, with Lowe’s capturing 17% of the market and Amazon generating 11% of the sector’s sales, according to the Numerator Home Improvement Tracker.
The “big three” retailers captured about 56% of sales, while many smaller chains and retailers struggled to generate enough sales to stay in business.
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In addition, the overall market for home improvement has struggled.
“The housing turnover has remained at historic lows since 2023, which has significantly reduced demand for projects and other purchases associated with buying and selling a home,” Home Depot CFO Richard McPhail said in the company’s quarterly earnings call in February 2026, according to MarketBeat.
Consumer loyalty in retail has also weakened, according to McKinsey & Company’s Retail reset: A new playbook for retail leaders.
“About half of consumers reported switching brands in 2022, compared with only one-third in 2020. What’s more, about 90% said they’ll keep switching. Absent truly differentiated, exclusive offerings, the retailer will soon become a utility — just a means of distribution,” the research firm reported.
Home Depot and Lowe’s control the majority of the hardware market. Shutterstock
While the loss of local hardware stores that have been around for more than 100 years makes it seem like the industry is collapsing, that’s not actually the case.
“There are 14,331 Hardware Stores in the U.S. businesses as of 2025, an increase of 1.1% from 2024. The number of Hardware Stores in the U.S. businesses has grown 1.5% per year on average over the five years between 2020 and 2025,” according to data from Ibis World.
The industry faces challenges, and while Home Depot and Lowe’s, along with Amazon, dominate, there remains room for other players.
“The Hardware Stores industry has had a mix of growth and challenges in recent years. With current year revenue growth of 1.9%, reaching $45.2 billion in 2025, the industry has seen moderate progress, bolstered by the gain of DIY projects,” Ibis World shared.
The industry is growing overall, but that growth is increasingly concentrated among larger chains.
Smaller projects, however, benefit independent retailers.
“Fueled by consumer cost-saving motives, these projects have been a key revenue driver as households increasingly take on home improvement tasks. Shoppers have flocked to hardware stores for tools, paint and other supplies, boosting foot traffic and pushing for expanded product lines. Despite this, profit remains stable above the sector’s yet falls short of pre-pandemic levels,” the data company added.
This story was originally published by TheStreet on Apr 11, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
