Cost of Doing Business Study
For over 100 years, this annual study provides detailed financial information from hardware stores, home centers, lumber and building materials (LBM) outlets and paint and decorating outlets in the U.S. that independent retailers can use to benchmark their business.
Study Benefits
Compare your financials to peers
Identify cost-saving opportunities
Improve margins
Plan for long-term growth
A Better Year Starts With Better Data
Available for purchase, the 2026 Cost of Doing Business Study provides NHPA’s annual financial and operational profile of independent hardware stores, home centers, lumber and building materials (LBM) outlets and paint and decorating outlets across the U.S. Measure your business, assess performance and plan for the future with the industry’s benchmark study.
How the Study Improves Your Business
Additional Resources
NHPA has created a library of resources to help retailers better understand and use the metrics presented throughout the Cost of Doing Business Study. These resources include case studies from other retailers who have improved specific metrics and videos retailers can share with their employees to train them to better understand the financial side of the business.
Frequently Asked Questions
What is NHPA's Cost of Doing Business Study?
NHPA’s Cost of Doing Business Study is an annual financial benchmarking report for independent hardware stores, home centers, lumber and building materials retailers and paint and decorating stores. The study provides detailed financial and operational data that helps retailers compare business performance, identify opportunities for improvement and make more informed decisions.
What financial benchmarks should store owners track?
Store owners should monitor key performance indicators such as gross margin, average transaction amount, annual customer count, sales per square foot, payroll expenses as a percentage of sales and profit before taxes. These metrics help retailers understand financial performance, control operating costs and identify opportunities to improve profitability.
How can I compare my store's financial performance with industry averages?
Independent retailers can use NHPA’s Cost of Doing Business Study to compare their financial and operational performance with industry benchmarks. Reviewing sales, profitability, expenses and productivity metrics can help owners identify where their businesses are performing well and where improvements may be needed.
How can independent retailers improve their profit margins?
Independent retailers can improve profitability by evaluating product pricing, inventory performance, operating expenses, payroll efficiency and average transaction size. NHPA’s Cost of Doing Business Study provides industry benchmarks that help retailers identify performance gaps and prioritize strategies to strengthen margins.
Who should use the Cost of Doing Business Study?
The study is designed for independent hardware store owners, home center operators, lumber and building materials dealers, paint and decorating retailers and business managers. It is particularly valuable for decision-makers responsible for financial planning, budgeting, operational efficiency and long-term business growth.
How often is NHPA's Cost of Doing Business Study published?
NHPA publishes the Cost of Doing Business Study annually, providing independent home improvement retailers with updated financial and operational benchmarks. Retailers can use each edition to evaluate their performance against industry data and monitor progress over time.
Explore More Today
NHPA offers additional research available to purchase or download for free. Explore insights from the annual Market Measure Report and the Quarterly Independent Performance Report to better understand industry trends and benchmark your business.