TL;DR
Get business pricing on tools and workshop supplies
- Business-only prices and quantity discounts
- Tax-exempt purchasing
- Multiple users, one account, clear invoices
The North American Hardware and Paint Association’s 2026 Cost of Doing Business Study is available for purchase. It reports gross margin after rebates and dividends for four independent retail categories, while the supplied material does not provide the study’s full methodology, sample size or publication data beyond those figures.
The North American Hardware and Paint Association (NHPA) has made its 2026 Cost of Doing Business Study available for purchase, offering financial benchmarks for independent hardware stores, home centers, lumber and building materials outlets, and paint and decorating retailers. The figures published with the announcement include gross margin after rebates and dividends for typical and high-profit businesses in each category, giving owners a reference point for comparing their own results.
The study covers independent retailers in the United States, according to Hardware Retailing’s October 31 report. The association says the research has provided financial information for the industry for more than 100 years. The report is presented as a tool for retailers to assess their finances against figures from businesses in the same category.
The supplied figures show gross margin after rebate and dividends at 42.7% for typical hardware stores and 42.9% for high-profit hardware stores. For home centers, the corresponding figures are 33.0% and 32.7%. Lumber and building materials outlets are listed at 30.2% and 33.0%, while paint outlets are at 38.2% for both groups.
These numbers are category-level benchmarks, not a forecast or a guarantee of what an individual business should earn. Hardware Retailing reported that retailers can purchase the full study through NHPA’s website. The article does not state the study’s price or describe all of the financial measures included in the paid report.
Benchmarks for Retailer Decisions
Independent retailers can use comparable financial data to identify areas for closer review, rather than relying only on broad industry averages or informal comparisons. A margin figure, for example, may prompt an owner to examine purchasing costs, product mix, pricing, or rebate arrangements. It does not, by itself, explain why one business performs differently from another.
The published comparisons also show that the relationship between the typical and high-profit figures varies by category. The high-profit figure is slightly higher for hardware stores and LBM outlets, slightly lower for home centers, and the same for paint outlets. Those differences underline why owners should compare themselves with the appropriate business type and consult the study’s definitions before interpreting a number as a performance target.
For retailers operating on tight margins, small differences can inform questions about costs and sales productivity. The study’s value to a particular business will depend on how closely its size, operations and market resemble the businesses represented in the data—details not included in the announcement.
Products Worth Considering
Arlo Pro Wireless Security Camera, 2K HDR, 6th Generation, 4-Camera Kit
Blueair Blue Pure 511i Max Smart Air Purifier
TCL QM64L 85-Inch QD-Mini LED 4K Smart Fire TV
As an affiliate, we earn on qualifying purchases.
How Retailers Use the Study
Hardware Retailing’s report describes the study as a long-running resource for financial benchmarking in the independent home improvement sector. Its stated coverage spans four kinds of outlets: hardware stores, home centers, lumber and building materials retailers, and paint and decorating businesses. The release presents the report as a paid product, rather than publishing the underlying data in full.
John Samore Jr., co-owner of Vermont Outlet True Value Hardware, told Hardware Retailing that he compares his operation’s results with high-performing retailers in the study. He said he carries out a gap analysis four times a year, focusing on sales, cost of goods sold, gross profit, sales per square foot, customer count and sales per customer. Samore said his latest review led him to take steps to address declining sales, which he described as a major issue for his business.
Sherry Cothron of Coastal Nail & Tool Building Supply Center also endorsed the resource in comments published by Hardware Retailing, saying the information gained from the study was valuable. These are retailers’ accounts of how they use the data; the announcement does not provide an independent evaluation of the study’s effect on business results.
““I compare our data with the high-performing retailers’ numbers presented in the study.””
— John Samore Jr., co-owner of Vermont Outlet True Value Hardware, quoted by Hardware Retailing
Details Beyond Published Margins
The announcement does not give the study’s sample size, collection period, calculation methods or definitions of “typical” and “high-profit.” It also does not explain how retailers were grouped or whether the reported margins are weighted averages. Readers cannot determine from the published summary alone how closely the benchmark businesses match a particular store.
The figures are limited to gross margin after rebate and dividends. The article does not provide the full report’s other financial measures, the purchase price, or details about access and eligibility. The margin figures also should not be treated as profit: they describe a specific measure and do not account for every operating expense.
Hardware Retailing’s article attributes the study’s benefits to retailer experience and NHPA’s description of the report. It does not provide a controlled analysis showing that using the study causes improved profits. Retailers’ results will depend on their own costs, customer base, product mix and local conditions.
Retailers Can Review the Full Report
Retailers interested in the complete data can visit yournhpa.org/2026-cost-of-doing-business-study to find purchase information, as directed by Hardware Retailing. The full report is the next source for details that are absent from the announcement, including the study’s methodology and any benchmarks beyond gross margin after rebates and dividends.
For owners using the data, a sensible next step is to compare like with like: select the relevant retail category, check how the report defines each measure, and review several indicators rather than treating one margin figure as a complete diagnosis. Samore’s account describes a quarterly process that combines sales and margin measures with customer and space productivity, but the article does not say that NHPA recommends a particular review schedule.
No further release date or follow-up announcement is specified in the source material. The study is currently described as available for purchase; additional information about its underlying data and coverage would need to come from NHPA or the report itself.
Key Questions
What is the 2026 Cost of Doing Business Study?
It is a North American Hardware and Paint Association report containing financial information intended to help independent U.S. retailers benchmark their businesses. Its stated categories include hardware stores, home centers, LBM outlets, and paint and decorating outlets.
What gross margin figures were published?
Hardware Retailing reported gross margin after rebate and dividends of 42.7% typical and 42.9% high-profit for hardware stores; 33.0% and 32.7% for home centers; 30.2% and 33.0% for LBM outlets; and 38.2% for both paint outlet groups.
Do the figures show a retailer’s expected profit?
No. They are gross margin benchmarks for listed categories, not a forecast of an individual store’s earnings. Gross margin does not account for all operating expenses, and the published summary does not include enough methodology to assess how closely a given business matches the comparison group.
Where can retailers buy the study?
Hardware Retailing directs readers to yournhpa.org/2026-cost-of-doing-business-study. The source article does not state the price or provide further purchase terms.
Source: hardwareretailing.com
