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The North American Hardware and Paint Association’s 2026 Cost of Doing Business Study is available for purchase. It provides financial benchmarks for U.S. hardware stores, home centers, lumber and building materials outlets, and paint and decorating retailers, including gross margin figures by business type.
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 home improvement retailers in the United States. The report covers hardware stores, home centers, lumber and building materials outlets, and paint and decorating outlets, giving businesses figures they can use to compare their operations with peers.
The study reports gross margin after rebates and dividends by retail category, with separate figures for typical and high-profit businesses. Hardware stores are listed at 42.7% for typical operators and 42.9% for high-profit operators. Home centers are listed at 33.0% and 32.7%, respectively.
For lumber and building materials outlets, the reported margins are 30.2% for typical businesses and 33.0% for high-profit businesses. Paint outlets are listed at 38.2% for both groups. These are category-level benchmarks; the supplied report excerpt does not provide sample sizes, detailed methods, or the full set of financial measures in the study.
Hardware Retailing, which reported the study’s availability on October 31, said retailers can purchase it through NHPA’s website. The article presents the report as a tool for financial benchmarking, rather than a set of targets that every business should expect to meet.
How Retailers Can Use the Benchmarks
For independent retailers, comparable financial data can help identify areas where a business differs from peers and prompt closer review of costs, sales, or profitability. A margin figure on its own does not explain why one company performs differently from another, but it can give owners a starting point for investigating their own results.
John Samore Jr., co-owner of Vermont Outlet True Value Hardware, told Hardware Retailing that he compares his company’s figures with those of high-performing retailers and conducts a gap analysis four times a year. He said his reviews include sales, cost of goods sold, gross profit, sales per square foot, customer count, and sales per customer. After a recent analysis, he said he took steps to address declining sales, which he described as a major issue for the operation.
The published margin figures also show why category matters: typical gross margins vary from 30.2% for LBM outlets to 42.7% for hardware stores. Retailers should compare themselves with the relevant business category and interpret the figures alongside their own operating conditions, rather than treating one number as a complete assessment of performance.
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A Long-Running Retail Benchmark
Hardware Retailing describes the study as an annual resource with a history spanning more than 100 years. It is intended for independent retailers across several segments of the home improvement industry and compiles financial information that businesses can use to benchmark their operations.
The October 31 article promotes the 2026 edition and highlights gross margin after rebates and dividends. It does not reproduce the full report. The article also includes endorsements from retailers who say the study has helped them assess their businesses, but those testimonials are individual experiences and are not independent evidence that every purchaser will achieve similar results.
“Taking part in gap analyses using the Cost of Doing Business Study has improved our operation’s bottom line by focusing on the matrices and indices that enhance pre-income tax profits.”
— John Samore Jr., co-owner of Vermont Outlet True Value Hardware, quoted by Hardware Retailing
Details Beyond the Published Figures
The source article does not specify the study’s sample size, data-collection period, calculation methods, or regional breakdowns. It also does not provide the full range of financial metrics included in the purchasable report, so readers cannot assess those details from the article alone.
The reported margin figures should not be read as proof that a business is profitable overall. The source does not define the study’s “typical” and “high-profit” groupings in the article, nor does it explain how differences in store size, product mix, geography, or accounting practices may affect comparisons. The full methodology and additional data would need to be consulted before drawing conclusions about a particular retailer.
Retailers Can Review the Full Study
Retailers interested in the complete findings can purchase the 2026 Cost of Doing Business Study through the NHPA website listed in Hardware Retailing’s report. The next step for businesses using it is to compare relevant measures with their own financial records and investigate gaps in light of their specific operations.
No additional release date, update schedule, or subsequent analysis is specified in the source article. Any conclusions beyond the published figures depend on the full report and the circumstances of each business.
Key Questions
Who published the 2026 Cost of Doing Business Study?
The study is from the North American Hardware and Paint Association. Hardware Retailing reported that it was available for purchase on October 31, 2026.
Which types of businesses are covered?
The study covers U.S. hardware stores, home centers, lumber and building materials outlets, and paint and decorating outlets.
What gross margin figures were reported?
After rebates and dividends, the article lists typical and high-profit margins of 42.7% and 42.9% 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 published figures show whether an individual retailer is profitable?
No. They are category-level gross margin benchmarks, not a complete measure of a company’s profitability. The source article does not provide enough methodology or business-specific information to assess an individual retailer.
Where can retailers get the full report?
Hardware Retailing directs readers to the NHPA website to purchase the 2026 study. The source article does not include the report’s full methodology or all of its financial measures.
Source: hardwareretailing.com
