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The North American Hardware and Paint Association’s 2026 Cost of Doing Business Study is available for purchase. It offers financial benchmarks for independent hardware stores, home centers, lumber and building materials outlets, and paint retailers, including gross margin after rebates and dividends.
The North American Hardware and Paint Association (NHPA) has made its 2026 Cost of Doing Business Study available for purchase, offering independent home-improvement retailers financial benchmarks across four business categories. The report includes figures such as gross margin after rebates and dividends that stores can use to compare their results with typical and high-profit peers.
According to Hardware Retailing, the study covers hardware stores, home centers, lumber and building materials (LBM) outlets, and paint and decorating outlets in the United States. NHPA says the study has provided detailed financial information for more than 100 years. The association presents it as a resource for retailers seeking to evaluate business performance and identify areas for improvement.
One set of figures published with the announcement compares gross margin after rebates and dividends. Hardware stores recorded a typical margin of 42.7%, compared with 42.9% for high-profit stores. For home centers, the reported figures were 33.0% typical and 32.7% high-profit. LBM outlets showed 30.2% typical and 33.0% high-profit, while paint outlets reported 38.2% for both groups.
The numbers are category-specific benchmarks, not a forecast or a guarantee of what an individual retailer should earn. The announcement does not provide the full tables or explain the study’s definitions, sample sizes, or methods for classifying high-profit businesses. Retailers would need to consult the complete study for those details and for the other financial measures it contains.
Benchmarks for Retailer Decisions
Independent retailers can use comparable financial data to identify differences between their own performance and figures reported for businesses in the same sector. The gross-margin comparisons show that the gap between typical and high-profit results varies by category: the published difference is 2.8 percentage points for LBM outlets, while the home-center typical figure is 0.3 points above the high-profit figure. Hardware-store figures differ by 0.2 points, and the paint figures are equal.
Those comparisons may prompt questions about costs, pricing, product mix, or operating practices, but the figures alone do not explain why margins differ. The study’s value for a particular business depends on how well its data and categories match the retailer’s circumstances. NHPA describes the report as a way to support financial benchmarking and business planning, rather than as a substitute for analyzing a store’s own accounts.
In testimony quoted by Hardware Retailing, John Samore Jr., co-owner of Vermont Outlet True Value Hardware, said he compares his business with high-performing retailers and conducts a gap analysis four times a year. He said the latest review led him to take steps in response to declining sales. His account illustrates one retailer’s use of the study; it does not establish that the same approach will produce similar results for every business.
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How Retailers Use the Study
The study is aimed at independent operators in the home-improvement trade who want to compare financial results with peers. Samore told Hardware Retailing that his recurring review focuses on sales, cost of goods sold, gross profit, sales per square foot, customer count, and sales per customer. Those measures are broader than the gross-margin figures highlighted in the announcement.
Another retailer quoted in the report, Sherry Cothron of Coastal Nail & Tool Building Supply Center, said the information gained from the study was valuable. Her comment is an endorsement from a participating or using business, not independent evidence of the study’s impact across the industry. The announcement directs interested retailers to yournhpa.org/2026-cost-of-doing-business-study to purchase the report.
“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
Study Methods and Scope Details
The announcement does not state how many businesses contributed data, the period covered by the financial results, or how NHPA defines “typical” and “high-profit” retailers. It also does not clarify whether the gross-margin figures represent averages, medians, or another calculation. Those details matter when readers decide how closely a benchmark applies to a particular store.
The published summary gives selected margin figures but not the full study’s tables, data collection process, or limitations. The exact purchase price and any access conditions are also not included in the announcement. No independent assessment of the report’s methodology or the retailers’ quoted experiences is provided in the source material.
Retailers Can Review Full Data
Retailers interested in the complete benchmarks can use the purchase link supplied by NHPA to obtain the 2026 study. Reviewing its definitions and methodology alongside a store’s own financial statements will help determine which comparisons are relevant. The announcement does not identify a future release date, additional rollout, or other next milestone; the report is described as available now.
Key Questions
Who published the 2026 Cost of Doing Business Study?
The North American Hardware and Paint Association published the study, according to the announcement carried by Hardware Retailing.
Which types of businesses are covered?
The study covers U.S. hardware stores, home centers, LBM outlets, and paint and decorating outlets.
What gross-margin figures were reported?
After rebates and dividends, the reported typical and high-profit margins were 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.
Does the announcement explain how the benchmarks were calculated?
No. It does not provide the sample size, reporting period, calculation method, or definitions for “typical” and “high-profit.” Retailers would need to consult the full study for methodological details, if provided there.
Where can retailers get the report?
NHPA directs retailers to yournhpa.org/2026-cost-of-doing-business-study to purchase the 2026 study.
Source: hardwareretailing.com
