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The North American Hardware and Paint Association’s 2026 Cost of Doing Business Study is available for purchase, offering financial benchmarks for independent U.S. hardware, home center, lumber and building materials, and paint retailers. The report includes typical and high-profit gross-margin figures by retail category; its publisher says retailers can use the data to compare performance and identify areas for improvement.
The North American Hardware and Paint Association has made its 2026 Cost of Doing Business Study available for purchase, giving independent U.S. home-improvement retailers financial benchmarks for comparing their operations with peers. The report covers hardware stores, home centers, lumber and building materials outlets, and paint and decorating outlets, and includes category-level figures such as gross margin after rebates and dividends.
According to Hardware Retailing’s October 31 report, the study compiles financial information for the four types of independent retailers. Its published gross-margin figures show differences by category and distinguish between typical retailers and high-profit retailers. The source does not provide the full methodology or explain how the two groups are defined in the material supplied.
For hardware stores, the reported gross margin after rebate and dividends is 42.7% for typical businesses and 42.9% for high-profit businesses. Home centers are listed at 33.0% and 32.7%, respectively. For lumber and building materials outlets, the figures are 30.2% and 33.0%; paint outlets are listed at 38.2% for both groups.
The association says retailers can use the study to benchmark financial performance and inform business planning. It is sold through the association’s website. The available report excerpt does not state the price, the number of participating businesses, or the period covered by the financial data.
Benchmarks for Retail Decisions
The figures offer independent retailers a reference point for reviewing their own financial results against reported peers in the same broad business category. That can help owners identify where to investigate performance, including margins, sales, customer counts, or productivity per square foot. The benchmarks are reference data, not a diagnosis of any individual store’s financial health.
For example, the figures show a 2.8-percentage-point difference between the reported typical and high-profit gross margins for LBM outlets. The gap is smaller in the listed hardware-store figures, while the reported home-center figure is slightly higher for typical businesses. These differences may prompt questions for retailers, but the excerpt does not establish why they occur or whether the categories are directly comparable beyond their labels.
Store owners considering operational changes would need to examine their own costs, local market, product mix, and the study’s full definitions and methodology. A benchmark alone cannot show which changes will improve a business’s results.
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A Long-Running Industry Study
Hardware Retailing describes the association’s Cost of Doing Business Study as a resource that has been produced for more than 100 years. The publication is aimed at independent retailers in the U.S. home-improvement sector and is presented as a way to compare a store’s financial measures with industry data.
The article includes examples from retailers who say they have used earlier study data. John Samore Jr., co-owner of Vermont Outlet True Value Hardware, said he conducts a gap analysis four times a year, comparing his operation with figures for high-performing retailers. He said he reviews sales, cost of goods sold, gross profit, sales per square foot, customer count, and sales per customer. Samore also said his most recent analysis led him to take steps in response to declining sales.
Sherry Cothron of Coastal Nail & Tool Building Supply Center praised the information available through the study, saying, “The results and data are priceless.” These comments are individual retailers’ accounts; the source does not provide independent evidence that buying or using the study produces a particular financial outcome.
““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
Methodology and Pricing Not Stated
The supplied report excerpt does not state the study’s price, sample size, data-collection period, or methodology. It also does not explain how the association classifies a retailer as typical or high-profit, or whether the reported figures account for differences in business size, location, product mix, or other operating conditions.
The gross-margin percentages are presented as category benchmarks, but the excerpt gives no ranges, medians, or measures of variation. It is not clear from the available information how much individual stores’ results may differ from the listed figures. The retailer testimonials also do not quantify financial changes or establish that the study alone caused them.
Retailers Can Review the Full Study
Retailers interested in the underlying figures can purchase the study through the association’s page at yournhpa.org/2026-cost-of-doing-business-study. The full publication may provide details not included in Hardware Retailing’s excerpt, including definitions and additional financial measures.
For businesses using the report, the next step is to compare relevant measures with their own records and review the study’s scope before drawing conclusions. The source does not announce a later release date, public presentation, or other scheduled milestone.
Key Questions
Who published the 2026 Cost of Doing Business Study?
The North American Hardware and Paint Association publishes the study. Hardware Retailing reported on its availability on October 31, 2026.
Which businesses does the study cover?
The report covers independent U.S. hardware stores, home centers, lumber and building materials outlets, and paint and decorating outlets.
What gross-margin figures did the report list?
Reported typical and high-profit gross margins after rebate and dividends are 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.
How can retailers get the study?
Hardware Retailing directs readers to yournhpa.org/2026-cost-of-doing-business-study to purchase it. The source excerpt does not give the price.
Does the report show that using the benchmarks improves profits?
No industry-wide result is established in the supplied material. Retailer John Samore Jr. said his use of gap analyses helped his operation’s bottom line, but this is a personal account and not evidence of a guaranteed outcome for other businesses.
Source: hardwareretailing.com
