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The North American Hardware and Paint Association’s 2026 Cost of Doing Business Study is now available for purchase. It provides financial benchmarks for four types of independent home improvement retailers, including gross margin figures for typical and high-profit businesses.
The North American Hardware and Paint Association 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 report is intended to help businesses compare their performance with figures from their own retail category.
The study covers financial information from U.S. independent retailers across four business categories: hardware stores, home centers, lumber and building materials (LBM) outlets, and paint and decorating outlets. Hardware Retailing reported the study’s release on October 31, 2026, and directed readers to the NHPA website to purchase it.
One published comparison is gross margin after rebates and dividends. Hardware stores recorded a typical figure of 42.7% and a high-profit figure of 42.9%. For home centers, the reported figures were 33.0% typical and 32.7% high-profit. LBM outlets were listed at 30.2% typical and 33.0% high-profit, while paint outlets were at 38.2% for both groups.
These figures are category-level benchmarks, not forecasts or guarantees of what an individual business should achieve. The source does not provide the study’s full methodology, sample sizes, or additional tables in the article. Retailers seeking those details would need to consult the report itself.
Benchmarks for Retailer Decisions
The report gives independent operators a way to compare financial performance with businesses in a similar retail category, rather than relying only on broad industry averages. Measures such as gross margin can help owners identify areas to examine, but a comparison alone does not explain why one company’s results differ from another’s.
Hardware Retailing quoted John Samore Jr., co-owner of Vermont Outlet True Value Hardware, describing how his business uses the study in recurring gap analyses. He said he compares company results with high-performing retailers’ numbers and reviews sales, cost of goods sold, gross profit, sales per square foot, customer count and sales per customer. He said the latest analysis prompted steps to address declining sales, which he described as a major issue for the operation.
That account illustrates one possible use of the study, but it is an individual retailer’s experience, not evidence that benchmarking will produce the same result for other businesses. Owners still need to interpret the figures alongside their own costs, local market conditions and operating plans.
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A Long-Running Industry Study
Hardware Retailing says the association’s Cost of Doing Business Study has provided financial information for more than 100 years. Its stated purpose is to support benchmarking among independent retailers in the home improvement sector.
The article presents the 2026 edition as a resource available for purchase and publishes selected gross-margin comparisons. It does not describe changes from the previous edition or say whether the current report uses the same measures and methods as earlier studies. The available figures should therefore be read as the values reported for this edition, not as proof of a year-over-year trend.
““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
Details Beyond the Published Figures
The article does not state how many businesses contributed data, how the study defines “typical” and “high-profit,” or the precise period covered by the financial figures. It also does not publish the full set of financial measures included in the report, its price, or details about access after purchase. Those points remain unconfirmed from the source article and would require the full study or further information from NHPA.
The reported margin figures also do not explain the causes of differences between categories or groups. For example, the home center’s listed typical margin is 33.0%, compared with 32.7% for its high-profit group; the source supplies the figures but no explanation for that ordering. Readers should not infer a cause from the numbers alone.
Retailers Can Obtain the Report
NHPA directs interested retailers to yournhpa.org/2026-cost-of-doing-business-study to purchase the 2026 report. The article does not announce a future release date, additional public data, or a related event. Retailers considering a benchmark comparison can review the full study for its definitions and methods before applying the figures to their own business decisions.
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 retailers does the study cover?
It covers U.S. independent hardware stores, home centers, lumber and building materials outlets, and paint and decorating outlets.
What gross-margin figures were reported?
Reported typical and high-profit margins after rebates and dividends were: hardware stores, 42.7% and 42.9%; home centers, 33.0% and 32.7%; LBM outlets, 30.2% and 33.0%; and paint outlets, 38.2% and 38.2%.
Does the article explain how the study calculates its benchmarks?
No. The article does not provide the sample size, definitions of “typical” and “high-profit,” or detailed methodology. Those details may be available in the full report.
Where can retailers purchase the study?
The article directs readers to yournhpa.org/2026-cost-of-doing-business-study to purchase the 2026 edition.
Source: hardwareretailing.com
