Paint and Wallpaper Stores Industry Profile

The US paint and wallpaper store industry includes about 3,000 companies that operate about 8,000 stores with combined annual revenue of about $10 billion. Major companies include the retail divisions of paint manufacturers Sherwin-Williams, Benjamin Moore, and Kelly-Moore. The industry is concentrated: the top 50 companies account for about 70 percent of industry revenue.

COMPETITIVE LANDSCAPE

Home maintenance, home sales, and construction and remodeling trends drive demand. The profitability of individual companies depends on effective merchandising and marketing and the ability to establish relationships with contractors. Large companies have advantages in purchasing, distribution, finance, and marketing. Small companies can compete effectively by offering specialty products, providing superior customer service, or serving a local market. Average annual revenue per worker is about $260,000.

Competition includes home centers, hardware stores, mass merchandisers, and direct sellers.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products sold include paints, coatings, wallpaper, and painting equipment. Paint includes interior and exterior paints. Coatings include stains, varnishes, and shellacs. Painting equipment includes brushes, rollers, sprayers, and tools. Companies typically sell paint and wallpaper supplies, such as primers, adhesives, and caulks.

Most retailers sell architectural paint or paint used on or in buildings, including residential housing and commercial buildings. Paint finishes include flat, satin, semi-gloss, or high-gloss. Most paints are water-based or latex. Oil-based or solvent-based paints contain organic solvents, such as mineral spirits, toluene, xylene, or other petroleum distillates. Oil paints contain volatile organic compounds (VOCs) ...