There are few outlets today that can be classified as a true home improvement retail store as many of the previously wholesale outlets are making their products available to the general public. Some were forced to make the addition of retail sales to help keep their heads above the financial waters and finding new commercial customers in a competitive field may not be possible in some locations.

Additionally, with many homeowners working on improvement projects on their own, the home improvement retail store is gaining more market share from wholesale-only outlets. There are a few downsides to opening a home improvement retail store inside a traditional wholesale outlet including the taxing job of keeping up with local sales tax laws.

When selling to contractors and other wholesalers, the outlets did not usually worry about charging sales tax. However, when selling to the general public, the home improvement retail store must be sure to collect the right amount of state and local taxes for the jurisdiction in which they are located.



New Breed Of Customers Require More Personal Care

In addition to keeping track of sales tax, the home improvement retail store also has to deal with customers that may not be as understanding about how home improvements are completed. Many customers feel the store is responsible for selling them the right merchandise and equipment for their project, which as far different then dealing with contractors that simply want to buy the materials for their next job.

One thing some the home improvement retail store has to be careful of is not ignoring the wholesale trade that got them to their position within the market. By opening a home improvement retail store they risk not having the specialized people available to help the contractors. While many of them have made the adjustment, some have lost the wholesale business by not being able to meet their special needs.

More Competition from Cyberspace

On top of competition from brick and mortar stores, there has also been a recent addition to online home improvement stores with which the traditional retailers have to contend. Many offer the same tools and advice that a home improvement retail store offers but lack the hands-on approach to dealing with customers. They can fare well among the customer who know exactly what they want, but those that need to touch and feel everything before they buy will probably continue to shop at the local home improvement retail store.