Independent Retailers Report Increased Operating Metrics

In the second quarter of 2022, many independent retailers across North America saw increases in transaction size, total sales, and inventory investment. However, transaction count was mixed, with slightly more retailers seeing a decrease in the quarter, says the inaugural quarterly ‘Independent Retailer Index’ from the North American Hardware and Paint Association (NHPA) in partnership with the Farnsworth Group. The index shows that profit margin was also mixed, with slightly more retailers (32 per cent) seeing an increase than a decrease (21 per cent). Nearly all retailers saw increases in their cost of goods, with 41 per cent saying it ‘greatly increased.’ Looking ahead to the third quarter, the majority of retailers don’t expect any performance changes. Transaction size is where 41 per cent of retailers expect to see an increase. Inventory investment and gross profit margins are expected to see the least growth. About 45 per cent of retailers are expecting to make a ‘small investment’ in the fourth quarter for property, plant and equipment, staff, and inventory. About a third expect to make no investment in any of these areas.