Examining how fellow independent home improvement operations perform throughout the year gives retailers in the channel a benchmark for improving their own operations. Since 2022, the North American Hardware and Paint Association (NHPA) has partnered with The Farnsworth Group to produce the Independent Retailer Index, which tracks key performance metrics quarterly.

Every quarter, the index asks independent home improvement retailers to share data from year-over-year changes in:

• Transaction size and count
• Inventory investment
• Cost of goods
• Profit margin dollars
• Future operational investments

The most recent Independent Retailer Index brought together a focus group of independent retailers to provide insight into how retailers are performing amid economic uncertainty.

According to the focus group, 58% reported increased year-over-year sales growth. Average total sales grew by 3.9% during this period. This strong performance in the first quarter serves as a positive indicator that the upcoming spring season may surpass 2025 levels.

“I think it is encouraging that we are seeing some positive momentum in terms of sales, but I think it is important to temper our optimism as significant challenges continue to persist,” says Dan Tratensek, NHPA chief operating officer. “External issues like surging gas and utility prices, overall affordability and high interest rates could dampen some of the progress we saw in the first quarter, so we are still cautious with any declarations about this momentum having sticking power. We still feel relatively confident that we should see growth this year over last, the question will just be how meaningful that growth will be.”