Hardware stores and warehouses increased by 8% due to the boost of self-construction

The number of hardware stores and warehouses at the national level increased by 8% from 2017 to 2022, driven by the spending that families made to make repairs and improvements in their homes due to the pandemic, according to the consulting firm Total Market Solutions (TMS).

“During the pandemic we were locked up and bonuses were given for recovery then locked up and with bonuses, normally the vast majority of people made repairs at home, the vast majority of people instead of saving money under the mattress, used it in building material,” said Solon King, TMS CEO.

In detail, the study reveals that in 2017 the number of deposits amounted to 2,111 and the number of hardware stores was 6,866, in total there were 8,977 businesses of this type. Five years later, the number of deposits fell to 1,229; On the contrary, there were 8,495 hardware stores, A total of 9,724 businesses were identified. Both censuses included 44 districts of Lima and regions such as Ayacucho, Huancayo, Huánuco, Huaraz, Ica, Iquitos, among others.

It is observed that in Ayacucho (-24%), Huaraz (-23%), Sur chico (-8%) and San Martín (-11%), this type of business registered a drop.

A slight drop in sales of cement, iron and paints is expected

As for the sales of cement, construction iron and paints in Lima, the arrival of the pandemic prompted its fall by 23%, but as of May 2020 a slow recovery began until in the last months of the year, from September to December, recorded a growth of 33%. In 2021 growth was sustained while in mid-2022 a more attenuated growth is observed. For the months of May to August, a drop of 4.5% is projected.

“What we see here, despite the fact that we hear that there is a blow to the construction sector in general due to infrastructure issues, this is basically a slighter drop, because we are talking about traditional channels focused on the segment self-build“, explained Guadalupe Rosazza, TMS consultant.