Home Centers Revenue Benchmarks
The average home centers business in the United States generates $96.2M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 1,515 home centers businesses in the U.S., employing 749,421 workers with an average profit margin of 4.0%. The average employee in this industry earns $36K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Home Centers Business Actually Do?
Big-box home improvement retailers (Home Depot, Lowe's, Menards) selling everything for construction and home repair — lumber, appliances, tools, garden.
Who buys: DIY homeowners, contractors, remodelers.
Average Revenue
$96.2M
per year
Profit Margin
4.0%
industry average
Revenue / Employee
$195K
per year
Total Businesses
1,515
in the US
Est. Owner Income
$3.8M
small business avg
Labor Cost
14.0%
of revenue
Avg Employee Wage
$36K
per year (BLS)
Market Saturation
0.5
firms per 100K people
How Much Do Home Centers Charge?
Big-box home improvement (Home Depot, Lowe's) runs 33–38% gross margin on high volume.
| Service | Typical range |
|---|---|
Building materials markup | 15–30% |
Appliances markup | 18–25% |
Garden/nursery markup | 35–55% |
Installation services markup | 20–40% over subcontractor cost |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete home centers business plan
A 12-section data-backed business plan for a home centers business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the home centers industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Cost of goods sold | $61 | $59.2M | Wholesale cost of merchandise purchased for resale. Retail's biggest expense. |
Wages & benefits | $14 | $13.5M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $8 | $7.9M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $3.9M | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $8 | $7.9M | Utilities, POS fees, shrinkage, insurance, store maintenance. |
Net profit | $4 | $3.8M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
4.62%
openings/year
Closure Rate
4.43%
closings/year
Net Job Growth
-0.87%
annual
Businesses Closed
1,831
in 2023
Firm Count Trend
Should You Start a Home Centers Business?
Startup Cost
$75K – $400K
Break-Even
1 months
5-Year Survival Rate
48.0%
Related Industries
Frequently Asked Questions
- What does a home centers business do?
- Big-box home improvement retailers (Home Depot, Lowe's, Menards) selling everything for construction and home repair — lumber, appliances, tools, garden. DIY homeowners, contractors, remodelers.
- How much do home centers charge?
- Big-box home improvement (Home Depot, Lowe's) runs 33–38% gross margin on high volume. See the pricing table above for typical rates by service type.
- How much does the average home centers make per year?
- The average home centers business generates $96.2M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $3.8M per year at a 4.0% profit margin.
- How many home centers businesses are there in the US?
- There are 1,515 home centers businesses operating in the United States, employing a total of 749,421 workers.
- How much does it cost to start a home centers business?
- Startup costs for a home centers business typically range from $75K to $400K, with a 5-year survival rate of 48.0%.
- What is the average salary in the home centers industry?
- The average employee in the home centers industry earns $36K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The home centers industry is relatively stable — with a net job growth rate of -0.9%. Entry and exit rates are balanced at 4.6% and 4.4% respectively.
Approximately 80% of home centers businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 1,831 firms in this industry closed permanently.
Employment & Wages
The average employee in the home centers industry earns $35,718/year. This is below the national average of ~$65K — typical for this sector. With 9,341 establishments employing 753,829 people, the typical business has about 81 employees. These tend to be larger operations requiring significant staffing investment.
Industry Trend (2000–2023)
The home centers industry has declined 38% since 2000 (from 48,298 to 30,090 firms).
See full historical statistics →Compare Home Centers revenue with other industries: