Obstacles in the residential real estate sector have led to struggles in the home improvement and hardware retail sector in the last three years.
The real estate sector has struggled from a combination of high home prices, elevated mortgage rates, and low buyer demand that has slowed the housing market.
Those obstacles contributed to a 2.7% decline in existing home sales in June 2025, the National Association of Realtors reported.
With fewer homes being built or renovated, home improvement and hardware retailers have had reduced demand for their products.
Major home improvement retail chains Home Depot, Lowe’s, and Amazon dominate the industry, leaving a smaller percentage of sales for the remaining retailers.
When it comes to sales in the first quarter of 2025, Home Depot had about 27.2% of the market, Lowe’s captured 17%, and Amazon attracted 15.6% of the market, according to Numerator’s Home Improvement Tracker.
Top home improvement chains for sales Q1 2025:
- Home Depot, 27.2% of market
- Lowe’s, 17% of market
- Amazon, 15.6% of market
But when you consider the America’s Most Trusted study, a study of the most popular home improvement chains conducted by Lifestory Research for 2025, Home Depot finished No. 1 with a five-star ranking, Lowe’s was No. 2, also with a five-star ranking, Ace Hardware finished third with a four-star rating, and Costco was fourth with a three-star rating.
America’s ‘Most Trusted’ home improvement chains:
- #1 Home Depot
- #2 Lowe’s
- #3 Ace Hardware
- #4 Costco
Several smaller home improvement retailers have faced economic issues and closed their doors. In some cases, it’s time for the owners to retire and sell the business if they can.
Image source: True Value
Kreuger’s True Value closes 159-year-old store
One hardware store that is part of True Value’s cooperative, iconic Kreuger’s True Value, revealed that it will close its Neenah, Wis., location permanently in the next three to four months after completing a retirement/liquidation/going-out-of-business sale, which began on July 22.
Kreuger’s owners Jim and Brian Webb decided to retire and attempted to sell the business, but could not complete a sale with potential buyers.
The owners did not indicate a reason for their inability to sell the business, but lower demand for home improvement and hardware may have made it more difficult to sell.
The owners will liquidate and wind down the business over the next 12 to 16 weeks, according to the company’s letter to the state.
Kreuger’s True Value sent a letter to the Wisconsin Department of Workforce Development on July 17 informing the agency that the store’s 37 employees will be terminated after the going-out-of-business sale is completed.
Hardware cooperative True Value, which competes with the home improvement heavyweights and head-to-head with Ace Hardware, did not rank in Numerator’s and Lifestory’s surveys.
True Value Company, which provides wholesale hardline products to 4,500 independently owned retailers, filed for Chapter 11 bankruptcy protection on Oct. 14, 2024, and sold its assets to hardware, lumber, and building materials cooperative Do it Best Corp.
Kreuger’s True Value, which opened in the year after the Civil War in 1866, is one of the 4,500 independently owned retail stores that is part of a retail network that purchases wholesale hardware from True Value Company and operates under the brand name.
Kreuger’s True Value has operated out of its current location since 1972, where it had relocated from a downtown Neenah, Wis., store.
The store was founded by William Kreuger in 1866 and is being operated by its fifth generation of owners, WBAY-TV reported.
More closings:
- Major furniture manufacturer closes down, no bankruptcy
- Iconic pizza chain’s franchisees close multiple restaurants
- Iconic retail chain closing over 100 stores in bankruptcy
Why is Kreuger’s True Value closing?
- Owners Jim and Brian Webb are retiring and could not find a buyer for the business.
Some more specialized home improvement retailers are seeking sales of their assets or are closing down their business after filing for bankruptcy.
The parent company of home improvement retailer Gardener’s Supply Company, America’s Gardening Resource Inc., filed for Chapter 11 bankruptcy protection on June 20, 2025, seeking to sell its assets to a stalking-horse bidder as it faces financial distress.
Home improvement retail and wholesale company Mosaic Companies LLC, a leader in the surfaces industry for luxury wall and mosaic tile, floor tile, and stone slab, on July 8, 2025, filed for Chapter 11 bankruptcy protection with plans to sell certain of its assets and wind down and liquidate other remaining businesses.
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