A Home Improvement Research Institute report predicts softer sales for the rest of 2025 due to economic challenges. The overall home improvement market growth projection dropped from 3.4% to 2.5%. Consumer market sales are expected to increase by 1.3%, and professional market sales by 4.6%. Mortgage rates are at 6.25%.

Major retailers like Home Depot, Lowe’s, and Amazon dominate the industry, leaving smaller retailers with less market share. Home Depot holds 29%, Lowe’s 17%, and Amazon 11.9% of the market. This dominance has led to the closure of many local hardware stores across the country.

Several historic hardware stores, including Carnation Ace Hardware, Ritter’s True Value Hardware, and Kreuger’s True Value, have permanently closed their doors due to reduced demand for home improvement products. The closure trend is impacting small businesses in the hardware retail sector.

Jerry’s Hardware & Rental, a Minnesota-based chain, will close two of its Twin Cities-area locations on December 31, 2025. The company has not disclosed reasons for the closures or details about liquidation sales. After shutting down these stores, Jerry’s Hardware will continue operating in other locations.

The closure of hardware stores, including Carnation Ace Hardware, Ritter’s True Value Hardware, Kreuger’s True Value, and Jerry’s Hardware & Rental, reflects the challenges faced by small businesses in the home improvement retail sector. Economic difficulties and market dominance by major retailers have contributed to the closure trend.

Read more at Yahoo Finance: 50-year-old Home Depot rival hardware chain closes stores