50-year-old Home Depot rival hardware chain closes stores

A combination of macroeconomic challenges are expected to lead to softer home improvement sales for the remainder of 2025, according to a September Home Improvement Research Institute report.

The institute in June 2025 projected 3.4% growth in the overall home improvement market, but the growth projection has since been reduced to 2.5%.

Home improvement sales predictions shrink

The projection includes a lower prediction on consumer market sales to a 1.3% increase, down from 2.6% predicted in June, and a lower increase in the professional market sales to 4.6%, down from 4.9%.

The economic challenges that have been detrimental include consumer price inflation expected to rise to the 3% range in late 2025, housing starts dropping 5.3% in the second quarter of 2025, and a 2.7% drop in home sales in June, Hardware + Building Supply Dealer reported.

Mortgage rates are also hovering around 6.25%.

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 third quarter of 2025, Home Depot had about 29% of the market, Lowe’s captured 17%, and Amazon attracted 11.9% of the market, according to Numerator’s Home Improvement Tracker.

Top home improvement retailers Q3 2025

Home Depot, 29% of the market Lowe’s, 17% of the market Amazon, 11.9% of the market

The dominance of Home Depot, Lowe's, and Amazon has been too much for a lot of small, local hardware stores that have recently closed their doors permanently.

Iconic hardware stores permanently shutter

Carnation Ace Hardware, a 56-year-old hardware store in Carnation, Wash., closed its business forever on Oct. 25.

Another iconic hardware store, 117-year-old Ritter's True Value Hardware in Mechanicsburg, Pa., shut down permanently on Sept. 30.

Historic 159-year-old Kreuger's True Value hardware store in Neenah, Wis., revealed in July 2025 that it would permanently shut down its business in 12 to 16 months after a liquidation sale.

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.Jerry's Hardware & Rental is closing two stores in Minnesota.Shutterstock

Jerry's Hardware & Rental closes 2 stores

And now, iconic Minnesota-based hardware chain Jerry's Hardware & Rental, which is a part of the Do It Best retail cooperative, revealed that it will close two of its Twin Cities-area locations on Dec. 31, 2025.

Story Continues

Jerry's Hardware & Rental, which opened its first store over 50 years ago in Edina, Minn., said it will close its stores in Maple Grove and St. Louis Park, Minn., on the last day of 2025, CCX Media reported.

The company has not revealed a reason for the closings or released details about liquidation sales.

After closing those two locations, Jerry's Hardware will continue operating stores in Eden Prairie, Bloomington, and Edina.

Jerry's Hardware is owned by Edina-based Jerry's Enterprises, which also operates Jerry's Foods and several Cub grocery stores in Minnesota.

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The Minnesota hardware chain is part of the Fort Wayne, Ind.-based Do It Best Corp. hardware, lumber, and building materials cooperative, which purchased the hardware cooperative True Value Company, after it filed for Chapter 11 bankruptcy protection on Oct. 14, 2024.

True Value had provided wholesale hardline products to 4,500 independently owned retailers.

Hardware stores closing

Carnation Ace Hardware, Carnation, Wash., closed Oct. 25. Ritter's True Value Hardware, Mechanicsburg, Pa., closed Sept. 30. Kreuger's True Value, Neenah, Wis., closing est. November 2025. Jerry's Hardware & Rental, Maple Grove and St. Louis Park, Minn., Dec. 31, 2025.

Related: 69-year-old furniture chain goes out of business, no bankruptcy

This story was originally reported by TheStreet on Nov 7, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.

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