Overview of the Mexican Hardware Store Sector
Mexico boasts over 120,000 hardware stores, with 40% located in the central part of the country and another 40% spread across the Western and Northern regions. The widespread distribution of these stores has been a key strength for the sector in Mexico, and Expo Nacional Ferretera is actively promoting the opening of new hardware stores. Francisco Javier López, Product Manager at RX México, the organizing company of Expo Nacional Ferretera, shared with El Economista that approximately 6% of the 25,000 attendees annually are individuals interested in starting a hardware business. This number is expected to rise to 10% in the coming years, translating to over 2,000 people with the capital to invest in a hardware store.
The Future Hardware Store Model
In response to this growing interest, the 35th edition of Expo Nacional Ferretera, taking place from September 4 to 6 at Expo Guadalajara, will introduce the “Future Hardware Store” experience for the first time. This immersive display aims to showcase attendees the evolving model for businesses like hardware stores and tool shops in local neighborhoods.
According to RX México’s Product Manager, “There are more than 120,000 hardware stores in the country,” and “more than 90% of these stores operate using a traditional, counter-based model with poorly managed inventory and manual accounting.” He further explained that the primary challenge in the hardware industry is efficient storage, such as managing gas tanks and rain barrels. The “Future Hardware Store” project aims to address these issues by focusing on space optimization, product presentation, and creating a unique customer experience. The plan also includes integrating artificial intelligence to enhance business efficiency within three years.
Positive Expectations
Francisco López mentioned that among the exhibitors from 13 countries participating in Expo Nacional Ferretera this year, there is confidence to make significant investments in Mexico despite economic uncertainty caused by the United States’ trade policies.
RX México’s director highlighted that Lowes, a U.S.-based company operating the home center model, will attend Expo Ferretera 35 in search of Mexican and Latin American suppliers. This demonstrates the credibility of Mexican brands and the quality that these companies seek, as well as the impact of U.S. government decisions on the hardware sector.
López also noted that after experiencing double-digit growth during the pandemic due to home remodeling and adaptation as makeshift schools and offices, the market has stabilized. A growth rate above 6% is anticipated for this year’s closing.
Increasing Attendance
Expo Ferretera 35 will feature over 1,000 exhibitors across 60,000 square meters of display space. Exhibitors will represent 13 countries, including Brazil, Colombia, the United States, Italy, China, Taiwan, India, and Germany. An estimated 26,000 attendees are expected.
To encourage the opening of new hardware stores, entry to Expo Ferretera 35 is free for the public upon advance registration at www.expoferretera.com.mx.
Key Questions and Answers
- What is the current state of the hardware store sector in Mexico? There are over 120,000 hardware stores in Mexico, with a widespread distribution across the country. The sector’s strength lies in its wide reach.
- What is Expo Nacional Ferretera’s role in the hardware store sector? Expo Nacional Ferretera actively promotes the opening of new hardware stores and aims to modernize existing ones through initiatives like the “Future Hardware Store” experience.
- What challenges does the hardware store sector face? The primary challenge is efficient storage and inventory management, which the “Future Hardware Store” project aims to address.
- What are the expectations for hardware store growth in Mexico? Despite economic uncertainty, there is confidence among exhibitors to invest in Mexico. The sector anticipates growth above 6% this year.
- What can attendees expect from Expo Ferretera 35? Attendees can expect over 1,000 exhibitors from 13 countries, a free entry for the public with advance registration, and an immersive “Future Hardware Store” experience.
