Insights into the forces reshaping home improvement retail
TCS Global Retail Outlook Key Findings Report – Home improvement and hardware
Navigate the AI era with confidence. TCS helps you turn AI into a strategic partner that empowers talent, reimagines processes, and accelerates business transformation.
We deliver excellence and create value for customers and communities - everyday. With the best talent and the latest technology we help customers turn complexity into opportunities and create meaningful change.
Point of views, research, studies - on the latest themes - to help you expand your knowledge and be future ready.
At TCS, we believe exceptional work begins with hiring, celebrating and nurturing the best people — from all walks of life.
TCS Global Retail Outlook Key Findings Report – Home improvement and hardware
You have these already downloaded
We have sent you a copy of the report to your email again.
In 2026, success in home improvement and hardware retail will depend on balancing growth, resilience, and execution at scale.
The sector is navigating a high-friction environment shaped by inflation, supply chain volatility, labour pressure, and rising expectations for seamless customer experiences. Retailers must continue to grow while protecting margins, strengthening supply chains, and improving decision speed.
This report draws on insights from the TCS Global Retail Outlook, focusing on the home improvement and hardware subsector. It highlights where pressure is intensifying and the capabilities that will define competitive advantage, including operational agility, data-driven execution, and the effective use of AI across customer and supply chain workflows.
Fashion retailers are using AI to bridge customer engagement with operational execution at scale.
AI priorities in the sector emphasise both assisted shopping and margin discipline. Key initiatives include AI-powered chatbots for guided discovery, hyper-personalised recommendations, and supply chain optimisation.
Retailers are also investing in dynamic pricing, workforce planning, and inventory and demand forecasting to respond more effectively to volatility.
Rather than treating AI as a standalone programme, leading organisations are building integrated capability sets that connect demand signals to commercial decisions. This allows them to improve customer engagement while ensuring efficient fulfilment and stronger sell-through performance.
Key trend stats:
Loyalty is evolving into a core strategic input for home improvement retailers.
Rather than functioning purely as a marketing lever, loyalty programmes are becoming a critical source of customer insight that informs decisions across the business. Retailers are increasingly using loyalty data to guide how they engage customers, plan assortments, and design customer journeys.
This shift signals a move toward more integrated and insight-led operations, where customer understanding directly shapes commercial and operational strategies. However, many organisations are still working to fully embed loyalty insights into enterprise-wide decision-making.
Key stats:
The home improvement sector is entering a period defined by sustained economic and operational pressure.
Retailers are navigating a complex environment shaped by rising costs, supply disruptions, and ongoing workforce challenges. At the same time, they must continue to transform their operating models to become more agile, responsive, and digitally enabled.
While most organisations recognise the importance of resilience, relatively few consider their capabilities fully mature. The gap between ambition and execution highlights the need for stronger integration between technology investments, workforce readiness, and operational processes.