Industry Analysis & Industry Trends
On first glance, the Bread and Cake Retailing industry seems to be struggling. Industry revenue is expected to post compound annual growth of just 0.4% over the five years through 2013-14 due to increasing competition from operators in other industries. However, revenue has grown consistently since 2011-12. Rising disposable incomes and improving consumer sentiment have driven revenue growth. Furthermore, many retailers have altered their product offerings in response to increasing competition. Rising demand for premium products that attract higher prices and profit margins has driven industry performance over the past three years. This premium trend will continue to benefit the industry in 2013-14, with revenue forecast to increase by 1.2% to $795.5 million... purchase to read more
Industry Report - Industry Investment Chapter
The industry displays a low level of capital intensity. Capital expenses for industry operators include refrigerators, freezers, food warmers and display cabinets. Aside from initial capital expenditure and replacement of old or faulty equipment, operators do not need to continuously outlay funds for capital. Furthermore, operators are able to minimise capital costs by leasing equipment rather than purchasing it. Consequently, the industry is highly labour intensive.
IBISWorld estimates that for every dollar invested in capital, $9.28 is spent on labour. Operators need to employ service staff to assist customers with their purchases and provide advice regarding ingredients and dietary issues... purchase to read more