Industry Analysis & Industry Trends
The Bread and Cake Retailing industry has performed weakly over the past five years. Industry revenue is anticipated to post marginal annualised 0.3% growth over the five years through 2014-15. Fierce competition between players in the industry, and from external sources, have hurt the industry. This is evidenced by store closures and financial troubles among some of the industry's largest players. Industry revenue is forecast to rise 0.9% in 2014-15, to reach $759.6 million. The industry's average profit margin has trended upwards over the past five years, although this is largely a recovery from weak margins in 2009-10.
Disposable incomes and consumer sentiment have dictated consumer spending on bread and cake products, which has influenced industry revenue... 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.
For every dollar invested in capital, the average firm spends $9.91 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