Industry Analysis & Industry Trends
The Bread and Cake Retailing industry has performed modestly over the past five years. Industry revenue is anticipated to grow at a compound annual rate of 1.8% over the five years through 2015-16. Fierce competition among industry players and from external sources has hurt the industry. This has resulted in store closures and financial troubles among some of the industry's largest players. Industry revenue is forecast to rise 1.7% in 2015-16, to reach $753.4 million. The industry's average profit margin has trended upwards over the past five years, although this is largely a recovery from low margins in 2010-11.
Disposable incomes and consumer sentiment dictate consumer spending on bread and cake products, which has influenced industry revenue... purchase to read more
Industry Report - Industry Investment Chapter
The industry is moderately capital-intensive. 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 $6.79 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