Industry Analysis & Industry Trends
Department stores faced a difficult few years due to consumer uncertainty following the global financial crisis, as consumers became reluctant to part with their hard-earned cash. The Department Stores industry will continue to face an uphill battle in 2012-13, as consumers remain cautious. Over the five years through 2012-13, industry revenue is expected to contract at an annualised 2.5% to $18.9 billion. Although consumer sentiment is on the rise and interest rates have fallen, consumers are expected to remain frugal, with industry revenue forecast to contract by 1.9% over 2012-13.
The Department Stores industry is characterised by a very high level of concentration, with the top four enterprises accounting for over 90% of industry revenue... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
Department stores have long been part of the Australian retail environment. Woolworths began in 1924 as a general merchandise retail operation. David Jones opened his first store in 1838 to sell imported merchandise, and the origins of Myer can be traced back to 1900 when Sidney and Elcon Myer opened their first Myer drapery store.
The maturity of the industry has been evident in the merger and acquisition activity of its major players over the past decade In mid-2006, Coles Myer sold Myer to a private consortium for $1.4 billion and in November 2007, Wesfarmers acquired Coles Group, which included Kmart and Target. In 2012, Harris Scarfe, a smaller industry player, was acquired by South Africa-based Pepkor... purchase to read more