Industry Analysis & Industry Trends
The Clothing Retailing industry has faced several tough years, with cautious consumer spending, intense competition, higher rent costs and the aftermath of the global financial crisis driving down revenue and profit margins. Over the five years through 2013-14, industry revenue is expected to contract at a compound annual rate of 0.9%.
Following the global financial crisis, consumers became more cautious about spending and the private savings rate reached record highs. Retail figures suggest that consumers remained nervous about the climate of the global economy in 2010-11 and 2011-12. However, improved conditions have led to revenue growth over the past two years. As consumer sentiment and disposable incomes increase, revenue is expected to grow by 2.4% in 2013-14 to reach $12.8... purchase to read more
Industry Report - Industry Investment Chapter
The Clothing Retailing industry displays a low level of capital intensity. IBISWorld estimates that for every dollar spent on capital costs, $8.68 is spent on wages. The industry is typically labour intensive as employees are required to stock shelves and display merchandise, provide customer service, process transactions and manage inventory. Staff are also involved in a number of administrative and back office duties. As the industry faces intensifying competition from online stores, many retailers are attempting to differentiate their products and brands by offering a superior level of customer service and assistance. This results in increased employee costs as operators spend more on training and incentive programs... purchase to read more