Industry Analysis & Industry Trends
The Footwear Retailing industry has lost its footing in the past five years. The industry is highly dependent on economic conditions and consumer confidence, both of which have been adversely affected by the financial crisis that commenced in 2008. Revenue is expected to contract by 3.3% per annum over the five years through 2012-13. During 2012-13, revenue is forecast to slip by 4.3% to $3.1 billion. The industry has been plagued by the same problems facing most retailers in Australia. Weak consumer sentiment and increased competition have contributed to the decline of the Footwear Retailing industry.
The industry has been facing increasing competition, both internally and externally... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity in the industry is low as the industry is service-centric and revenue is more strongly correlated to the level of labour. Retailers in the industry need to provide high levels of customer service in order to assist customers with trying on shoes and finding the right size. Low margin retailers, such as Payless Shoes, do not invest considerable resources in providing specialised footwear training for staff. Other retailers, however, are increasingly willing to spend on employee training in order to differentiate their brands through customer service and overall store experience.
Capital expenditures in the industry are mainly made towards cash registers, computer systems, shelving and displays. The industry does not generally require a high level of technology... purchase to read more