Industry Analysis & Industry Trends
Toy and game retailers are expected to be affected by difficult trading conditions over the five years through 2012-13, with revenue declining by an annualised 0.5%. Despite consumer demand for electronic and interactive toys, trading conditions for industry operators have been tough due to mounting competition. Sales have also been affected by annual fluctuations in real household disposable income, interest rates, consumer sentiment, the relative share of the total Australian population aged 14 years or younger and seasonal trends. The tough trading environment faced by operators has affected industry profit, with operators experiencing downwards pressure on margins due to strong price-based competition.
Industry sales are projected to rise by a modest 1.5% over 2012-13, to $1.66... purchase to read more
Industry Report - Industry Investment Chapter
Operators in the Toy and Game Retailing industry are subject to a low level of capital intensity. Capital expenditure for this industry includes expenditure on equipment and technology used by operators as part of the retail sale process. Key examples include store fixtures and fittings, cash registers and POS systems. Albeit from a low base, the capital intensity of the industry increased over the past five years owing to growth in the number of retailers who have established web sites enabling them to sell merchandise online. Hence, despite the need for capital investment, operators in the industry have largely remained labour intensive, with wage costs expected to account for 2.1% of the market over the five years through 2012-13... purchase to read more