Industry Analysis & Industry Trends
Newspaper and book retailers have faced tough trading conditions over the past five years due to a decline in the sale of printed publications and growth in the volume of sales lost to international e-tailers. Industry trading conditions have been affected by competition from external operators, including supermarkets and department stores. The challenging operating landscape has culminated in industry revenue declining. Revenue is estimated to drop at an annualised 5.7% over the five years through 2014-15. Consumer demand for newspapers has been influenced by trends in real household discretionary income, consumer sentiment, internet connections and the volume of shopping done via internet sites. Industry revenue is forecast to fall by 4.1% in 2014-15, to $4.1 billion... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a low level of capital intensity. For every dollar spent on wages, $0.07 is spent on capital. As a retail industry, labour costs are an integral part of daily operations. Employees are required to undertake a variety of tasks including customer service, store display and inventory control.
Capital equipment requirements for the industry are generally low and comprise the purchase of cash registers, point-of-sale systems, store fixtures and fittings. Over the past five years, there has been an increase in the number of retailers establishing internet sites to sell their merchandise online. The costs involved in establishing a website are regarded as being capital in nature, while maintenance of the website is more labour-related... purchase to read more