Industry Analysis & Industry Trends
The Watch and Jewellery Retailing industry is expected to post static annualised revenue growth over the five years through 2014-15. Industry revenue posted weak growth in 2009-10 before contracting in 2010-11 and 2011-12. Despite growth in discretionary income and a fall in interest rates, revenue growth during this period was negatively affected by a combination of high world gold prices, the flow-on effects from the collapse of global financial markets and a drop in consumer sentiment. Industry trading conditions improved in 2012-13 and 2013-14 and revenue is forecast to rise by 2.2% over 2014-15 to reach $3.4 billion.
Revenue growth during this period has been hampered by the challenging conditions faced by operators... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a low level of capital intensity. For every dollar spent on wages, $0.09 is spent on capital. As a service industry, wages are a fundamental part of daily operations. Employees are required to undertake a number of duties, including customer service, product displays and inventory management.
Albeit from a low base, the industry's capital intensity has increased over the past four decades due to the introduction and installation of computerised point of sale (POS) systems. This has simplified labour tasks and minimised employee mistakes. POS systems have also allowed operators to computerise their inventories, which has improved stock control and cost efficiencies... purchase to read more