Industry Analysis & Industry Trends
The Delicatessens industry has struggled over the past five years. Poor consumer sentiment and spending during the years following the global financial crisis contributed to the industry's decline over the three years through 2009-10. Following this, strong competition from the major supermarkets added to the industry's pain. However, the rising premiumisation trend among some consumers has buoyed the industry over the past three years. Over the five years through 2014-15, industry revenue is projected to post annualised growth of 0.6%, to reach $908.3 million.
Supermarkets and grocery stores are the largest competitive threat to the industry. The price war that escalated in 2011 drew consumers away from specialised retailers and into supermarkets... purchase to read more
Industry Report - Industry Investment Chapter
The industry displays a moderate level of capital intensity. IBISWorld expects that for every dollar spent on wages, industry operators invest $0.16 in capital. Depreciation is used as a proxy for capital expenditure. The industry's capital intensity level has increased over the past five years, as indicated by its rising depreciation as a proportion of industry revenue. Temperature-controlled displays and commercial refrigerators are the industry's largest capital expenses, along with store fit-out when the delicatessen is first established. Capital expenses are higher for operators that own their store, rather than rent the premises.
The industry is highly reliant on labour. This trend is prevalent across the overwhelming majority of retail industries... purchase to read more