Industry Analysis & Industry Trends
Kitchen and cookware stores in Australia have dished out hot and cold results during the past five years. Industry performance deteriorated in 2008-09 as weak economic conditions eroded consumer sentiment and household spending. Despite this, demand was bolstered by a strong uptake in cooking activities by Australians thanks to the popularity of various TV cooking programs and the desire to cook and eat more healthily. As older people tend to cook more of their meals at home, an ageing Australian population is expected to have driven revenue growth in the industry as well. These factors are expected to drive revenue growth of 2.7% in 2013-14.
Australians have been spending more on their houses and kitchens... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity in the industry is low. On average, an operator spends $13.95 on labour for every dollar spent on capital costs. Retail operations generally do not require a high level of capital expenditure as operators only need basic equipment such as cash registers and barcode scanners in their stores. In addition, the level of capital intensity has been declining during the past five years. Operators have been placing more emphasis on improving customer service by hiring more knowledgeable and experienced staff. This raises overall labour costs, further dwarfing capital expenditure in the industry... purchase to read more