Industry Analysis & Industry Trends
Lingerie stores have endured a tough retail economy over the past five years. Expenditure on lingerie fell in the years immediately following the global financial crisis, due to a decline in consumer sentiment and higher savings rates. While consumers continued to demand and require necessities such as bras and underpants, preferences shifted towards affordable basic lingerie items over more expensive and luxurious high-end products. The subsequent change in consumer buying patterns led to a reduction in industry revenue as consumers began shopping at large discount retailers, mass merchandisers and online sites rather than in specialist lingerie stores. A... 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. The industry's low capital intensity is due to the relatively labour-intensive environment and minimal need for machinery and equipment. Operators require staff to carry out a number of tasks including store display, processing customer purchases and inventory control.
Capital expenditure for the industry includes the cost of establishing new premises through buying the freehold or entering a lease agreement with the landlord. In generally, stores are usually rented, not owned, as this reduced the initial capital outlay for operators. Other items such as fixtures, fittings and point-of-sale systems affect the capital intensity of the industry... purchase to read more