Not so good: Revenue fluctuates with volatile consumer sentiment and online competition

The Consumer Goods Retailing subdivision has struggled with tough retail conditions over the past five years. Weak economic growth and volatile consumer sentiment due to unstable financial markets resulted in a tense time for subdivision operators, as households scaled back discretionary expenditure on non-essential goods. The household savings ratio remained high over the period, indicating that consumers continued to be cautious with their spending. This contributed to a fall in retail demand for photographic equipment, video games and recorded music, newspapers and books, and stationery goods.A growing trend towards bargain hunting has developed as consumers have become more informed about purchases and the value of the products they buy...read more.

Industry Statistics & Market Size
Revenue
$169bn
Annual Growth 13-18
0.7%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
705,302
Businesses
75,503
Market Share of Companies

Industry Threats & Opportunities

  • Subdivision operators have been subject to intensifying competition from online-only retailers
  • Domestic companies have increasingly migrated online by developing multichannel sales platforms
  • Online shopping and auction websites will influence sales across individual product categories

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    Industry Report - Industry Key Buyers Chapter

    The Consumer Goods Retailing subdivision is characterised by a low level of market share concentration, with the top four players accounting for less than 40% of revenue. Increasing competition, cost pressures and the mature nature of the consumer goods market have heightened concentration over the past five years.Growth in competition has stemmed from retailers seeking a larger share of the consumer market. As a result, merger and acquisition activity, and consolidation have been on the rise. By consolidating the number of players in an industry, operators have increased their relative market share.Concentration varies among industries. For...purchase to read more.

    Additional Insights for the Consumer Goods Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Consumer Goods Retailing Industry are

  • Attractive product presentation
  • Close monitoring of competition
  • Ability to control stock on hand

    • IBISWorld analysts also discuss how external factors such as Real household disposable income and Consumer sentiment index in the Consumer Goods Retailing industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Consumer Goods Retailing Industry?

    Subdivision operators sell personal and household items such as clothing, furniture, appliances, computers and garden supplies. This does not include revenue from sales of food, fuel, alcohol or motor vehicles. Retailers purchase stock from manufacturers or wholesalers and then sell these products to the public. Although online sales generated by traditional retailers are included in the subdivision, revenue earned by online-only retailers is excluded.

    Industry Products
  • Household goods
  • Clothing, footwear and personal accessories
  • Other consumer goods
    • Industry Activities
  • Department store operations
  • Clothing retailing
  • Domestic appliance retailing
  • Furniture retailing
  • Hardware retailing
  • Computer and software retailing
  • Pharmacy operations
  • Toy and game retailing
  • Footwear retailing
  • Newspaper, book and stationery retailing
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Consumer sentiment index
  • Demand from online shopping
  • Trade-weighted index

    • Current Performance
  • Consumer demand
  • Shopping trends
  • Household incomes
  • Chart: Revenue Growth

    • Industry Outlook
  • Trading conditions
  • Profit margins
  • Table: Consumer Goods Retailing Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Consumer Goods Retailing Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Consumers

    • Key Selling Industries
  • Manufacturing
  • Retail Property Operators
  • Telecommunications Services
  • Wholesale Trade

    • Products & Services
  • Household goods
  • Other consumer goods
  • Clothing, footwear and personal accessories
  • Chart: Consumer Goods Retailing Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • Chart: Major Market Segmentation for the Consumer Goods Retailing Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Consumer Goods Retailing

    • Basis of Competition
  • Internal
  • External

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Consumer Goods Retailing Industry

    • Industry Globalization

    Major Companies

    Wesfarmers Limited, Woolworths Group Limited,
  • Table: Wesfarmers Limited - financial performance
  • Table: Woolworths Group Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Consumer Goods Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Consumer Goods Retailing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Point Of Sale (Pos)
  • Technology that combines a cash register and an electronic payment system in one device.
    • Radio Frequency Identification (Rfid)
  • An object or tag that is applied to a product, person or animal for the purpose of tracking and identification using radio waves.
    • Wholesale Bypass
  • A trend whereby the wholesaler is bypassed in the supply chain, such as when retailers purchase directly from the manufacturer.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Consumer Goods Retailing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Consumer Goods Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Consumer Goods Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Consumer Goods Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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