Overview

On the line: Increasing competition from online retailers has constrained revenue growth

The Department Stores market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Industry Analysis & Industry Trends

Operators in the Department Stores industry have struggled over the past five years due to a weak retail environment and low consumer sentiment, which followed instability in global financial markets. Consumers have become increasingly price conscious and reluctant to spend their discretionary income, instead preferring to pay down debt and boost their savings. Industry revenue is expected to grow by an annualised 1.0% over the five years through 2016-17, to total $19.5 billion. Uncertain economic conditions and weak consumer sentiment in 2016-17 are expected to contribute to a subdued 1.0% increase in industry revenue, as households constrain discretionary spending.

The Department Stores industry is highly concentrated, with the top four players accounting for 93.1%...

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Industry Report - Industry Investment Chapter

The Department Stores industry displays a moderate level of capital intensity. IBISWorld estimates that for every dollar spent on capital costs, $7.14 is spent on wages. The industry is predominantly labour-intensive. Department stores require a high number of staff to display merchandise, serve customers and process sales. Furthermore, employees are required for numerous administration and back-office duties.

As the industry continues to face increased pressure from online stores, many department stores are attempting to offer superior service and assistance to improve customer experience and differentiate themselves from their competitors. This has led to an increase in wage costs as a share of revenue as retailers spend more on employee training programs and incentives.

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Industry Products

What is the Department Stores Industry?

Department stores retail fabrics, soft goods, clothing, chinaware, glassware, housewares, perfumes, cosmetics, toiletries, furniture and household appliances. Goods are normally sold through separate instore departments. Department stores purchase products from wholesalers and manufacturers and sell them to consumers, generally without changing the products. They also undertake activities like customer service, product merchandising, advertising, inventory control and cash handling.

Industry Products
Clothing, footwear and accessories
Household appliances and consumer electronics
Furniture, housewares and textile goods
Cosmetics and toiletries
Toys and games
Books, magazines and other printed material
Other products
Industry Activities
Department store operation
Clothing, footwear and accessories retailing
Furniture retailing
Kitchenware, china, glassware and other housewares retailing
Textile goods retailing
Electrical, electronic and gas appliances retailing
Perfumes, cosmetics and toiletries retailing

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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