Overview

Trouble in store: Increasing competition from online retailers has constrained revenue growth

IBISWorld’s Department Stores 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.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Major players have launched online platforms as a new avenue for revenue growth
  • Volatile consumer sentiment and subdued discretionary spending have resulted in excess stock
  • Increased industry consolidation is expected due to rising competitive pressures

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    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 fall at an annualised 0.9% over the five years through 2017-18, to total $18.3 billion. Uncertain economic conditions and weak consumer sentiment in 2017-18 are expected to contribute to a 2.7% decline in industry revenue, as households constrain discretionary spending.

    The Department Stores industry is highly concentrated, with the top four players accounting for 95.5% of industry revenue...

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    Industry Report - Industry Products Chapter

    The Department Stores industry includes two distinct types of operators: up-market department stores and discount department stores, which both sell a range of products. Industry products can be segmented into seven groups: clothing, footwear and accessories; furniture, housewares and textile goods; household appliances and consumer electronics; cosmetics and toiletries; toys and games; books, magazines and other printed material; and other goods.

    Clothing, footwear and accessories

    The clothing, footwear and accessories segment includes women's, men's and children's clothing; sleepwear; lingerie; personal accessories such as hats, jewellery and handbags; and shoes. This is the industry's largest product segment, accounting for an estimated 35.2% of total revenue. Thi..

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    Additional Insights for the Department Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Department Stores Industry are

  • Ability to control stock on hand
  • Superior financial management and debt management
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Demand from online shopping and Real household discretionary income in the Department Stores industry impact industry performance..

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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 Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from online shopping
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from clothing, footwear and personal accessory retailing
  • Demand from electrical and electronic goods retailing
  • Demand from furniture, floor coverings, houseware and textile goods retailing

  • Current Performance
  • Profit and wages
  • Competition
  • Exclusive labels
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry participation
  • Profit and wages
  • Growing competition
  • Table: Department Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Department Stores Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Clothing Wholesaling
  • Cosmetics and Toiletry Wholesaling
  • Furniture and Floor Covering Wholesaling
  • Household Appliance Manufacturing
  • Household Appliance Wholesaling
  • Men's and Boys' Wear Manufacturing
  • Sleepwear, Underwear and Infant Clothing Manufacturing
  • Wicker and Fibreglass Furniture Manufacturing
  • Women's and Girls' Wear Manufacturing

  • Products & Services
  • Clothing, footwear and accessories
  • Furniture, housewares and textile goods
  • Household appliances and consumer electronics
  • Cosmetics and toiletries
  • Toys and games
  • Books, magazines and other printed material
  • Other products
  • Chart: Department Stores 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 Department Stores 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
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Department Stores

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Department Stores Industry

  • Industry Globalization
    Major Companies
    Wesfarmers LimitedWoolworths LtdMyer Holdings LimitedOsiris Holdings Pty Ltd
  • Table: Wesfarmers Limited - financial performance
  • Table: Woolworths Ltd - financial performance
  • Table: Myer Holdings Limited - financial performance
  • Table: Osiris Holdings Pty Ltd - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Department Stores 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 Department Stores 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
    Ecommerce
  • The sale and purchase of goods transacted via the internet.
  • Radio Frequency Identification (Rfid)
  • This system tracks products through the supply chain by releasing signals from a chip that is inserted in the product at the manufacturing stage.
  • Wholesale Bypass
  • When buyers bypass or skip wholesalers to buy directly from manufacturers and thereby cut costs.
  • Why buy this report?

    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 Department Stores:
    • 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 Department Stores 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 Department Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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