Puffed out: The declining smoking rate in Australia has caused revenue to lose steam

The Tobacco and Other Store-Based Retailing industry is highly diverse. Industry operators retail a variety of specialised products including tobacco, pets, pet supplies, swimming pools, spas, adult paraphernalia and art supplies. Several consumer, economic and regulatory factors have influenced the industry over the past five years. While some of these factors have been beneficial to certain retailers, they have negatively affected others. For example, increasing tobacco excises weakened demand among tobacconists but provided a boost to duty-free store operators that offer tobacco products, due to the removal of hefty tobacco taxes at these establishments. Consequently, industry performance has been mixed, with growth in some segments offset by declines in others...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Increasing regulatory pressures relating to tobacco have limited industry growth
  • Mounting competition from supermarkets has hindered the industry’s performance
  • Competitive pressure from supermarkets is anticipated to remain strong over the next five years
  • Industry Report - Industry Investment Chapter

    The Tobacco and Other Store-Based Retailing industry is characterised by low capital intensity. For every dollar spent on capital, an estimated $14.18 is spent on wages. Industry depreciation costs are low and are generally derived from long-term assets such as cash registers, store fixtures and fittings, and computer software programs. Although the industry does not require expensive equipment, technological advancements have led to better stock control and cost efficiencies over the past five years.The industry is labour intensive and employees are required for a variety of functions including shelf stocking, merchandise display, inventory management, customer service and transaction processing. Ind...purchase to read more.

    Additional Insights for the Tobacco and Other Store-Based Retailing Industry

    IBISWorld has determined the most important Key Success Factors for the Tobacco and Other Store-Based Retailing are:

  • Ability to franchise operations
  • Experienced work force
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Real household discretionary income in the Tobacco and Other Store-Based Retailing industry impact industry performance..

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    What's in this report

    What is the Tobacco and Other Store-Based Retailing Industry?

    Industry operators are primarily engaged in retailing tobacco and a range of specialised products including pets, pet supplies, swimming pool and spa equipment, and adult paraphernalia. The industry also includes products sold at duty-free stores. Products are sourced from wholesalers or direct from manufacturers and are sold via retail outlets to the general public. The industry excludes generalised retailers such as supermarkets, hardware stores and department stores.

    Industry Products
  • Tobacco products
  • Pets and pet supplies
  • Duty-free goods
  • Swimming pool and spa equipment
  • Adult products
  • Other products
  • Industry Activities
  • Tobacco product retailing
  • Duty-free store operation
  • Adult product retailing
  • Pet retailing
  • Pet supplies retailing
  • Musical instrument retailing
  • Art supply retailing
  • Swimming pool and spa equipment retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Real household discretionary income
  • Demand from supermarkets and grocery stores
  • Smoking rate

  • Current Performance
  • Competitive pressures
  • Declining smoking rate
  • Consumer trends
  • Consumer sentiment
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Tobacco products
  • Growing segments
  • Structural environment
  • Table: Tobacco and Other Store-Based Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tobacco and Other Store-Based Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Hardware Wholesaling
  • Prepared Animal and Bird Feed Manufacturing
  • Tobacco Product Wholesaling

  • Products & Services
  • Tobacco products
  • Pets and pet supplies
  • Duty-free goods
  • Adult products
  • Other products
  • Swimming pool and spa equipment
  • Chart: Tobacco and Other Store-Based Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 54
  • Consumers aged 15 to 34
  • Consumers aged 55 and over
  • Chart: Major Market Segmentation for the Tobacco and Other Store-Based Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Tobacco and Other Store-Based Retailing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tobacco and Other Store-Based Retailing Industry

  • Industry Globalization
    TSG Franchise Management Pty Ltd, Greencross Limited,
  • Table: TSG Franchise Management Pty Ltd - financial performance
  • Table: Greencross Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tobacco and Other Store-Based Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tobacco and Other Store-Based Retailing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Adult Products
  • Explicit toys and other paraphernalia typically used in sex acts.
  • Excise
  • A tax levied on particular goods when being sold within a specified location, such as a country or state.
  • Receivership
  • When an institution or enterprise is held by a person who has custodial responsibility for the property of others. This situation is common when a company enters bankruptcy.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tobacco and Other Store-Based 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 Tobacco and Other Store-Based 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 Tobacco and Other Store-Based 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 Tobacco and Other Store-Based Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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