Cheap and cheerful: Improved global sourcing methods have aided industry revenue growth

IBISWorld’s Discount Department Stores market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.


Industry Threats & Opportunities

  • Discount department stores winning a greater share of the total retail dollar
  • The industry is projected to consolidate further over the next five years.

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    Industry Analysis & Industry Trends

    Discount department stores have performed well in a challenging retail environment over the past five years. Industry operators have gained a greater share of the total retail dollar at the expense of their mid-tier and up-market rivals. Volatile consumer confidence has prompted many households to scale back expenditure on discretionary purchases. Value-conscious consumers have increasingly opted to buy cheaper alternative products offered by discount department stores. As a result, industry revenue is projected to grow at an annualised 3.0% over the five years through 2016-17, to total $10.6 billion. Industry revenue is anticipated to increase by 3.7%...

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    What is the Discount Department Stores industry?

    The Discount Department Stores industry has a high level of market share concentration, with the industry's two major players accounting for about 88.8% of revenue in 2016-17. Kmart and Big W operate extensive store networks throughout Australia, in both metropolitan and regional areas. The dominant presence of these two retailers and their superior economies of scale make it difficult for new players to enter the industry, particularly as industry operators require large amounts of floor space in several locations to compete effectively. Market share concentration is expected to remain high over the next five years. The industry's strong barriers to entry are likely to make it difficult for new entrants to effectively compete to attract customers away from Kmart and Big W...

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    Additional Insights for the Discount Department Stores Industry

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

  • Ability to control stock on hand
  • Effective cost controls
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Discount Department Stores industry impact industry performance..

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    New Zealand Special Report

    Products & Brands

    Major products in this industry
    Clothing, footwear and accessories
    Books and stationery
    Cosmetics and toiletries
    Household appliances and consumer electronics
    Toys and games
    Furniture, housewares and textile goods
    Examples of brands in this Industry
    Big W

    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 discretionary income
  • Consumer sentiment index
  • Demand from online shopping
  • Trade-weighted index

  • Current Performance
  • Industry structure
  • Product sourcing
  • Competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry participation
  • Profit
  • Competition
  • Table: Discount Department Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Discount 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
  • Hardware Wholesaling
  • Household Appliance Wholesaling

  • Products & Services
  • Clothing, footwear and accessories
  • Furniture, housewares and textile goods
  • Toys and games
  • Household appliances and consumer electronics
  • Books and stationery
  • Cosmetics and toiletries
  • Other
  • Chart: Discount Department Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54 years
  • People aged 55 years and over
  • People aged 15 to 34 years
  • Chart: Major Market Segmentation for the Discount Department Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Discount Department Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Discount Department Stores Industry

  • Industry Globalization
    Major Companies
    Wesfarmers LimitedWoolworths Ltd
  • Table: Wesfarmers Limited - financial performance
  • Table: Woolworths Ltd - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Discount 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 Discount Department Stores Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • A store that has a physical presence and location, as opposed to an online-only retailer that operates via a website.
  • Point Of Sale
  • Technology that incorporates a cash register with an electronic payment system to allow instantaneous transactions through one device.
  • Radio Frequency Identification
  • Radio frequency identification (RFID) is a wireless technology commonly used to transfer information for tracking and identification purposes.
  • 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 Discount 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 Discount 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 Discount 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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