Seal a bargain: Expanding product ranges and improved sourcing methods aid revenue growth

The Discount Department Stores industry has 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 sentiment has prompted many households to reduce expenditure on discretionary purchases. Many value-conscious consumers have increasingly opted to buy cheaper alternative products offered by discount department stores. Industry revenue is expected to increase at an annualised 1.9% over the five years through 2018-19, to total $11.1 billion. This trend includes anticipated growth of 1.8% in the current year, supported by rising discretionary incomes.Price is the primary basis of competition among industry operators...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 14-19
1.9%
Forecast Growth 19-24
Profit
Employment
56,046
Businesses
63
Market Share of Companies

Industry Threats & Opportunities

  • Firms have gained a greater share of consumer dollars at the expense of their up-market rivals
  • The popularity of online retail has limited the industry’s expansion over the past five years
  • Stores with limited scope for economies of scale are likely to face intense price competition
  • Industry Report - Industry Key Buyers Chapter

    The Discount Department Stores industry has a high level of market share concentration, with the industry's two major players expected to account for over 80% of revenue in the current year. 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 high barriers to entry are likely to make it difficult for new entrants to effectively compete to attract customers away from Kmart and Big W...purchase to read more.

    Additional Insights for the Discount Department Stores Industry

    IBISWorld has determined the most important Key Success Factors for the Discount Department Stores 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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    What's in this report

    What is the Discount Department Stores Industry?

    Retailers in this industry sell various consumer goods at discounted prices. Discount department stores typically purchase products from wholesalers and manufacturers and then sell these products on to consumers.

    Industry Products
  • Clothing, footwear and accessories
  • Printed materials and stationery
  • Cosmetics and toiletries
  • Household appliances and consumer electronics
  • Toys and games
  • Furniture, housewares and textile goods
  • Other products
  • Industry Activities
  • Department store operation
  • Clothing 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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
  • Household appliances and consumer electronics
  • Toys and games
  • Printed materials and stationery
  • Cosmetics and toiletries
  • Other products
  • Chart: Discount Department Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54 years
  • People aged 55 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
    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
    Wesfarmers Limited, Woolworths Group Limited,
  • Table: Wesfarmers Limited - financial performance
  • Table: Woolworths Group Limited - financial performance

  • 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
    Table: Industry Data for the Discount Department Stores Industry
    Includes:
  • 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
    Bricks-And-Mortar
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Discount Department Stores market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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