Left in the shade: Competition from online stores has constrained industry profitability

The Sunglasses Stores industry has faced a challenging market over the past five years, as weak consumer sentiment, constrained demand and fierce competition have placed significant pressure on revenue. Slow income growth and uncertainty regarding the state of the domestic economy have weakened consumer sentiment over the past five years, prompting households to become more cautious with discretionary spending, including spending on sunglasses. Industry revenue is expected to fall at an annualised 0.5% over the five years through 2017-18, to total $310.8 million. Revenue is forecast to decline by a further 3.0% in the current year, largely due to a fall in real household discretionary income and negative consumer sentiment...read more.

Industry Statistics & Market Size
Revenue
$311m
Annual Growth 13-18
-0.5%
Forecast Growth 18-23
Profit
Employment
2,679
Businesses
81
Market Share of Companies

Industry Threats & Opportunities

  • The popularity of online shopping has constrained industry profitability over the past five years
  • Improved customer service has been the focus for many industry players, increasing wage costs
  • External competition, largely from online stores, is expected to rise over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Sunglasses Stores industry exhibits moderate market share concentration due to the dominance of Luxottica Group S.p.A in the industry. There are no other major players in the industry, and Luxottica Group S.p.A is estimated to account for just over 58% of industry revenue in 2017-18 through its Sunglass Hut retail chain. Outside of Sunglass Hut, the number of sunglasses stores chains is relatively low. Specialist sunglasses stores typically stock higher end sunglasses, which are discretionary purchases that occur infrequently. Thus, it can be difficult to generate strong profit margins without support from manufacturers. Luxottica Group S.p.A maintains this support, as the company designs, manufactures and distributes the majority of sunglasses sold in Sunglass Hut stores. Sma...purchase to read more.

    Additional Insights for the Sunglasses Stores Industry

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

  • Having a loyal customer base
  • Ensuring pricing policy is appropriate
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Real household discretionary income in the Sunglasses Stores industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Sunglasses Stores Industry?

    Businesses in this industry sell prescription and non-prescription sunglasses, and may also provide fitting and lens processing services. The industry excludes department stores, optometrists and all online sunglasses sales.

    Industry Products
  • Men's sunglasses
  • Women's sunglasses
  • Prescription sunglasses
  • Industry Activities
  • Women's sunglasses retailing
  • Men's sunglasses retailing
  • Prescription sunglasses retailing
  • Sunglasses accessories retailing
  • Sunglasses repair services
  • 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 online shopping
  • Trade-weighted index

  • Current Performance
  • Consumer trends
  • Increasing competition
  • Industry profit and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing competition
  • Industry changes
  • Wages and profit
  • Table: Sunglasses Stores Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Health Insurance
  • Consumers

  • Key Selling Industries
  • Photographic and Optical Goods Manufacturing
  • Retail Property Operators

  • Products & Services
  • Women's sunglasses
  • Men's sunglasses
  • Prescription sunglasses
  • Other
  • Chart: Sunglasses 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 Sunglasses 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 Sunglasses Stores

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Luxottica South Pacific Holdings Pty Ltd,
  • Table: Luxottica South Pacific Holdings Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sunglasses 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 Sunglasses 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
    Lens
  • Sunglasses lenses are coloured, darkened or polarised to protect the eyes. Lenses are made of glass, plastic or special polarised material SR-91.
  • Point Of Sale (Pos)
  • An electronic payment system that incorporates a debit or credit card and a cash register in the same device.
  • Radio Frequency Identification (Rfid)
  • A wireless computer chip that tracks products through the supply chain and stores useful information about products.
  • Ultraviolet (Uv)
  • UV rays are emitted by the sun. Sunglasses absorbing UV rays to protect against potential harmful effects such as macular degeneration, cataracts and photokeratitis.
  • What Our Customers Say

    Why buy this report?

    The Sunglasses 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.

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

    Contact Us

    Want to speak to a representative? Call us.

    clear