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 grow by an annualised 1.0% over the five years through 2016-17, to total $19.5 billion. Uncertain economic conditions and weak consumer sentiment in 2016-17 are expected to contribute to a subdued 1.0% increase in industry revenue, as households constrain discretionary spending.
The Department Stores industry is highly concentrated, with the top four players accounting for 93.1%... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Department Stores industry is highly concentrated, with the top four players accounting for 93.1% of industry revenue. Major players in the industry have numerous retail outlets throughout Australia, both in metropolitan and regional areas. Considerably high barriers to entry ensure that industry concentration remains strong, as major players use economies of scale to achieve and maintain profitability. Department stores require large amounts of retail space in numerous locations to compete effectively in the Australian market. Such retail space is extremely difficult to secure, which keeps competitors out of the industry. The industry is in the mature stage of its life cycle, and there has been some merger and acquisition activity over the past five years... purchase to read more