Three consecutive years of recent gains have been masked by deep recessionary drops
Los Angeles, CA (PRWEB) February 22, 2012
The Lamp and Lighting Stores industry will begin to brighten as per capita disposable income and consumer sentiment increases as the economy continues to recover. With more money to spend, Americans are expected to increase their demand on lamps and lighting products that they had delayed in the past few years. As a result, industry revenue is projected to increase 4.6% in 2012 to $854.1 million. Over the five years to 2012, however, the industry has not been as bright. The recession caused a steep decline in consumer sentiment and drop in disposable income, which resulted in many consumers refraining from buying discretionary home goods such as lamps and lights. In addition, the housing market collapsed and sales of new and existing houses plummeted. According to IBISWorld industry analyst Mary Nanfelt, because industry operators rely heavily on new homeowners to purchase their goods, the decline in the housing market pushed revenue down further. However, economic conditions did begin to improve in 2010 and demand for lamps and lighting has been increasing slowly since then. This has boosted sales although internal competition within the industry has intensified changing the landscape of the industry. In the five years to 2012, industry revenue is expected to decline at an average annual rate of 3.5%.
From 2007 to 2012, The Lamp and Lighting Stores industry is expected to experience further growth. The economy will continue to recover which will increase consumer sentiment along with disposable income. As a result more consumers will spend their money on discretionary goods like this industry's products. In addition, an increase in homeownership levels will further boost industry demand as new homeowners wish to decorate their newly acquired homes.
As revenue begins to expand for this industry, more firms are expected to enter. In the coming five years, company numbers are expected to increase; as company numbers rise, employment will follow suit. The industry has high market share concentration, as evidenced by the combined market shares held by the four largest industry players: The Home Depot Inc., Lowe’s Companies Inc., Bed Bath & Beyond Inc. and Williams-Sonoma Inc. “These players hold a large majority of the total industry and have grown over the past five years as key players expanded store counts during the same period,” says Nanfelt. Despite lower demand for these products, large players were able to discount prices and reach new markets in doing so, and in turn, increasing total market share concentration. This rise in market share came at the expense of smaller lamp and lighting stores, many of which were forced out of business during the recession. For more information, visit IBISWorld’s Lamp and Lighting Stores report in the US industry page.
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IBISWorld industry Report Key Topics
This industry retails lamps used as home furnishings. Players that retail lighting fixtures, including ceiling lights and chandeliers, are also included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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