IBISWorld Market Research
Specialty apparel stores have been adversely affected by rising production expenses.
Los Angeles, CA (PRWEB) March 18, 2012
Lingerie, Swimwear and Bridal Stores industry revenue is expected to decline at an average annual rate of 1.8% over the five years to 2012. The industry has battled through some volatile ups and downs in demand. Until 2007, the combination of job growth, lower savings and easy access to credit allowed high discretionary spending, leading to strong sales of specialty apparel like lingerie, swimwear and bridal gowns. This trend quickly reversed in 2008, though, as weak consumer confidence in the economy and low income due to the recession caused consumers to tighten their budgets for nonessential goods, leading demand and sales to fall substantially. “Sales of wedding gowns declined as consumers delayed their marriage plans or opted for cheaper, secondhand goods,” says IBISWorld industry analyst Nikoleta Panteva. Encroaching competition within the retail market has also slowed industry growth, as department stores, discount retailers and internet retailers have increasingly taken customers away by offering convenience and low prices.
Specialty apparel stores have been adversely affected by rising production expenses over the five years to 2012. This trend has mainly occurred because of fluctuations in the price of cotton, which increased by more than 65.0% in 2010 alone. This added cost, combined with competition and poor industry performance, has decreased profit within the industry; margins have declined from 3.3% of industry revenue in 2007 to an estimated 3.0% in 2012. “With such faltering profitability, many underperforming operators have been forced to exit the industry or merge with other players,” Panteva explains. Over the five-year period, the number of companies has decreased 0.1% annually to 35,959 businesses. While the Lingerie, Swimwear and Bridal Stores industry remains somewhat concentrated at the top, the remainder of the industry is characterized by a large number of small players. Currently, Limited Brands dominates the industry, with brands including Victoria’s Secret, VS Pink and Henri Bendel. Other smaller companies include David’s Bridal Inc. and Frederick’s of Hollywood Group Inc.
Fortunately for players, continued economic recovery will likely aid growth in the five years to 2017. Armed with deeper pockets, consumers are anticipated to increase their spending on high-end discretionary items, such as those sold by industry operators, leading to increased demand and sales. Nonetheless, the industry will continue to face competition from department stores and other retail outlets that attract consumers with added convenience and discounted prices. For more information, visit IBISWorld’s Lingerie, Swimwear and Bridal Stores report in the US industry page.
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IBISWorld industry Report Key Topics
Operators in this industry retail specialized lines of clothing, including bridal gowns, costumes, lingerie, uniforms and swimwear. These products are purchased from domestic and international manufacturers and wholesalers, and then retailed to the general public. Industry operators also often provide basic alterations such as hemming, taking in or letting out seams, or lengthening or shortening sleeves.
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