Sunglasses Stores in the US Industry Market Research Report Now Available from IBISWorld

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Along with most retail-based industries, the Sunglasses Stores industry struggled as consumer spending and sentiment declined during the recession. As these factors improved, so did industry revenue; these improvements are expect to continue through 2017. However, despite a steady growth forecast, industry revenue will face downward pressure from external competition from e-tailers and big-box stores. For these reasons, industry research firm IBISWorld has added a report on the Sunglasses Stores in the US industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Despite recessionary declines, this industry is poised to make a strong comeback

The Sunglasses Stores industry has begun its recovery from the economic storm. The industry was hit hard during the recession because disposable income and consumer sentiment toward the economy were low; both of which are key drivers of industry revenue. Accordingly, revenue fell in both 2008 and 2009, before an uptick in 2010. Improving incomes and a lower pricing strategy have attracted customers and bolstered sales, with revenue growing in both 2010 and 2011. “Though the industry is expected to post growth from 2010 to 2012, recessionary declines in 2008 and 2009 caused revenue to decline overall at an average annual rate of 1.0% to $1.01 billion over the five years to 2012,” said IBISWorld industry analyst Justin Waterman. However, growth will be slightly faster in 2012 with revenue estimated to increase 1.1%. Growth is dependent upon the price and ease of access (i.e. industry players' online sites) of goods: currently the most significant factors driving industry demand.

To cope with rising external competition, industry operators have lowered prices, cutting into margins. To help mitigate profit declines, industry participants are increasingly purchasing goods abroad, which are cheaper to produce, allowing for a lower per-unit price tag. This trend is expected to continue into 2017, as players will need to become increasingly competitive against e-tailers and big-box retailers. Operators will not only compete on price, but also on the basis of their websites. More and more players are offering online shopping to their customers to retain those that wish to have an online shopping experience. Over the five years to 2017, industry revenue is expected to grow. Demand from 2012 to 2014 will be driven by necessity, not luxury. Stronger growth is forecast from 2015 to 2017 as per capita disposable income rises faster in those years.

The Sunglasses Stores industry is highly concentrated. The two largest companies account for more than 80.0% of industry revenue. Luxottica alone accounts for an estimated 77.6% of the industry's revenue. Because Luxottica and Safilo license many of the most popular eyewear brands, their stronghold on the industry has grown over the past five years. IBISWorld estimates these two companies constituted 53.6% of revenue in 2007. According to Waterman, Luxottica's share of revenue has grown significantly over the past five years, primarily due to its mix of high-end designer and house sunglasses brands. Additionally, the number of its Sunglass Hut store locations has grown from about 1,500 to nearly 2,000 over the period, expanding its physical presence in the US Sunglasses Stores industry. For more information, visit IBISWorld’s Sunglasses Stores in the US industry report page.

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IBISWorld industry Report Key Topics

This industry sells prescription and non-prescription sunglasses and may also provide fitting and lens processing services. The industry does not include lens manufacturing, online and mail-order retailing or sales at optometrist offices.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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