London, United Kingdom (PRWEB) June 20, 2012
It has been a tragedy of errors for book retailers over the past five years. With sales expected to contract at an annualised 12.9% over the period, industry operators have faced a tough trading landscape. According to IBISWorld industry analyst Arna Richardson, “their greatest hurdle has been the increasing competition exerted on the industry by external operators such as supermarkets”. Retail demand for bricks-and-mortar book stores has been affected by online book purchasing and the introduction and growing popularity of e-books, which are expected to revolutionise the way consumers enjoy written text. The performance of book retailers has also been affected by fluctuations in the level of real household disposable income, the consumer price index and overall consumer confidence.
Industry sales are expected to contract by 3.9% in 2012-13, to £985 million. Book retailers will continue to operate in a highly competitive environment, leading to a loss of market share to external players. The book retailing market will continue on its downwards trend over the next five years to 2017-18, with sales forecast to fall. Trading conditions will remain subdued with little incentive for consumers to spend following the announcement of austerity measures by the government. Tax increases and cuts to public benefits will place further pressure on the disposable incomes of consumers and will negatively affect the volatility of an already suffering industry. Richardson adds, “while e-books are forecast to perform well, the extra demand generated by this new format will be insufficient to propel the industry back into growth”. However, the decline in sales will be considerably weaker than that of the previous five-year period.
The Book Retailers industry has a medium level of market share concentration, reflecting in part the ongoing consolidation process occurring within the industry. The top four players account for just over 70% of industry revenue. The two largest players are high-street retail brands Waterstone’s and WH Smith.
For more information on the Book Retailers industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in this industry sell new books from physical stores and via the internet. This industry includes e-books but excludes used and antique books.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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