Women's Clothing Stores in Canada Industry Market Research Report Now Available from IBISWorld

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As the economy continues to gain momentum after the recession, disposable income will rise and support growth for the Women's Clothing Stores industry over the next five years. For these reasons, industry research firm IBISWorld has added a report on the Women's Clothing Stores industry to its growing industry report collection.

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Competition from one-stop-shop and online retailers will hamper industry growth

The performance of the Women's Clothing Stores industry relies on trends in consumer spending. According to IBISWorld industry analyst Nikoleta Panteva, “Over the five years to 2013, industry revenue has grown at an anemic 0.6% per year, on average, reflecting similar weak growth in per capita disposable income.” In 2009, when incomes declined 0.4% due to jumping unemployment, industry revenue fell 1.7%. In 2013, IBISWorld anticipates per capita disposable income to grow only 0.4%, resulting in a small 0.2% increase in industry revenue, to $5.3 billion.

Industry profit (i.e. earnings before interest and tax) also suffered during the five years since 2008. “Weak consumer incomes led to shoppers choosing lower priced, low margin items,” says Panteva. Profit remained slim during 2008 and 2009 as a result of consumers substituting cheaper items in light of declining confidence in their financial situations. The industry experienced constrained margins through 2010 and 2011 as well, due to the skyrocketing price of cotton. Floods in Pakistan and India in 2010 destroyed much of the world's supply of the commodity, causing its price to shoot up. The price of apparel jumped as well, increasing purchasing costs for the industry's players. Nevertheless, as consumers' budgets have bounced back and the world price of cotton has come down slightly, industry margins have recovered as well. IBISWorld estimates profit to account for 9.8% of revenue in 2013.

Market share concentration within the Women's Clothing Stores industry is low. The four largest industry players constitute 36.9% of the industry's market share. As such, the industry has a low market share concentration. While the industry's major companies each operate several hundred locations, there are many small-scale stores that run on a regional basis, serving only their local market. The average company is expected to account for only 0.03% of total industry revenue in 2013. Over the five years to 2013, market share concentration has remained relatively constant. While Reitmans has lost market share due to rising competition from lower-priced retailers, H&M has gained significant market share because of its competitive prices.

Revenue is also projected to continue on its upward trajectory. Per capita disposable income is anticipated to climb a healthy 2.1% in 2014, underpinning a 3.4% increase in revenue. Over the five-year period to 2018, revenue is projected to grow as unemployment abates, consumer confidence recovers and incomes grow. However, the Women's Clothing Stores industry is facing saturation. The number of participants is expected to continue increasing, limiting individual players' opportunities. External competition from alternative retailers is also anticipated to infringe on the industry's growth potential; time-poor consumers will favor one-stop-shop department stores and mass merchandisers, while ever-improving technology makes online shopping even more secure and convenient.

For more information, visit IBISWorld’s Women's Clothing Stores in Canada industry report page.

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IBISWorld industry Report Key Topics

Stores participating in this industry specialize in women's wear, including juniors' clothes, misses' clothes, plus-size fashion and maternity wear. Many retailers also undertake accessories retailing and other apparel retailing (such as men's and children's), activities that are traditionally undertaken by industries suchs as Men's Clothing Stores (44811) and Children's and Infants' Clothing Stores (44813).

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 and Canadian 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
IBISWorld
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