As the economy continues to recover, revenue for men’s clothing stores will expand
Los Angeles, CA (PRWEB) June 12, 2013
Over the five years to 2013, the Men's Clothing Stores industry grew at an annualized rate of 0.7% to $2.7 billion. The industry's anemic growth can be attributed to the devastating effects of the global economic crisis over 2009. According to IBISWorld industry analyst Kiera Outlaw, “High unemployment and falling disposable incomes prompted many consumers to scale back discretionary spending over 2009.” The national unemployment rate rose to 8.3%, while disposable incomes fell 0.4%. Consequently, men's clothing stores experienced declining demand and many operators resorted to promotional and discount activity to bear the burden.
The Men's Clothing Stores industry did an about-face the following year, though, with the unemployment rate falling, disposable incomes returning to growth and consumers gaining back the confidence lost during the previous year. Moreover, “male consumers generally have different purchasing characteristics than their female counterparts, with males displaying a lack of price sensitiveness when compared with women,” Outlaw says. “For instance, women are more willing to shop around for the best price, while men are not as keen to this practice.” As a result, revenue in the Women's Clothing Stores industry returned to more modest growth over 2010.
In the five years to 2018, the national unemployment rate is expected to fall, while disposable incomes grow marginally. While industry profit margins are expected to stay elevated over the period, an expected rise in competition will likely offset any dramatic rise in profitability. IBISWorld forecasts the industry will experience an increase in external competition over the next five years, as international clothing retailers muscle in on the Canadian retail market. IBISWorld expects a number of large international companies, such as US-based Nordstrom Inc., will edge in on the clothing retail industry in Canada. Over the next five years the number of establishments and enterprises are expected to rise as new players enter the market. This will further fragment the industry before merger and acquisition activity begins to become more prevalent over the long-term. In response to competition, Canadian operators will strive to increase operational efficiency and cater to niche markets. For more information, visit IBISWorld’s Men's Clothing Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry retails a general line of new men's and boys' suits, formal wear, shirts, T-shirts, casual slacks, jeans, sport coats, blazers, sports apparel, sweaters, overcoats, raincoats and accessories. Services may also include basic alterations, such as hemming, taking in or letting out seams, and lengthening or shortening sleeves.
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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