Demand will rise as Americans begin feeling financially secure enough to have children
Los Angeles, CA (PRWEB) August 06, 2013
The Durable Baby Goods Stores industry caters to new parents, primarily retailing baby furniture, carriers and other furniture. “When the number of new parents decreases via a declining birth rate, this industry is negatively affected, which was the case for three of the past five years to 2013,” says IBISWorld Industry analyst Natalie Everett. “These conditions caused durable baby goods stores to struggle with declining revenue and increasing competition from other brick-and-mortar retailers as well as online retailers.”
The Durable Baby Goods Stores industry is a fragmented industry with low concentration, which, for the most part, has a large number of small participants. Meanwhile, market share concentration is projected to remain low, as the growing popularity of e-commerce and department stores offering durable baby goods will continue to threaten the industry. Major companies include Babies R Us, buybuy Baby Inc., and Pottery Barn Kids Inc.
During the five years to 2013, industry revenue declined at an average annual rate of 1.5% to $11.9 billion, including modest growth of 0.4% during 2013. “Hampered by falling disposable income, many Americans, including large numbers of young adults, put off having children during recession years,” says Everett. “Even at its lowest point in 2010, however, there were still 4.1 million babies born, but this industry did not reap the benefits of demand for products to care for these babies.” Traditional competition from department stores and supercenters only intensified as the economic recovery remained slow and stagnant, and consumers looked for the best deals on strollers, car seats, cribs and similar goods, rather than buying brand-name, high-value baby products. Some Americans preferred used items passed down from older siblings or relatives, bypassing new products from this industry's stores altogether.
The situation will brighten moving into the next five years. As the economic picture improves during the five years to 2018, people will feel financially secure enough to have more children or to start a family. The industry will continue to face competition from online retailers, but parents will still patronize brick-and-mortar stores to ensure that the quality, safety and size of products fit their babies' needs. For more information, visit IBISWorld’s Durable Baby Goods Stores in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises stores that retail durable goods for babies and toddlers up to 4 years old. Examples of primary products this industry sells include cribs, strollers, dressers, changing tables, car seats and other similar items. Though operators may sell some toys and clothes, retailers that primarily sell toys or clothes are captured in the Hobby and Toy Stores (IBISWorld report 45112) and Childrens' and Infants' Apparel Stores (44813) industries, respectively.
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