London, United Kingdom (PRWEB) August 12, 2013
It has been an unfortunate story for operators in the Newsagents & Stationery Stores industry over the five years through 2013-14. According to IBISWorld industry analyst Christopher Edwards, “industry players have had to operate in a tough trading environment and confront increasing competition from external players, declining newspaper circulation numbers and the growth of internet shopping”. The result of this is expected to be a decline in industry revenue at a compound annual rate of 1.1% to £3.5 billion. Industry trading conditions during this period have also been affected by annual fluctuations in real household disposable income, poor consumer sentiment, a decline in the number of school children and the overall rate at which IT and telecommunications have been adopted by UK consumers. Newsagent and stationery retailer revenue is expected to decline by 2.2% in over 2013-14. Retail demand during the year will largely be hindered by the fragile state of the UK economy, which will affect consumer spending. Profit margins are estimated to have suffered over the past five years due to strong price-based competition and a softer retail market.
Several different outlets sell newspapers and magazines. Newsagents and stationers account for about 40.0% of all newspaper, magazine and stationery sales, followed by convenience and non-grocery supermarket retailers (30.0%), petrol stations (10.0%), supermarkets (9.0%) and other retailers (11.0%). Over the past decade, there has been a significant increase in the volume of newspapers, magazines and stationery sold by retailers other than those covered by the industry. Therefore the total market for newspapers, magazines and stationery is estimated at about £9.0 billion.
Industry retailers are expected to continue to experience a downward trend over the five years through 2018-19, with industry revenue forecast to further decline. Edwards adds, “the main cause of the decline will be the increased dominance of the internet, both as an alternative to print media traditionally stocked by industry operators and as a preferred method for consumers to purchase goods”. Continued high price-based competition among players and the mounting influence of external operators will also hinder sales prospects over the period.
The Newsagents & Stationery Stores industry is fragmented, with a few large players at one end of the spectrum and a number of smaller, independent operators at the other. However, increasing competition in the industry has led to a high level of merger and acquisition activity over the past decade. Along with the demise of mid-size operators, there has been a fall in the number of independent operators due to mounting competition from external players such as supermarkets, convenience stores, department stores and internet-based retailers. In 2013-14, the top four players in the industry are expected to account for 37.1% of revenue, giving the industry a low level of market share concentration. Major companies include WH Smith, Martin McColl and Staples UK Retail.
For more information on the Newsagents & Stationery Stores 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
Operators in this industry primarily sell newspapers, magazines, greeting cards and stationery, including office supplies. Products are sourced from a variety of local and international suppliers and sold primarily to consumers and businesses.
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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