Womenswear Stores in Australia Industry Market Research Report Now Updated by IBISWorld

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Intensifying competition from internet retailing is slowing growth in the Womenswear Stores industry in Australia. For this reason, industry research firm IBISWorld has updated its report on the Womenswear Stores industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Consumers are able to compare different products and prices across a range of online retailers before making their selection.

The Womenswear Stores industry in Australia has struggled in a challenging retail environment over the past five years, as weak consumer sentiment, subdued demand and intensifying competition have driven down revenue and profit margins. Over the five years through 2013-14, industry revenue is expected to contract by an annualised 2.5% to $5.0 billion. Following the global financial crisis, consumer confidence levels plummeted. As a result, consumers have become more cautious, cutting down expenditure on discretionary items and preferring to save rather than spend. According to IBISWorld industry analyst Lauren Magner, “this trend prevailed throughout much of the five-year period, as consumers remained nervous about global economic conditions and financial market instability”. However, improvements in the overall economy have led to revenue growth over the past two years, with revenue expected to increase by 1.3% in 2013-14 as consumer confidence levels and disposable incomes increase.

The industry has been faced with intensifying competition from department stores and online retailers. Department stores have significant economies of scale and are able to source products directly from manufacturers at a lower cost. As a result, these large retailers can offer a wide range of women's apparel at competitive prices, and the format of these stores allows customers to buy clothes for themselves while also shopping for their family. The rise of online shopping has created fierce competition for the industry. Consumers are able to compare different products and prices across a range of online retailers before making their selection. “This shifts revenue away from traditional bricks-and-mortar retailers, as online stores often have greater flexibility over prices and are able to offer better value for money,” says Magner. The industry is characterised by a low level of market share concentration. The top four major players are Specialty Fashion Group Limited, ARJ Group Holdings Pty Ltd, Premier Investments Limited and Country Road Limited.

In response to growing competition, it is expected that retailers will invest in increased employee training in order to provide a higher level of customer service and differentiate themselves from competitors. This is expected to support sales growth in the Womenswear Stores industry over the next five years. However, increased acceptance of online shopping will continue to adversely affect industry revenue. Despite the development of multi-channel strategies by many companies in this industry, online sales generated by traditional retailers are excluded from this industry.

For more information, visit IBISWorld’s Womenswear Stores in Australia industry report page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics
Companies in this industry retail women’s clothing. This includes both specialist women’s clothing stores, and sales of women’s clothing by unisex specialist clothing retailers. The industry excludes department stores and online sales of womenswear.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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