New York, NY (PRWEB) January 11, 2014
Fluctuating household wealth, high unemployment rates and uncertain economic conditions have resulted in stagnant disposable income levels and poor consumer confidence in the five years to 2013. With low discretionary incomes, US consumers cut back on purchases of nonessential goods, including the fabrics, craft and sewing supplies that the industry sells. In addition, high external competition has exacerbated already declining industry demand. Discount department stores and online retailers have pulled consumers away from industry operators by offering lower prices that specialty stores have difficulty matching. As a result, IBISWorld estimates that the Fabric, Craft and Sewing Supplies Stores industry's revenue will rise at a much slower rate than it has done historically, at an annualized rate of 0.7% to $4.3 billion over the five years to 2013. As economic conditions continue to improve over the year, however, revenue is expected to increase 2.0% in 2013.
According to IBISWorld Industry Analyst Zeeshan Haider, “Some revenue loss has been offset by an increased interest in do-it-yourself (DIY) fashion.” A growing number of consumers began creating their own clothes and accessories to satisfy their demands for unique or customized goods while saving money. Despite this trend, poor industry performance overall has resulted in declining profitability. With such a decrease in profitability, many underperforming operators have been forced to exit the industry. Over the five years to 2013, the number of enterprises is expected to decline at an average annual rate of 0.2% to an estimated 19,678 operators.
Industry demand is expected to increase over the five years to 2018 due to rising disposable income. A rise in discretionary spending will encourage consumers to increase spending on industry products. However, “external competition from e-commerce and online auction sites will continue to threaten fabric and craft stores,” says Haider. These fast-growing outlets will steal a portion of consumer traffic away from industry operators by providing convenient shopping experiences, a wide range of products and low prices.
For more information, visit IBISWorld’s Fabric, Craft & Sewing Supplies Stores in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Fabric, Craft & Sewing Supplies Stores industry primarily retail sewing and craft supplies, fabrics, patterns, yarns, needlework accessories, seasonal decorations and sewing machines. Stores that sell sewing machines with other household appliances are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 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.