The retail market for firearms has increased due to concerns that certain firearms would no longer be available.
New York, NY (PRWEB) February 12, 2014
The Gun and Ammunition Stores industry has grown strongly during the five years to 2014, at an average annual rate of 10.6%. The industry has shot up due to a number of key events that have renewed consumer interest in guns. Firstly, the reelection of the President Obama in 2012 raised alarm bells among pro-gun groups that the administration could pursue stricter gun control measures in its second term. Also, a number of high-profile mass shootings, most notably the Sandy Hook Elementary School massacre in December 2012, prompted renewed debate about gun control and triggered federal and state proposals for new legislation to ban rapid-firing assault weapons and expand background checks. However, the Senate rejected the plan in mid-2013, resulting in tempered gun sales for the remainder of the year. According to IBISWorld Industry Analyst Omar Khedr, “For this reason, industry growth is expected to slow slightly in 2014, increasing 5.0% to $3.2 billion.”
With demand for Gun and Ammunition Stores industry products surging over the past five years, the number of gun shops has spiked. In fact, over the five years to 2014, the number of industry establishments grew at an average annual rate of 7.0% to 9,464. This is despite the heavy competition the industry faces from other gun and ammunition retailers, especially sporting goods and outdoor stores such as Cabela's and Gander Mountain, as well as online retailers, gun shows and pawn shops. However, the competitive advantage that specialized gun and ammunition stores provide, namely, more personalized service and advanced knowledge about firearm and ammunition specifications, has held the industry in good stead.
The industry's recent rapid growth is expected to slow over the next five years, increasing at a more normalized average annual rate. Many consumers that were considering purchasing a firearm did so over the past five years, reducing the available pool of potential buyers. Still, economic fundamentals are expected to continue to improve over the next five years, leading to increased industry sales. “Disposable income levels and consumer confidence are projected to continue advancing, giving consumers the impetus to splurge on discretionary items such as guns and ammunition,” says Khedr.
For more information, visit IBISWorld’s Gun and Ammunition Stores in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
The Gun and Ammunition Stores industry comprises establishments that specialize in retailing guns and ammunition. Industry establishments may also sell a range of equipment and accessories alongside their main product lines.
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.