The industry has expanded over the past five years as holidays have become increasingly commercialized
New York, NY (PRWEB) March 08, 2014
The retail market for seasonal decorations has sparkled over the past five years, as consumers have ramped up their holiday spending. According to IBISWorld Industry Analyst Andy Brennan, “A greater number of consumers are spending money decorating their homes as they get into the holiday spirit.” The average amount spent per customer has also increased over the past five years, as per capita income has grown and consumer confidence has improved. Thousands of businesses across the United States have also come to the party, aided by increased corporate profit, which has reached a record level. As a result of these positive trends, industry revenue is expected to increase at an average annual rate of 6.3% over the five years to 2014. Growth is expected to slow slightly in 2014 as consumer spending tempers; however, the industry will still experience a merry year, increasing by 2.5% to $24.0 billion.
Selling seasonal decorations is now big business. The industry has expanded over the past five years as holidays such as Christmas and Easter have become increasingly commercialized. Focus has shifted more toward the material aspects of religious and cultural holidays than toward their intended traditional or historical purpose. Also, many consumers and businesses now decorate earlier in the holiday season. For example, it is not uncommon for Christmas decorations to hit store shelves well before Thanksgiving. For this reason, a growing number and range of retailers have started selling seasonal decorations, especially as a way to earn greater revenue during traditionally slow sales months.
Many of these trends are expected to continue over the next five years as consumers and businesses continue to boost spending on seasonal decorations. “The industry's growth is expected to slow slightly over the outlook period, as its rapid period of growth curtails,” says Brennan. However, those enterprises with a commercial interest in the various holiday seasons will continue to aggressively market seasonal decorations, ultimately leading to higher sales. The industry will be aided by a rise in incomes and corporate profit, two major drivers of demand for seasonal decorations. The retail market for seasonal decorations is projected to expand over the five years to 2019.
The industry has a relatively low level of concentration. Besides Walmart and a handful of other large national retailers, seasonal decorations merchandise is retailed at small- to medium-size stores, which make up the majority of the industry and serve local markets. Despite price-based competition from large national retailers, local stores are often better suited to understand and serve the local community's religious and other holiday observances. Similarly, local operators may be able to keep costs low by focusing on the retail of a few brands of seasonal decorations that serve a specific niche market. Concentration is likely to increase slightly over the five years to 2019, as supercenters and department stores expand their presence into local communities, increasing competitive pressure on smaller operators.
For more information, visit IBISWorld’s The Retail Market for Seasonal Decorations
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
Companies in the Retail Market for Seasonal Decorations industry sell seasonal decorations like Christmas lights and Halloween decorations. This report shows the size of the retail market for this product and includes sales from all major retail channels, including specialty stores, general merchandisers and internet retailers.
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.