Specialty apparel stores have been adversely affected by rising production expenses.
New York, NY (PRWEB) May 06, 2014
Rebounding from its recessionary pitfall, the Lingerie, Swimwear and Bridal Stores industry is expected to achieve modest annual revenue growth of 2.3% over the five years to 2014. During the recession, industry revenue levels mirrored those of many discretionary retail industries, suffering as consumers' budgets tightened and shoppers cut spending on nonessential items. Moreover, sales of wedding gowns declined as consumers delayed their marriage plans or opted for inexpensive or secondhand goods. However, as the US economy has begun to recover from the recession, per capita disposable income has rebounded, allowing consumers to resume discretionary purchasing and offering some relief for this industry. Revenue for the Lingerie, Swimwear and Bridal Stores industry has grown in each of the past four years, including an expected 1.5% increase in 2014, to $15.1 billion.
According to IBISWorld Industry Analyst Jocelyn Phillips, “In addition to recession-fueled decreases in sales volumes, specialty apparel stores have also been adversely affected by rising production expenses over the five years to 2014.” This trend has mainly occurred because of fluctuations in the price of cotton, which has grown an annualized 7.3% since 2009. This added cost, combined with competition and poor industry performance, has stifled profitability; margins fell to 12.7% of revenue in 2009, when the price of cotton soared 65.0%. However, as cotton prices have come down from their highs and consumer demand has rebounded, IBISWorld expects average industry profit to expand to 13.2% of revenue in 2014.
Over the five years to 2019, continued economic recovery will aid in the industry's performance. “Equipped with deeper pockets, IBISWorld expects consumers to increase their spending on high-end discretionary items, such as those sold by industry operators, leading to increased demand and sales,” says Phillips. Revenue is expected to grow over the five-year period, however, the downward trend in the marriage rate, coupled with heightening external competition from department stores and online retailers, will constrain industry profit growth.
For more information, visit IBISWorld’s Lingerie, Swimwear and Bridal Stores in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Lingerie, Swimwear and Bridal Stores industry retail specialized lines of clothing, including bridal gowns, costumes, lingerie, uniforms and swimwear. These products are purchased from domestic and international manufacturers and wholesalers, and then retailed to the general public. Industry operators also often provide basic alterations such as hemming, taking in or letting out seams, or lengthening or shortening sleeves.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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