New York, NY (PRWEB) June 19, 2014
Over the five years to 2014, operators in the Men's Clothing Stores industry have had to contend with the lingering effects of the global economic crisis. After falling during the recession, industry revenue returned to growth in 2010, albeit at a moderate pace. Industry revenue is estimated to grow at an annualized rate of 1.5% to $2.7 billion over the five-year period, including stagnant growth (0.0%) in 2014.
According to IBISWorld Industry Analyst Vanessa Giraldo, “High unemployment and falling disposable income prompted many consumers to scale back on discretionary spending during 2009.” Consequently, men's clothing stores experienced declining demand, and many operators resorted to offering customers promotions and discounts to bear the burden, leading to declines in industry profitability. The industry did an about-face the following year, posting revenue growth of 3.4% in 2010 as disposable income levels increased and consumers regained confidence to make discretionary purchases. Male consumers, in particular, are often considered less price-sensitive than their female counterparts; therefore, revenue in the Women's Clothing Stores industry (IBISWorld report 44812CA) also returned to growth over 2010, yet at a more modest rate.
“Over the five years to 2019, industry operators will benefit from a falling national unemployment rate and increasing disposable income levels,” says Giraldo. Industry operators will likely experience an increase in external competition over the next five years, as international clothing retailers muscle in on the Canadian retail market. Yet, men's clothing stores will remain competitive as industry operators strive to increase operational efficiency and cater to niche markets. Increased competition will likely offset any dramatic rises in profitability; therefore, profit margins are expected to stay relatively steady over the period.
For more information, visit IBISWorld’s Men’s Clothing Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
The Men’s Clothing Stores industry retails a general line of new men's and boys' suits, formal wear, shirts, T-shirts, casual slacks, jeans, sport coats, blazers, sports apparel, sweaters, overcoats, raincoats and accessories. Services may also include basic alterations, such as hemming, taking in or letting out seams, and 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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