The industry has had to battle against tough external competition.
New York, NY (PRWEB) July 05, 2014
The Children's and Infant's Clothing Stores industry is still attempting to surpass recessionary lows, while simultaneously battling the demographic changes taking place in Canada. The fallout from the financial crisis, which impacted the rest of the world in 2008 and 2009, affected Canada at a later stage as per capita disposable incomes fell by 0.3% over 2010. “This decrease, coupled with the sluggish recovery, induced a period of depressed consumer spending, which has grown at a slower rate than its historical pace over the past five years,” according to IBISWorld Industry Analyst, Zeeshan Haider. Consequently, industry revenue declined at an annualized rate of 1.2% to $917.9 million over the five years to 2014, with an expected drop of 1.6% over 2014 alone.
Over the past five years, the industry has also had to battle against tough external competition. “Many department stores and international brands started selling children's clothing in Canada, which reduced the overall price point at which such items are sold,” says Haider. Additionally, significant volatility in the price of cotton, over the past five years, has resulted in shrinking profit margins. Such a hostile environment has encouraged many operators to leave this industry and so the number of enterprises in this industry is expected to decline at an annualized rate of 1.3% to 629 operators.
Over the five years to 2019, per capita disposable income is expected to rise. Furthermore, a falling unemployment rate will support stronger industry revenue growth over the coming five-year period. However, the industry will continue to experience intense competition from alternative retailers such as department stores and online clothing stores. Additionally, store operators will contend with additional competition as more foreign retailers enter the industry. Nonetheless, the fiercely competitive nature of this industry will result in many operators continuing to exit the industry.
For more information, visit IBISWorld’s Children's and Infants' Clothing Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry comprises specialized clothing retailers that sell a wide range of ready-to-wear infant and children's clothing. Supplementary services include basic alterations such as hemming and taking in or letting out seams. This industry excludes retail sales from department stores, mass merchants and online-only 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
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