Revenue fell during the recession but will rebound as disposable income improves
New York, NY (PRWEB) July 11, 2014
The multibillion-dollar Lingerie Stores industry is composed of retailers that sell lingerie, nightgowns, shapewear and other specialty items. Following a drop in spending during the recession, demand for industry products has rebounded strongly, and revenue is expected to grow during 2014. The Lingerie Stores industry has benefited from the slow decline in the unemployment rate, which has boosted per capita disposable income, allowing consumers to increasingly purchase price-premium lingerie items. As a result, revenue is anticipated to increase over the five years to 2014.
According to IBISWorld Industry Analyst Britanny Carter, “product line expansion and favorable consumer trends have boosted demand for lingerie stores.” Many companies have begun offering intimate apparel targeted toward teens and women aged over 45 to boost sales. Plus-size lingerie has also expanded the industry's market reach over the past five years. Moreover, consumers are increasingly opting to purchase intimate apparel at specialty stores instead of department stores, accelerating growth.
Lingerie sales typically generate higher margins compared with general apparel products. Profit has increased considerably since its recessionary low, due to improved consumer spending. Rising cotton prices and discounted pricing, however, have limited returns. “Over the five years to 2014, the price of cotton is expected to rise, increasing merchandise costs for the industry's retailers,” says Carter. Furthermore, e-commerce retailers are typically able to offer their products at lower prices than brick and mortar stores, forcing many lingerie stores to discount their products.
Favorable economic growth is expected to continue over the next five years, boosting demand for the Lingerie Stores industry. Over the five years to 2019, industry revenue is forecast to rise, and during this period, the unemployment rate is expected to slowly trend down. With more favorable employment trends, per capita disposable income is expected to rise, allowing consumers to increasingly splurge on higher-end lingerie items. The industry will, however, experience increasing external competition from discount retailers, mass merchandisers and e-commerce retailers that are expected to continue expanding their lingerie lines.
For more information, visit IBISWorld’s Lingerie Stores in the US industry report page.
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IBISWorld industry Report Key Topics
The Lingerie Stores industry includes retailers that primarily sell intimate apparel for women. This includes bras, panties, sleepwear, shapewear and other lingerie items.
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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