IBISWorld Market Research
In response to competition, retailers will invest in increased employee training to provide better customer service.
Melbourne, Australia (PRWEB) October 25, 2014
Operators in the Womenswear Stores industry in Australia have struggled with a challenging retail environment over the past five years, as weak consumer sentiment, subdued demand and intensifying competition have driven down revenue and profit margins. Over the five years through 2014-15, industry revenue is expected to contract by an annualised 2.0% to $5.0 billion. According to IBISWorld industry analyst Lauren Magner, “instability in financial markets and widespread economic uncertainty during the period led to significant volatility in consumer sentiment levels.” Consumers became more cautious, cutting down expenditure on discretionary items and preferring to save rather than spend. This trend prevailed throughout much of the five-year period as consumers remained nervous about global economic conditions. However, improvements in the overall economy have led to revenue growth over the past three years, with revenue expected to increase by 0.8% in 2014-15 as consumer confidence and disposable incomes increase.
The industry has been contending with intensifying competition from department stores and online retailers. “Department stores have significant economies of scale and are able to source products directly from manufacturers at a lower cost,” says Magner. As a result, these large retailers can offer a wide range of women's apparel at competitive prices, and the format of these stores allows customers to buy clothes for themselves while also shopping for their family. The rise of online shopping has created fierce competition for the industry. Consumers are able to compare different products and prices across a range of online retailers before making their selection. This shifts revenue away from traditional bricks-and-mortar retailers, as online stores often have greater flexibility over prices and are able to offer better value for money. The industry exhibits a low level of market share concentration. Major players include Specialty Fashion Group Limited, ARJ Group Holdings Pty Ltd, Premier Investments Limited and Country Road Limited.
In response to growing competition, it is expected that retailers will invest in increased employee training in order to provide a higher level of customer service and differentiate themselves from competitors. This is expected to support sales growth over the next five years. However, increased acceptance of online shopping will continue to adversely affect industry revenue. Despite the development of multi-channel strategies by many companies in the Womenswear Stores industry, online sales generated by traditional retailers are excluded from the industry.
For more information, visit IBISWorld’s Womenswear Stores industry in Australia report page.
Companies in this industry retail women’s clothing. This includes both specialist women’s clothing stores, and sales of women’s clothing by unisex specialist clothing retailers. The industry excludes department stores and online sales of womenswear.
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Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
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Revenue Volatility
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