The recession led consumers to shop for cheaper goods, benefiting thrift stores
New York, NY (PRWEB) November 05, 2014
The Thrift Stores industry is an important subsegment of the Used Goods Stores industry (IBISWorld report 45331. While the Used Goods Stores industry includes most kinds of used goods retailers, the Thrift Stores industry only includes those used goods stores that donate a significant portion of their revenue to charity. While the Thrift Stores industry includes both nonprofit and for-profit stores, excluded from this industry are antique stores, pawn shops, used records stores and any other used goods store that does not engage in substantial charitable activity.
The Thrift Stores industry is countercyclical, with industry revenue growth strongest during periods of economic distress. As a result, the industry performed well during the first half of the five year period to 2014. During the recession of 2009 and in subsequent years, the collapse of the global economy led to spikes in domestic unemployment and the poverty rate, as well as sharp declines in per capita disposable income. Given that the Thrift Stores industry generates a substantial share of its revenue from the sale of used consumer goods to the poor and those suffering from financial difficulties, these negative shocks encouraged a greater number of consumers to increase their shopping trips to Thrift Stores in an attempt to reduce discretionary spending. As a result, industry revenue in 2009, 2010 and 2011. However, as the economy has improved in recent years, industry revenue growth has slowed. As a result, the Thrift Stores industry is only expected to grow marginally over the five years to 2014, with revenue forecast to fall in 2014.
The Thrift Stores industry is expected to decline over the five years to 2019 as improving economic conditions encourage consumers to divert their shopping away from industry establishments towards retailers of new, higher-quality goods. In addition, industry revenue is expected to be further squeezed due to increased competition from mass merchandisers (IBISWorld report 45291) and e-commerce (IBISWorld report 45411a), which offer consumers a wider selection of new products, often at similarly low prices to those of the Thrift Store industry. As a result, industry revenue is anticipated to decline over the five years to 2019 to $8.1 billion.
For more information, visit IBISWorld’s Thrift Stores in the US industry report page.
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IBISWorld industry Report Key Topics
The Thrift Stores industry is composed of stores that sell (mostly donated) used goods, with the intent of donating a significant portion of their proceeds to charity. This industry is a subcategory of the Used Goods Stores industry (IBISWorld report 45331), but excludes consignment shops, antiques shops, rare books stores, used records stores and other resale shops that do not allocate a significant portion of their revenue to charitable activities.
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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