Thrift Stores in the US Industry Market Research Report Now Available from IBISWorld

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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, the collapse of the global economy encouraged a greater number of consumers to increase their shopping trips to Thrift Stores in an attempt to reduce discretionary spending. For this reason, industry research firm IBISWorld has added a report on the Thrift Stores industry to its growing industry report collection.

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The recession led consumers to shop for cheaper goods, benefiting thrift stores

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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-37

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Gavin Smith
IBISWorld Inc.
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