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

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In the five years to 2020, the farm economy will, at first, continue its short-term dip, before resuming its long-term growth trend and, while this dip will translate into slightly decreased revenue for farm supply stores in the early part of the next five years, overall industry revenue will remain fairly stable. For these reasons, industry research firm IBISWorld has added a report on the Farm Supply Stores industry to its growing industry report collection.

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Recovery from low disposable income during the recession led the industry to benefit from pent-up demand

The Farm Supply Stores industry has recorded fairly stable growth in the past five years. Retail stores in this industry provide a one-stop shopping destination for a number of much-needed supplies for consumers in rural areas. IBISWorld Economic Analyst Antal Neville says in the updated report “these products include nondiscretionary purchases like pet and animal feed, heating fuel, clothing and footwear, as well as larger items for equipment or property upgrades, such as fencing, lawn and garden power tools, and agricultural machinery replacement parts.”

In the past five years, recovery from low disposable income during the recession led the Farm Supply Stores industry to benefit from pent-up demand, growing considerably in 2011 and 2012. However, as revenue in much of the agricultural sector began to fall toward the end of the past five-year period, income in a number of rural communities began to fall, leaving a number of consumers with fewer available funds to make large capital purchases. As a result, industry revenue increased in the five years to 2015; however, this five-year growth is expected to conclude with a drop in 2015.

In the five years to 2020, the farm economy will, at first, continue its short-term dip, before resuming its long-term growth trend. While this dip will translate into slightly decreased revenue for farm supply stores in the early part of the next five years, overall industry revenue will remain fairly stable. The nondiscretionary products the industry sells to all types of rural consumers prevents year-on-year revenue from swinging too wildly in any given year. IBISWorld forecasts that industry revenue will grow in the five years to 2020. “Consolidation is one trend that is expected to mark the industry in the next five years as much as it has in the past five years,” Neville says in the updated report. Large-scale stores like Tractor Supply, far and away the industry leader, are able to provide customers with a wide variety of products, as well as added-value services like equipment repair. Since industry growth is expected to remain fairly tempered, larger companies are expected to aim their growth strategies at stealing market share away from competitors, taking a larger share of the pie.

For more information, visit IBISWorld’s Farm Supply Stores in the US industry report page.

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IBISWorld industry Report Key Topics

Stores in this industry sell a variety of home improvement, gardening, livestock and crop products. They are consumer-facing rather than farmer-facing and offer a format similar to traditional home improvement stores. Products sold in these outlets range from garden supplies to power tools, animal feed and power generators.

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 1-800-330-3772.

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Gavin Smith
IBISWorld
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