The industry has been kept afloat by sales of customized products to affluent customers.
New York, NY (PRWEB) March 08, 2015
Demand for window treatment stores is on the decline, as consumers increasingly consult general home improvement and decorations stores for their window needs on the basis of price and convenience. While the industry never quite recovered from the recession, sales of window treatment products from specialized stores continued to suffer during the post-recession period despite rising disposable income and consumer confidence. “In response, some industry companies have cut back on the amount of stores they operate, while others have left the industry altogether,” according to IBISWorld Industry Analyst Melissa Imbrugilia. Over the past five years, the industry has been kept afloat by sales of customized products to affluent customers, which generate more revenue than mainstream brands also offered at Home Depot, Lowe's and department stores. IBISWorld expects total revenue for the Window Treatment Stores industry to decline at an average annual rate of 4.2% to $975.9 million over the five years to 2015.
Online retail has also emerged as a strong form of competition for industry participants by offering consumers more options and lower prices. “As a result of lower operating costs, online retailers such as Overstock can offer lower prices to consumers, putting pressure on brick-and-mortar retailers,” says Imbrugilia. In 2015, industry revenue is expected to rise 1.0% due to forecast increases in household income and spending on home improvements. While specialized window treatment stores are not necessarily luxury retailers, higher-income consumers are more likely to forgo lower prices offered at general home improvement stores in exchange for higher-quality products.
Over the five years to 2020, revenue is anticipated to continue its downward trend, but at a slower pace. In reaction to prolonged low demand for window treatment stores, the number of industry establishments is projected to decline nationwide. The industry is expected to benefit slightly from increased disposable income over the next five years, which will lead consumers to spend more on curtains and specialized window furnishings. Competition from general home improvement stores and online retailers will continue to be the greatest obstacle for this industry because many consumers will continue to search for the best prices available, at the forfeiture of quality.
For more information, visit IBISWorld’s Window Treatment Stores in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes specialty shops that retail indoor and outdoor window treatment products to consumers. Department stores, wholesalers, mass merchandisers and online retailers are excluded from this industry.
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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