Tobacconists and Other Specialised Grocery Retailing in Australia Industry Market Research Report Now Updated by IBISWorld

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The Tobacconists and Other Specialised Grocery Retailing industry has faced a difficult trading environment. New laws regarding the sale of tobacco products (such as banning the display of tobacco products in retail outlets) affected sales, as did health and wellbeing movements. Retail demand during the five years to 2011-12 was also driven by trends in real household disposable income, consumer sentiment, mounting competition from supermarkets and other external players, rising input costs and a shift in consumer tastes and preferences towards a healthier lifestyle. For these reasons, industry research firm IBISWorld has updated its report on the Tobacconists and Other Specialised Grocery Retailing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Tobacconists and Other Specialised Grocery Retailing industry operators must diversify to maintain revenue growth

Tobacconists and other specialised grocery retailers endured a challenging trading environment over the five years through 2011-12. Following the implementation of graphic warning labels in 2006, retail spending on cigarettes and tobacco products declined as a share of household final consumption expenditure. According to IBISWorld industry analyst Claudia Burgio-Ficca, “the introduction of bans on the display of tobacco over this five-year period also contributed to the overall fall in demand”. Health and wellbeing also played a central role in the demand for confectionery, smallgoods, bread and cakes as a result of continued social awareness about the fat and sugar content of these goods. The combined effect of these factors led industry sales to decline by an annualised 0.5% over the five years through 2011-12.

Tobacconists and Other Specialised Grocery Retailing industry revenue is estimated to rise by 0.9% to reach $5.94 billion in 2011-12. Burgio-Ficca adds, “the modest rise in sales will stem from stronger growth in disposable income and a continued increase in consumer sentiment, which will bode well for retail shopping values”. Industry sales during the year are expected to be affected by a continued decline in smoking rates, which will negatively affect consumer demand for cigarette and tobacco products. Competition from supermarket and other external players will ensure that price remains a focal point for generating sales. Market share concentration is low due to the vast assortment of products retailed by this industry, the fragmented nature of operators and the lack of a dominate player accounting for a notable share of the industry. There are no major players in the Tobacconists and Other Specialised Grocery Retailing industry.

Tobacconists and other specialised grocery retailers will experience modest growth over the five years through 2016-17, with revenue projected to rise by an annualised 1.1%. The introduction of plain packaging on tobacco products from 1 December 2012 is expected to lead to further declines in smoking rates (and the overall demand for tobacco). Tobacconists and Other Specialised Grocery Retailing industry revenue will be supported by growth in disposable income and consumer sentiment. Sales across the industry will continue to be affected by price and product competition from supermarkets. Consumer concerns regarding the fat and sugar content of smallgoods, confectionery, bread and cakes will also influence industry performance.

For more information, visit IBISWorld’s Tobacconists and Other Specialised Grocery Retailing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Industry operators retail tobacco and a range of specialised foods including confectionery, smallgoods, bread and cakes that are not manufactured on the same premises. Products are sourced from specialised wholesalers and then sold via retail outlets to the general public. Businesses that primarily operate as supermarket or grocery stores or offer food for takeaway or immediate consumption are excluded from this industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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