Department Stores in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) July 28, 2013 -- The Department Stores in Australia industry has struggled over the past five years due to a weak retail environment and low consumer confidence following the global financial crisis. Consumers have become increasingly price-conscious and reluctant to spend their discretionary income, preferring to pay down debt and increase savings. According to IBISWorld industry analyst Lauren Magner, “the industry will continue to face difficult trading conditions in 2013-14, as consumers remain cautious”. Over the five years through 2013-14, industry revenue is expected to contract at an annualised 1.9% to $18.6 billion. Although consumer sentiment is rising and interest rates have fallen, consumers are expected to remain frugal, with industry revenue forecast to contract by 0.3% over 2013-14.
The Department Stores industry is characterised by a very high level of concentration. As concentration is high, competition is intense. Discounting is prevalent across many stores and product lines, particularly among the low- to mid-market department stores. “Major players are exploring the viability of online shopping as a new avenue for revenue growth,” says Magner. Significant operators include Wesfarmers Limited, Woolworths Ltd, Myer Holdings Ltd and David Jones Limited. Multi-channel retailing activities are expected to become more prevalent in the coming years as players attempt to ride the wave of growth from the online segment.
Restructuring activities have been rampant during the past five years. Most major players have undergone structural changes in an attempt to tackle growing competition and reinvigorate retail spending. Wesfarmers has been successful in restructuring both of its department store brands: Kmart has streamlined its operations to focus solely on value products, while Target has strengthened its position in the mid-range market. David Jones has restructured its operations by strengthening its grip on the premium market. Future revenue growth is expected to be driven by new store openings for the major players. This will place industry participants in a prime position to take advantage of an upturn in the economy. The Department Stores industry will face increased competition from online retailers and the entrance of more international fashion giants over the next five years, which will temper industry revenue growth.
For more information, visit IBISWorld’s Department Stores report in Australia industry page.
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IBISWorld industry Report Key Topics
Department stores retail fabrics, soft goods, clothing, chinaware, glassware, housewares, perfumes, cosmetics, toiletries, furniture and household appliances. Goods are normally sold via separate, in-store departments. Department stores purchase products from wholesalers and manufacturers and sell them to consumers, generally without changing the products. They also undertake activities like customer service, product merchandising, advertising, inventory control and cash handling.
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International Trade
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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.
Gavin Smith, IBISWorld, 310-490-5973, [email protected]
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