Mall Carts & Kiosks in the US Industry Market Research Report Now Available from IBISWorld
New York, NY (PRWEB) September 25, 2014 -- Over the past five years, declining mall traffic has decimated the Mall Carts and Kiosks industry, as a greater number of consumers have gone online to buy products traditionally purchased in malls. Despite stronger consumer spending since the recession and more aggressive tactics by shopping mall owners to earn revenue from underutilized spaces, the industry has struggled to generate sales. According to Industry Analyst Andy Brennan, “Mall owners, battling declining traffic due to changing consumer-shopping patterns, have attempted to cultivate cart and kiosk operators with attractive lease terms and more prominent spaces.” However, less mall foot traffic has ultimately forced a growing number of operators out of business. As a result, industry revenue is expected to decline markedly over the five years to 201, including a significant decline in 2014.
The industry includes a diverse range of specialty retail establishments that are typically located in shopping malls, airports, at sporting events or within large department stores. Kiosks, where customers approach the vendor from across a counter, and carts, where customers transact outside of the unit, are usually no bigger than 150 to 200 square feet and require only a single employee. Operators include independent businesses that retail a range of products such as apparel, cell phone accessories and jewelry, as well as manufacturer-owned outlets seeking a more profitable way to sell their wares compared to brick-and-mortar locations. The industry also includes automated kiosks such as those in airport terminals that sell consumer electronics and other products.
Due to the dominance of single-site operators, this industry exhibits a low level of market share concentration. In 2014, the top two mall carts and kiosks operators are expected to account for only a marginal amount of this industry's market share. Furthermore, the Mall Carts and Kiosks industry has a large number of small players, with the average establishment being manned by a single person. “The dominance of independent operators goes back to the historical beginnings of the industry and persists because smaller companies can quickly adapt to changes,” says Brennan. Small companies can also compete effectively by acquiring superior locations or offering specialized merchandise and services. Consequently, the fragmented nature of this industry makes it difficult for any one operator to obtain significant market share.
The industry will continue to struggle over the next five years as overall mall foot traffic continues to decline as consumers prefer more convenient ways to shop. However, growing consumer spending driven by lower unemployment and higher household income will help the industry, as will seasonal pop-up locations cashing in on higher consumer spending during peak seasonal periods. Nonetheless, the industry requires growing consumer foot traffic in malls to generate sales and IBISWorld expects this will be the main constraint on industry sales. Industry revenue is expected to continue declining over the five years to 2019.
For more information, visit IBISWorld’s Mall Carts & Kiosks in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments that retail various goods (excluding food) from kiosks and carts. Operators are most often located in indoor or outdoor malls or shopping areas. This industry also includes computer-based interactive or self-service kiosks.
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Globalization & Trade
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Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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