New York, NY (PRWEB) July 25, 2014 -- The past five years have been a struggle for the Maternity Wear Stores industry. Operators suffered significant declines in revenue during the recession as consumer sentiment and per capita disposable income fell in 2009. Uncomfortable with the economic climate, many families delayed decisions to have children and cut expenditures. Over the following five years, demand for maternity wear fluctuated without rising significantly enough to give the industry the boost it needed to overcome the recession. Per capita disposable income has risen only marginally and the number of families having children has not grown significantly. As a result, industry revenue is estimated to grow weakly per year on average over the five years to 2014, despite the overall economic turnaround in the United States.
In response to lean demand, many operators tried to move excess inventory by offering steep discounts on their apparel. Nevertheless, consumer spending power was too weak to prop the industry up through this troubled time. According to IBISWorld Industry Analyst Will McKitterick, “Profit margins fell, forcing many operators to make adjustments to their business models including cutting workers and wages.”
While the recession has defined the industry's operating environment for much of the five-year period to 2014, many companies have already experienced a turnaround in sales and profit. “As disposable incomes inch up and consumer sentiment climbs in 2014, aggregate revenue is expected to grow during the year,” says McKitterick. Furthermore, IBISWorld projects that this positive trend will continue into the five years to 2019. With the US birthrate expected to grow over the next five-year period, demand for maternity apparel will resume, supporting industry revenue growth.
Still, online retailers will remain a threat to brick-and-mortar establishments. With the mounting presence of e-commerce over the past decade, online-only stores have grown in popularity among shoppers. E-tailers offered unmatched money savings to consumers during the recession, when deal hunting and price comparisons were paramount. While tough economic conditions are abating, online shopping will continue to reign, posing competitive threats to brick-and-mortar maternity wear retailers.
For more information, visit IBISWorld’s Maternity Wear Stores in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes brick-and-mortar retailers of maternity apparel, which is designed to fit the frame of a pregnant woman. Many retailers also undertake sales and administrative activities, such as customer service, advertising and cash handling. Some stores offer basic alteration services on site.
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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Gavin Smith, IBISWorld, +1 310-866-5042, [email protected]