(PRWEB) January 16, 2015 -- As the broader economy has recovered over the past five years, stores selling secondhand goods have been adversely impacted by rising employment and improved disposable income levels. The Canadian Used Goods Stores industry, comprised of both for-profit and nonprofit entities, has experienced stagnating revenue as the economic recovery has progressed. IBISWorld expects industry revenue to have grown only marginally since 2010, and to nearly flatten in the next five years.
The industry is largely countercyclical, and revenue typically rises in periods of poor macroeconomic performance. According to IBISWorld Industry Analyst Stephen Morea, “As Canada suffered from high unemployment during the recession and per capita disposable income fell, many cash strapped consumers opted for less expensive used goods instead of purchasing new items from retail stores, causing industry revenue to soar in 2010.” Since, however, improving economic conditions in the country have stalled revenue growth, as more consumers resumed purchases of new goods. “Nevertheless,” says Morea, “persistently high unemployment has led to a slight shift in consumer purchasing patterns, and individuals and families with less discretionary income continue to buy used apparel and household goods.” Continued demand from these cash-strapped households over the past five years has provided for marginal growth in the industry.
Most companies in the Used Goods Stores industry are relatively small, catering to limited local or regional markets, and in the next five years increased competition from large discount department stores able to offer new goods at low prices will further limit growth. Combined with increased employment and rising disposable incomes, this competition will constrain the industry. For these reasons, IBISWorld anticipates the industry’s total revenue to stagnate over the five years to 2020.
For more information, visit IBISWorld’s Used Goods Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry collects or purchases used merchandise and sells these goods directly to consumers. The industry includes thrift stores and pawnshops but excludes stores that sell secondhand motor vehicles and parts, such as automobiles, recreational vehicles, motorcycles, boats and tires.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized 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 US and Canadian 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Most companies in the Used Goods Stores industry are relatively small, catering to limited local or regional markets, and in the next five years increased competition from large discount department stores able to offer new goods at low prices will further limit growth. Combined with increased employment and rising disposable incomes, this competition will constrain the industry. For these reasons, IBISWorld anticipates the industry’s total revenue to stagnate over the five years to 2020.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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