Top Hat: Family Clothing Stores in the US Industry Market Research Report from IBISWorld has Been Updated
Family clothing stores stood relatively strong during the recession because of budget industry players like Ross and TJ Maxx, and over the next five years, the industry will benefit from greater consumer sentiment boosting sales of higher-quality and fashionable clothing. For these reasons, industry research firm IBISWorld has updated a report on the Family Clothing Stores industry in its growing industry report collection.
Los Angeles, CA (PRWEB) March 24, 2013
During the recession, the Family Clothing Stores industry experienced two consecutive years of declining revenue, but it is finally beginning to pick up steam, with revenue expected to grow 1.5% in 2013. And the industry has performed better than some of its specialty-store counterparts. For instance, the Men’s Clothing Stores industry’s revenue declined at an average rate of 1.7% per year over the five years to 2013, while Women’s Clothing Stores industry revenue has fallen 0.5% per year on average. According to IBISWorld industry analyst Nikoleta Panteva, “The industry’s fairly solid performance can be chalked up to the essential nature of its products: Families buy clothes because they need them, not because they are en vogue.” As a result, the industry’s revenue has increased at an average annual rate of 1.6% to $97.8 billion over the five-year period despite the recessionary declines.
Employment in the Family Clothing Stores industry also dropped during the recession. With demand diminishing and profit margins (earnings before interest and tax) dropping during the recession, operators had to cut costs. The number of employees fell 8.1% in 2009 alone. “Retail industries still require a sizable staff to run the day-to-day operations of a store, though,” says Panteva, “so employment has rebounded since the recession.” The two contrasting periods have resulted in relatively flat growth of 0.3% per year on average between 2008 and 2013. Similarly, wages have also stayed relatively the same.
Over the five years to 2013, market share concentration has increased. Two of the top four operators, TJX and Ross Stores, target price-conscious consumers with their low in-store prices, allowing them to grow strongly during the recession. Gap carries products in all price ranges and backs its product with the trusted Gap brand. The increased market share concentration can be attributed to these retailers’ positions within the industry. Their generally affordable prices and recognizable brands have buoyed them through the economic recession. IBISWorld forecasts that concentration will remain relatively steady over the five years to 2018 as consumers regain their purchasing power and switch from off-price retailers like TJX and Ross to higher-priced, higher-quality brands like the Gap’s Banana Republic segment.
IBISWorld forecasts a continued and steady recovery for the Family Clothing Stores industry. As the economy recovers and consumer sentiment bounces back, consumers will increasingly buy clothes for fashion rather than just for function. New stores will likely open to meet the growing demand, pushing up the total number of family clothing retailer locations. Threats loom from competing industries, though, especially the E-Commerce and Online Auctions industry (IBISWorld report 45411a). These e-tailers offer consumers ease of shopping not found in traditional brick-and-mortar stores, from selection and price comparison to the final transaction. This competing industry is set to expand its reach. For more information, visit IBISWorld´s Family Clothing Stores in the US industry report page.
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IBISWorld industry Report Key Topics
Family clothing retailers stock a general line of new clothing for men, women and children, without specializing in apparel for an individual gender or age group. These establishments may also provide basic alterations, such as hemming, taking in or letting out seams and lengthening or shortening sleeves.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 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.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/3/prweb10553709.htm