Small Specialty Retail Stores in the US July 2019 1
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WWW.IBISWORLD.COM Small Specialty Retail Stores in the US July 2019 1 Grand design: Tough external competition is expected to precipitate revenue decline This report was provided to Autobahn Consultants (2134210691) by IBISWorld on 27 October 2019 in accordance with their license agreement with IBISWorld IBISWorld Industry Report 45399 Small Specialty Retail Stores in the US July 2019 Claire O’Connor 2 About this Industry 18 International Trade 29 Revenue Volatility 2 Industry Definition 19 Business Locations 30 Regulation and Policy 2 Main Activities 31 Industry Assistance 2 Similar Industries 21 Competitive Landscape 3 Additional Resources 21 Market Share Concentration 32 Key Statistics 21 Key Success Factors 32 Industry Data 4 Industry at a Glance 21 Cost Structure Benchmarks 32 Annual Change 23 Basis of Competition 32 Key Ratios 5 Industry Performance 24 Barriers to Entry 33 Industry Financial Ratios 5 Executive Summary 25 Industry Globalization 5 Key External Drivers 34 Jargon & Glossary 7 Current Performance 26 Major Companies 9 Industry Outlook 26 Leslie’s Poolmart Inc. 11 Industry Life Cycle 26 The Container Store Group Inc. 27 The Yankee Candle Company Inc. 13 Products and Markets 27 Williams-Sonoma 13 Supply Chain 13 Products and Services 28 Operating Conditions 16 Demand Determinants 28 Capital Intensity 17 Major Markets 29 Technology and Systems www.ibisworld.com | 1-800-330-3772 | [email protected] WWW.IBISWORLD.COM Small Specialty Retail Stores in the US July 2019 2 About this Industry Industry Definition Industry operators retail specialized general merchandise auction houses lines of goods: kitchenware, art (except electronic auctions), but supplies, cigarettes and cigars, excludes mass merchandisers, collectors’ items, fireworks and department stores, grocery stores, trophies. This industry also includes warehouse clubs and supercenters. Main Activities The primary activities of this industry are Retailing general merchandise Retailing tobacco and tobacco products (e.g. cigarettes and cigars) Retailing art supplies Retailing collectors’ items (e.g. autographs, cards, coins and stamps) Retailing fireworks Retailing candles Retailing religious goods (except books) Retailing trophies Retailing specialized occupational supplies Retailing calendars The major products and services in this industry are Art materials and supplies Collectibles and monuments Groceries and alcoholic beverages Home goods Pools, pool chemicals, pool supplies and accessories Tobacco products and smokers’ accessories Other Similar Industries 44831 Jewelry Stores in the US This industry retails a wide array of jewelry and time pieces. 45211 Department Stores in the US This industry retails a wide range of merchandise including apparel, cosmetics and appliances. 45322 Gift Shops & Card Stores in the US This industry retails a variety of goods, including greeting cards and gift items such as glassware. 45331 Used Goods Stores in the US This industry retails a broad range of merchandise, such as antiques, clothing and books. 45392 Art Dealers in the US This industry includes art galleries and art auction houses that retail a broad range of original and limited edition artwork. Provided to: Autobahn Consultants (2134210691) | 27 October 2019 WWW.IBISWORLD.COM Small Specialty Retail Stores in the US July 2019 3 About this Industry Similar Industries 45411a E-Commerce & Online Auctions in the US continued This industry retails a wide array of merchandise via the internet. 45411b Mail Order in the US This industry retails a wide array of products via mail order or catalogs. Additional Resources For additional information on this industry www.awardspersonalization.org Awards and Personalization Association www.iamart.org iAMart www.candles.org National Candle Association www.nrf.com National Retail Federation www.tma.org Tobacco Merchants Association IBISWorld writes over 1000 US industry reports, which are updated up to four times a year. To see all reports, go to www.ibisworld.com Provided to: Autobahn Consultants (2134210691) | 27 October 2019 WWW.IBISWORLD.COM Small Specialty Retail Stores in the US July 2019 4 Industry at a Glance Small Specialty Retail Stores in 2019 Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24 Snapshot $38.6bn 3.2% -2.5% Profit Wages Businesses $2.0bn $5.0bn 141,850 Revenue vs. employment growth Per capita disposable income Market Share There are no major 8 4 players in this industry 4 2 0 0 % change % change -4 -2 -8 -4 Year 11 13 15 17 19 21 23 25 Year 13 15 17 19 21 23 25 Revenue Employment SOURCE: WWW.IBISWORLD.COM p. 26 Products and services segmentation (2019) 2.4% Art materials Key External Drivers and supplies 4.2% Per capita disposable Groceries and 7.5% alcoholic beverages income Home goods E-commerce sales Consumer 13.8% 34.3% Confidence Index Pools, pool chemicals, pool Tobacco products and supplies and accessories smokers' accessories Excise tax on tobacco products 15.8% Collectibles and monuments p. 5 22.0% Other SOURCE: WWW.IBISWORLD.COM Industry Structure Life Cycle Stage Decline Regulation Level Light Revenue Volatility Medium Technology Change Low Capital Intensity Low Barriers to Entry Low Industry Assistance Low Industry Globalization Low Concentration Level Low Competition Level High FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32 Provided to: Autobahn Consultants (2134210691) | 27 October 2019 WWW.IBISWORLD.COM Small Specialty Retail Stores in the US July 2019 5 Industry Performance Executive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage Executive Summary Operators in the Small Specialty Retail operators through one-stop shopping and Stores industry sell a diverse range of lower prices for similar products. products, from premium cigars to grave External competition has also driven markers. Due to its fragmented nature, underperforming retailers to exit the the industry is not driven by product- industry. However, while external specific trends but rather by broad competition has squeezed the industry’s macroeconomic variables. However, market size, rising income levels and individual segments do respond to confidence during the period have limited specific shifts in consumer preferences. revenue declines. Nonemployers and Over the five years to 2019, rising income small retail stores with low barriers to and employment have boosted demand entry dominate this industry, promoting throughout the retail sector. Despite this, a fluidity for companies to enter and exit. small specialty stores are experiencing Despite moderate revenue declines, the increasing competition from e-commerce number of enterprises in this industry is and department stores, limiting gains marginally increasing. Small companies are able to start up with low capital input, and they are increasingly attempting to Rising income and employment have boosted generate higher margins on more premium items. demand throughout the retail sector Over the five years to 2024, industry revenue is forecast to decline at an from increased consumer spending. annualized rate of 2.5% to $34.0 billion. Overall, IBISWorld expects industry IBISWorld anticipates consumer revenue to increase at an annualized rate spending will rise while consumer of 3.2% to $38.6 billion over the five confidence is expected to decrease. years to 2019. High growth in this period Consequently, increasing levels of has been driven by large increases in discretionary spending will focus on price 2015 and 2016 as a result of double-digit over specialty. Furthermore, industry growth in the Consumer Confidence participation is expected to expand at a Index in 2014 and 2015. much slower rate. Underperforming However, revenue is expected to companies are expected to exit, while the decline 4.2% in 2019 as e-commerce sales few large companies are expected to improve and consumer confidence wanes acquire smaller ones. Additionally, tough due to prolonged slow growth and external competition and the rising uncertainty. Discount department stores popularity of online sales are expected to and online retailers have increasingly reduce the industry’s share of the overall taken retail market share from industry retail sector. Key External Drivers Per capita disposable income increase in 2019, representing a The majority of products supplied by potential opportunity for the industry. this industry are discretionary items. A rise in household disposable income E-commerce sales increases the propensity of consumers E-commerce retailers often offer to purchase these goods, leading to substitute industry products at heavily growth in demand. Per capita discounted prices. In addition, specialty disposable income is expected to items, such as rare cigars and collectibles, Provided to: Autobahn Consultants (2134210691) | 27 October 2019 WWW.IBISWORLD.COM Small Specialty Retail Stores in the US July 2019 6 Industry Performance Key External Drivers are sometimes easier to find and industry tend to be discretionary in continued purchase online. Therefore, as more nature, industry revenue tends to consumers visit online retailers for their positively correlate with the index. The shopping needs, demand for brick-and- Consumer Confidence Index is expected mortar establishments will fall. to decrease in 2019. E-commerce sales are expected to increase in 2019, posing a potential Excise tax on tobacco products threat to the industry. Tobacco sales have historically comprised almost one-third of revenue for the Small