WWW.IBISWORLD.COM Family Clothing Stores in the US August 2019 1 Family fashion: Revenue will continue to grow, despite threats from competing industries This report was provided to Emerald Expositions (2134005483) by IBISWorld on 08 October 2019 in accordance with their license agreement with IBISWorld IBISWorld Industry Report 44814 Family Clothing Stores in the US August 2019 Claire O’Connor 2 About this Industry 16 International Trade 28 Revenue Volatility 2 Industry Definition 17 Business Locations 29 Regulation and Policy 2 Main Activities 30 Industry Assistance 2 Similar Industries 19 Competitive Landscape 3 Additional Resources 19 Market Share Concentration 31 Key Statistics 19 Key Success Factors 31 Industry Data 4 Industry at a Glance 19 Cost Structure Benchmarks 31 Annual Change 21 Basis of Competition 31 Key Ratios 5 Industry Performance 22 Barriers to Entry 32 Industry Financial Ratios 5 Executive Summary 22 Industry Globalization 5 Key External Drivers 33 Jargon & Glossary 7 Current Performance 23 Major Companies 9 Industry Outlook 23 The TJX Companies Inc. 11 Industry Life Cycle 24 Ross Stores Inc. 25 Gap Inc. 13 Products and Markets 26 Abercrombie & Fitch Co. 13 Supply Chain 13 Products and Services 27 Operating Conditions 14 Demand Determinants 27 Capital Intensity 15 Major Markets 28 Technology and Systems www.ibisworld.com | 1-800-330-3772 | [email protected] WWW.IBISWORLD.COM Family Clothing Stores in the US August 2019 2 About this Industry Industry Definition Family clothing retailers stock a general Additional services include basic line of new clothing for men, women and alterations such as hemming, taking in or children without specializing in apparel letting out seams and lengthening or for a particular gender or age group. shortening sleeves. Main Activities The primary activities of this industry are Retailing women’s casual apparel Retailing men’s casual apparel Retailing women’s formal apparel Retailing men’s formal apparel Retailing infants’ and children’s apparel The major products and services in this industry are Children’s wear Men’s casual wear Men’s formal wear Women’s casual wear Women’s formal wear Other men’s wear Other women’s wear Similar Industries 44811 Men’s Clothing Stores in the US This industry retails new men’s and boys’ clothing. 44812 Women’s Clothing Stores in the US This industry retails new women’s, misses’ and juniors’ clothing. 44813 Children’s & Infants’ Clothing Stores in the US This industry retails new children’s and infants’ clothing. 45211 Department Stores in the US This industry retails new men’s and boys’, women’s and girls’ and children’s and infants’ clothing. 45331 Used Goods Stores in the US This industry retails secondhand clothing. 45411a E-Commerce & Online Auctions in the US This industry provides websites for facilitating consumer-to-consumer or business-to-business trade in clothing on an auction and sales basis. 45411b Mail Order in the US This industry retails clothing via mail catalogs or TV from catalog showrooms or mail-order houses. 81149b Other Personal and Household Goods (except Boat, Motorcycle and Bicycle) Repair and Maintenance in the US This industry provides clothing alterations and repairs. Provided to: Emerald Expositions (2134005483) | 08 October 2019 WWW.IBISWORLD.COM Family Clothing Stores in the US August 2019 3 About this Industry Additional Resources For additional information on this industry www.wewear.org American Apparel & Footwear Association www.bls.gov US Bureau of Labor www.census.gov US Census Bureau www.hhs.gov US Department of Health and Human Services 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: Emerald Expositions (2134005483) | 08 October 2019 WWW.IBISWORLD.COM Family Clothing Stores in the US August 2019 4 Industry at a Glance Family Clothing Stores in 2019 Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24 Snapshot $112.4bn 0.9% 0.6% Profit Wages Businesses $4.6bn $12.7bn 25,045 Revenue vs. employment growth Per capita disposable income Market Share The TJX 18 4 Companies Inc. 12 2 15.0% 6 Ross Stores Inc. 0 0 14.1% % change % change -2 Gap Inc. -6 7.3% -12 -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. 23 Products and services segmentation (2019) 4.4% Key External Drivers Men's formal wear Per capita disposable 7.7% Other men's wear income 29.8% External competition 10.7% Women's casual wear for the Family Clothing Women's formal wear Stores industry Number of adults aged 20 to 64 Import penetration into the manufacturing sector 12.1% Children's wear World price of cotton p. 5 15.5% 19.8% Other women's wear Men's casual wear SOURCE: WWW.IBISWORLD.COM Industry Structure Life Cycle Stage Mature Regulation Level Medium Revenue Volatility Low Technology Change Low Capital Intensity Low Barriers to Entry Medium Industry Assistance Low Industry Globalization Low Concentration Level Low Competition Level High FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 31 Provided to: Emerald Expositions (2134005483) | 08 October 2019 WWW.IBISWORLD.COM Family Clothing Stores in the US August 2019 5 Industry Performance Executive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage Executive Summary The Family Clothing Stores industry and macroeconomic conditions, such as consists of retail establishments that sell per capita disposable income. Demand is apparel for men, women and children also affected by changes in the prices of without clear specialization in gender or inputs, which have fluctuated over the age. Over the five years to 2019, the past five years, causing some volatility in industry has experienced moderate growth profit margins. Lastly, industry operators in revenue. Despite faring well in some contend with intense and growing years, its growth has been volatile at times. competition from external sources, such An emergent trend has been the growth of as department stores and online retailers, luxury malls and specialty clothing stores which further influences profit. Increased at the expense of traditional malls with competition has also contributed to stores such as Sears and J. C. Penny. The consolidation in the industry. poor performance of companies that were IBISWorld forecasts continued and steady growth for the Family Clothing Stores industry. Revenue is anticipated to Intense price-based competition and increases grow at an annualized rate of 0.6% to in key input prices have cause profit margins to $115.9 billion over the five years to 2024. As the economy continues to grow and shrink slightly consumer spending rises, shoppers will increasingly purchase clothes for once powerhouses in the industry has discretionary purposes rather than dragged revenue. Consequently, revenue is function. New stores will likely open to estimated to increase at an annualized rate meet growing demand, pushing up the of 0.9% to $112.4 billion over the five years total number of family clothing retail to 2019, including 0.8% growth in 2019 locations. However, threats loom from alone. Despite increased demand for competing industries, especially the premium-priced industry products, intense E-Commerce and Online Auctions price-based competition and increases in industry (IBISWorld report 45411a). key input prices have caused profit margins E-tailers offer consumers convenient to shrink slightly. options that are not found in traditional Demand for industry products is brick-and-mortar stores, such as the mainly determined by demographic shifts ability to compare selections and prices. Key External Drivers Per capita disposable income External competition for the Demand for clothing is largely related to Family Clothing Stores industry fluctuations in household disposable Industry retailers are adversely affected income. When per capital disposable by competition from substitutes, such as income increases, consumers are more specialty clothing stores (e.g. women’s likely to increase their discretionary clothing stores). As consumers buy more spending, including spending on high-end clothing from competing providers, clothing. Conversely, when household demand for industry establishments disposable income falls, consumers scale decreases. Industry retailers also back their clothing purchases to reflect experience competition from department their budgetary constraints. Per capita stores, which generate over 50.0% of disposable income is expected to increase their revenue from clothing, making in 2019, representing a potential them major players in the clothing retail opportunity for the industry. sector. External competition is expected Provided to: Emerald Expositions (2134005483) | 08 October 2019 WWW.IBISWORLD.COM Family Clothing Stores in the US August 2019 6 Industry Performance Key External Drivers to increase in 2019, representing a India and China. Imported goods offer continued potential threat to the industry. lower purchasing costs to industry operators, thus facilitating higher profit Number of adults aged 20 to 64 margins. However, there may not be The number of adults in the United much room for import growth in the near States affects demand for family clothing, future, given that imports already satisfy as a larger population necessitates more a large portion of demand for family clothing. Stores in this industry retail clothing in the United States. clothing for all genders and age groups,