Maxed out: Competition from online outlets will continue to weaken industry revenue

Despite macroeconomic growth, the Department Stores industry in Canada has declined over the five years to 2019 due to increased external competition from supercentres and e-commerce sites. Department stores sell a wide range of general merchandise, including apparel, cosmetics, home furnishings, appliances and toys. Comparatively, supercentres offer similar merchandise, along with groceries. Online companies are increasingly undercutting traditional department store prices since they save on operational costs. To better compete, industry operators have lowered selling prices, offered increased promotional deals and strengthened their marketing campaigns. Over the five years to 2024, the industry is forecast to continue contracting...read more.

Industry Statistics & Market Size
Revenue
$24bn
Annual Growth 14-19
-2.9%
Forecast Growth 19-24
Profit
Employment
99,143
Businesses
11

Industry Threats & Opportunities

  • Consumers are increasingly opting to make purchases at supercentres due to the convenience of a one-stop shop
  • Company exits will reduce the number of industry establishments
  • Declines in industry demand will continue to force store closures
  • Industry Report - Industry Locations Chapter

    The distribution of industry establishments closely follows the Canadian population. This is typically the case with retail industries because they rely heavily on consumer purchases. Consequently, because Ontario accounts for the largest share of the Canadian population at 38.6%, it holds the largest number of industry establishments at 37.8%. Toronto accounts for the most significant share of both population and industry locations. Being on the Great Lakes gives the province an established transportation network with easy access to imports from the United States. Quebec also holds a large share of the country's population and the industry's establishments, at 22.6% and 17.5%, respectively. The province has access to key waterways that make transporting goods easier and less costly...purchase to read more.

    Additional Insights for the Department Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Department Stores Industry are

  • Ability to control stock on hand
  • Attractive product presentation
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Number of fixed broadband connections in the Department Stores industry impact industry performance..

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    What's in this report

    What is the Department Stores Industry?

    This industry retails a broad range of general merchandise in one store, such as apparel, jewellery, cosmetics, home furnishings, general household products, toys, appliances and sporting goods. Discount department stores, which are also included in the industry, retail similar lines of goods at low prices. Big-box retailers and supercentres that offer fresh groceries in their stores and warehouse clubs that operate under membership programs, however, are not included in this industry.

    Industry Products
  • Women's wear
  • Men's wear
  • Furniture and household appliances
  • Toys and hobby items
  • Drugs and cosmetics
  • Footwear
  • Children's wear
  • Industry Activities
  • Retailing women's wear
  • Retailing men's wear
  • Retailing children's wear
  • Retailing footwear
  • Retailing furniture and household appliances
  • Retailing toys and hobbies
  • Retailing drugs and cosmetics
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Number of fixed broadband connections
  • Population
  • World price of crude oil

  • Current Performance
  • Rising competition
  • Changing landscape
  • Demand conditions and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition intensifies
  • Shopaholics on the rise
  • Table: Department Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Department Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Ceramics Manufacturing in Canada
  • Clothing & Clothing Accessories Wholesaling in Canada
  • Footwear Wholesaling in Canada
  • Hardware Manufacturing in Canada
  • Household Furniture Manufacturing in Canada
  • Major Household Appliance Manufacturing in Canada
  • Manufacturing In Canada
  • Shoe & Footwear Manufacturing in Canada

  • Products & Services
  • Furniture and household appliances
  • Other
  • Women's wear
  • Drugs and cosmetics
  • Men's wear
  • Children's wear
  • Toys and hobby items
  • Footwear
  • Chart: Department Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest quintile
  • Fourth quintile
  • Third quintile
  • Second quintile
  • Lowest quintile
  • Chart: Major Market Segmentation for the Department Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Department Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Department Stores Industry

  • Industry Globalization
    Canadian Tire Corporation Limited, Hudson's Bay Company, Walmart Inc.,
  • Table: Canadian Tire Corporation Limited - financial performance
  • Table: Hudson's Bay Company - financial performance
  • Table: Walmart Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Department Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Department Stores Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Per Capita Disposable Income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big-Box Retailer
  • A retail store that is differentiated by its sheer size and wide range of products, including electronics, household goods and other consumer items.
  • Brick-And-Mortar
  • A store that has a physical presence and location.
  • Point-Of-Sale (Pos)
  • A system used at checkout in retail stores, using computers and cash registers to capture transaction data at the time and place of sale.
  • Radio-Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • What Our Customers Say

    Why buy this report?

    The Department Stores market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Department Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Department Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Department Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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