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

Despite macroeconomic growth, the Department Stores industry has declined over the five years to 2017, due to increased external competition from supercentres and e-commerce sites. Department stores typically sell a wide range of general merchandise, including apparel, cosmetics, home furnishings, appliances and toys. Comparatively, supercentres offer similar merchandise, as well as groceries. Profit has also suffered over the five years to 2017, as many industry operators have slashed their selling prices in order to remain attractive to customers. Over the five years to 2022, the industry is forecast to continue contracting...read more.

Industry Statistics & Market Size
Revenue
$27bn
Annual Growth 12-17
-1.1%
Forecast Growth 17-22
Profit
Employment
107,380
Businesses
12

Industry Threats & Opportunities

  • The increasing frequency of online shopping has left operators with declining revenue
  • Income stability has led to growing consumer confidence, benefitting the industry
  • Growth will be mitigated by technological advancements and competition from e-tailers
  • Industry Report - Industry Products Chapter

    Women's wear, men's wear and children's wearWomen's, men's and children's wear account for an estimated 33.0% of total department store revenue in 2017. Women's clothing is the industry's largest product segment, with an expected 17.6% of revenue. At 9.7% of industry revenue, men's wear has remained constant, aided by purchases of work wear for professional men. Meanwhile, the purchase of children's clothing is expected to account for 5.7% of revenue in 2017. These figures have all fallen slightly during the reporting period, as segments of other items have grown at a faster rate. Furniture and household appliancesThe furniture and household appliances segment is expected to account for 20.5% of industry revenue. Sal...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 hobbies
  • 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
  • Online Competition
  • Conversions
  • 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
  • Footwear
  • Toys and hobbies
  • 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, Hudson's Bay Company, Walmart Stores Inc.,
  • Table: Canadian Tire - financial performance
  • Table: Hudson's Bay Company - financial performance
  • Table: Walmart Stores 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (2008-2022)

  • 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?

    IBISWorld’s Department Stores market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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