Department stores faced a difficult few years due to consumer uncertainty following the global financial crisis, as customers became reluctant to part with their hard-earned cash. The Department Stores industry will continue to face an uphill battle in 2012-13, as consumers remain cautious. Over the five years through 2012-13, industry revenue is expected to contract at an annualised 2.5% to $18.9 billion. Although consumer sentiment is on the rise and interest rates have lowered, consumers are expected to remain frugal with the industry contracting 1.9% over 2012-13.
Department stores retail fabrics, soft goods, clothing, chinaware, glassware, housewares, perfumes, cosmetics, toiletries, furniture and household appliances. Goods are normally sold via separate, in-store departments. Department stores purchase products from wholesalers and manufacturers, and sell them to consumers, generally without changing products. They also undertake activities like customer service, product merchandising, advertising, inventory control and cash handling.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.