Department stores have struggled over the past five years due to a weak retail environment and low consumer confidence following instability in global financial markets. Consumers have become increasingly price conscious and reluctant to spend their discretionary income, preferring to pay down debt and increase their savings instead. Over the five years through 2015-16, industry revenue is forecast to contract at an annualised 0.9% to $18.1 billion. Despite record low interest rates, consumers are expected to remain frugal in 2015-16, with industry revenue forecast to decline by 1.2%.
Department stores retail fabrics, soft goods, clothing, chinaware, glassware, housewares, perfumes, cosmetics, toiletries, furniture and household appliances. Goods are normally sold through separate instore departments. Department stores purchase products from wholesalers and manufacturers and sell them to consumers, generally without changing the 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.