Industry Analysis & Industry Trends
Despite strong competition from online-only retailers, as well as volatile trading conditions and widespread discounting, the industry has performed relatively well, recording growth in each of the past four years. At the start of the five years through 2016-17, the industry had to contend with the lingering effects of the economic downturn. However, the industry as a whole continued to grow throughout this period. Consumer confidence rebounded and economic conditions improved strongly from 2013-14 onwards, much to the benefit of department stores. However, the industry has continues to face intense external competition from online-only retailers and the expansion of supermarkets into non-food items... purchase to read more
Industry Report - Starting a New Business Chapter
The Department Stores industry has high barriers to entry. Although it is relatively easy to open a discount variety store, department stores are not easy to set up. Renting a large building, obtaining fixtures and fittings and hiring workers make set-up costs quite high. With such prohibitive start-up costs, entering the industry is not easy.
The location of a store can make or break a business in the industry. To be successful, a new entrant would need at least one high-street shop and rental prices in those locations are quite expensive. Acquiring stock could prove difficult for potential entrants. The established players in the industry have access to economies of scale and can pay lower prices because they purchase products in bulk. Ret.. purchase to read more