Industry Analysis & Industry Trends
Escalating external competition from online and mainstream adult product retailers, which increasingly carry vibrators and other erotica, has reduced the stigma associated with shopping at adult stores. As consumers see more sex paraphernalia featured on TV and in stores like Walmart, such items shift from taboo toward more of a social norm. The industry performed especially well when disposable income dipped during the Great Recession because consumers were less likely to spend on substitute entertainment, like eating out or going to the movies. Nonetheless, tighter consumer budgets did result in more sales of cheaper items during the past five years. Through 2018, the industry is anticipated to benefit from rising disposable income and growing social acceptance of sex paraphernalia.... purchase to read more
Industry Report - Industry Investment Chapter
The Adult Stores industry has a low level of capital intensity. For every dollar spent on capital, about $18.87 is spent on wages. Industry operators require mostly human labor to run adult stores. Small industry operators rely heavily on human labor for daily operations. Employee duties include customer service, store maintenance, stocking and managing inventory and processing transactions. As the industry grew, over the past five years, wages have increased at an average annual rate of 10.7% to $172.5 million in 2013.
Capital expenditures in this industry include store fixtures and decorations, cash registers, computerized sales machines, storage units and other equipment relating to retail sales... purchase to read more