Industry Analysis & Industry Trends
Escalating external competition from online and mainstream adult product retailers, which increasingly carry vibrators and other erotica, has pressured growth in the Adult Stores industry. Over the past five years, as shoppers enjoyed the benefits of purchasing adult products online, which include anonymity, wider purchase selection and lower prices, industry revenue grew moderately. Still, the widespread acceptance of sex paraphernalia, evidenced by mainstream stores such as Walmart and CVS carrying some adult products and increased sexuality on TV, has helped boost demand for industry stores. In the coming years, the industry is anticipated to benefit from rising disposable income, which will increase spending on adult 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 wages, industry operators spend about $0.07 on capital investment. Industry operators require mostly human labor to run adult stores, with little room to innovate through the use of capital; employee duties include customer service, store maintenance, stocking and managing inventory and processing transactions. The industry's level of capital intensity has remained unchanged over the past five years.
Capital expenditures in this industry include store fixtures and decorations, cash registers, computerized sales machines, storage units and other equipment relating to retail sales. Point-of-sale systems have allowed operators to computerize their inventory, allowing them to better manage stock... purchase to read more