Industry Analysis & Industry Trends
The Dollar and Variety Stores industry capitalized on the recession, attracting more middle-class consumers focused on value over quality as disposable incomes fell. In the next five years, however, IBISWorld expects this countercyclical industry to experience slower growth as operators contend with improved economic conditions. While major players are expected to retain some of the added customers acquired during the recession, smaller companies and single-branch operators are less likely to sustain the revenue growth they experienced in recent years. In the next five years, the industry is expected to mature, consolidating under pressure from traditional rivals, such as big box stores... purchase to read more
Industry Report - Industry Investment Chapter
IBISWorld estimates that the Dollar and Variety Stores industry has a medium-low level of capital intensity. This trend is similar to other retail industries, which are generally labor-intensive. In 2016, for every dollar spent on wages, about $0.11 is estimated to be allocated toward capital assets.
This category includes expenditure on physical assets required to operate in this industry. The level of capital expenditure is influenced by the size and number of stores an industry player operates. Examples of capital costs include the purchase of fixtures and fittings (fit-outs) for stores and point-of-sale systems... purchase to read more