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 - Starting a New Business Chapter
The industry has a moderate to high level of concentration with the top four players accounting for 69.9% of industry revenue. Therefore, prospective operators planning to enter this industry may encounter strong competition from incumbent firms. However, the dominance of players fluctuates depending on the region; as such, the barriers to entry vary, depending on where an operator plans to launch new stores.
Like most retailing industries, the majority of operational costs are devoted to the payment of wages rather than to expenditure on capital equipment such as fixtures and fittings. Despite this, operators planning to enter this industry must consider the capital requirements of establishing a new store or purchasing an existing location... purchase to read more