Opportunity Shops in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: January 2024
ANZSIC OD5682
Spotlight Report Revenue
$1.3bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
5,438
Businesses
1,299
Wages
$XXX.Xm
Opportunity Shops in Australia industry analysis
The Opportunity Shops industry has faced volatile trading conditions over the past few years. Pandemic lockdowns, especially protracted restrictions in Melbourne and Sydney, substantially disrupted demand and op shops were forced to close. It wasn’t practical for many of the smaller op shops to open online stores as some retailers did. Decades high inflation and an associated rise in interest rates has wrought a cost-of-living crisis, which catapulted revenue growth into double digits in 2022-23. Overall, revenue is expected to edge up at an average annual rate of 0.6% over the five years through 2023-24, to reach $1.32 billion. This includes an anticipated decline of 2.9% in 2023-24, following surging growth in the prior year as the cost-living-crisis hit. As most op shops are run as charities, they don’t have an explicit focus on building profit, and any surpluses generated are reinvested into operations. Nevertheless, operating surpluses have increased over the past few years, in line with rising demand.
Trends and Insights
- Consumer spending at op shops has fluctuated substantially over the past few years. Sales were volatile during the pandemic with major states in and out of lockdowns, but sales surged in 2022-23, with rampant inflation eating household budgets.
- Demand for clothing and accessories has risen over the past few years. This has been largely driven by younger generations' interest in pre-owned, vintage clothing and Australians struggling with a cost-of-living crisis in recent years.
- Market share concentration among op shops in Australia is moderate. The Salvation Army and the St Vincent de Paul Society are the two largest operators, accounting for close to 40.0% of revenue.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.6 % over the past five years, to reach an estimated $1.3bn in 2024.
Trends and Insights
Op shops thrive in Australia backed by strong consumer and wider community support
- Op shops are the most popular form of used goods retailing in Australia, relying on strong community acceptance of their social value, both for customers and donations.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Op shops are set to expand off the back of a recovery in household income
- Real household discretionary income is poised to grow over the next few years, boosting consumer spending on discretionary items, including those at op shops.
Biggest companies in the Opportunity Shops in Australia
There are no companies that hold a large enough market share in the Opportunity Shops in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Clothing and textiles, Homewares, bric-a-brac and books and Furniture and other products. Clothing and textiles is the largest segment of the Opportunity Shops in Australia.
Trends and Insights
Pre-owned clothing is in high demand among younger generations and Australians facing a cost-of-living crisis
- This segment includes pre-owned clothing, footwear and accessories like hats, handbags, watches and jewellery.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Department Stores in Australia
Complementors
- Charities and Not-for-Profit Organisations in Australia
International industries
- Thrift Stores in the US
Table of Contents
About this industry
Industry definition
This industry is composed of stores that sell donated or recycled goods to customers, with the intent of donating a significant portion of their proceeds to charity. This industry is a subcategory of the Antique and Used Goods Retailing industry, but excludes stores that don’t rely on donated goods.
What's included in this industry?
Clothing and textilesHomewares, bric-a-brac and booksFurnitureCompanies
Purchase this report to view all major companies in this industry.
Related Terms
OP SHOPOPERATING SURPLUSCIRCULAR ECONOMYUPCYCLINGIndustry Code
ANZSIC 4273 - Opportunity Shops in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Consumer spending at op shops has fluctuated substantially over the past few years. Sales were volatile during the pandemic with major states in and out of lockdowns, but sal...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Factors that influence volatility in the industry
- Key success factors for businesses to overcome volatility
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Demand for clothing and accessories has risen over the past few years. This has been largely driven by younger generations' interest in pre-owned, vintage clothing and Austra...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Purchase this report to unlock analyst insights.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Market share concentration among op shops in Australia is moderate. The Salvation Army and the St Vincent de Paul Society are the two largest operators, accounting for close ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Opportunity shops are regulated by the Australian Charities and Not-for-profits Commission. The Federal Government established this body in July 2012 in an effort to maintain...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Operating surpluses serve as an indicator of op shop profitability, with excess revenue funding various charitable programs. Op shops have seen growth in operating surpluses,...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Opportunity Shops industry in Australia in 2024?
The market size of the Opportunity Shops industry in Australia is $1.3bn in 2024.
How many businesses are there in the Opportunity Shops in Australia industry in 2024?
There are 1,299 businesses in the Opportunity Shops industry in Australia, which has grown at a CAGR of 1.2 % between 2019 and 2024.
Has the Opportunity Shops industry in Australia grown or declined over the past 5 years?
The market size of the Opportunity Shops industry in Australia has been growing at a CAGR of 0.6 % between 2019 and 2024.
What is the forecast growth of the Opportunity Shops industry in Australia over the next 5 years?
Over the next five years, the Opportunity Shops industry in Australia is expected to grow.
What does the Opportunity Shops in Australia include?
Clothing and textiles and Homewares, bric-a-brac and books are part of the Opportunity Shops industry.
How competitive is the Opportunity Shops industry in Australia?
The level of competition is high and increasing in the Opportunity Shops industry in Australia.
