Clearance sale: Consumers will turn to department stores and e-commerce, hampering industry growth

Operators in the Small Specialty Retail Stores industry sell a diverse range of products, from premium cigars to grave markers. Due to its fragmented nature, the industry is not driven by product-specific trends but rather by broad macroeconomic variables. However, individual segments do respond to specific shifts in consumer preferences. Over the five years to 2018, rising income and employment have boosted demand throughout the retail sector. Despite this, small specialty stores are experiencing increasing competition from e-commerce and department stores, limiting gains from increased consumer spending. Over five years to 2023, industry revenue is forecast to slightly decline. IBISWorld anticipates consumer spending will rise while consumer confidence is expected to decrease...purchase to read more.

Industry Statistics & Market Size
Revenue
$40bn
Annual Growth 13-18
0.2%
Forecast Growth 18-23
Profit
Employment
244,583
Businesses
146,071
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Larger competitors have taken market share by providing one-stop shopping and lower prices
  • Competition from external retailers, especially e-commerce and auction websites, will increase
  • Although the industry is in decline, a market remains for effective stores to operate in the industry
  • Industry Report - Industry Key Buyers Chapter

    The Small Specialty Retail Stores industry exhibits low market share concentration. IBISWorld estimates that the four largest players in the industry will account for an estimated 6.8% of revenue in 2018, with no retailer accounting for more than 2.5%. The industry is highly fragmented, characterized by a large number of small players that are privately owned and operated. In 2018, an estimated 69.2% of enterprises have fewer than five employees, while only 2.3% of enterprises are estimated to employ more than 20 workers.In recent years, industry concentration has been on the rise primarily due to increased external competition. Ext...purchase to read more.

    Additional Insights for the Small Specialty Retail Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Small Specialty Retail Stores Industry are

  • Ability to control stock on hand
  • Access to niche markets
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as commerce sales and Per capita disposable income in the Small Specialty Retail Stores industry impact industry performance..

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    What's in this report

    What is the Small Specialty Retail Stores Industry?

    Industry operators retail specialized lines of goods: kitchenware, art supplies, cigarettes and cigars, collectors’ items, fireworks and trophies. This industry also includes general merchandise auction houses (except electronic auctions), but excludes mass merchandisers, department stores, grocery stores, warehouse clubs and supercenters.

    Industry Products
  • Tobacco products and smokers' accessories
  • Pools, pool chemicals, pool supplies and accessories
  • Collectibles and monuments
  • Home goods
  • Groceries and alcoholic beverages
  • Art materials and supplies
  • Industry Activities
  • Retailing general merchandise
  • Retailing tobacco and tobacco products (e.g. cigarettes and cigars)
  • Retailing art supplies
  • Retailing collectors' items (e.g. autographs, cards, coins and stamps)
  • Retailing fireworks
  • Retailing candles
  • Retailing religious goods (except books)
  • Retailing trophies
  • Retailing specialized occupational supplies
  • Retailing calendars
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • commerce sales
  • Per capita disposable income
  • Consumer Confidence Index
  • Excise tax on tobacco products

  • Current Performance
  • External competition intensifies
  • Stagnant margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Online competition
  • Social and structural change
  • Table: Small Specialty Retail Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Small Specialty Retail Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Janitorial Services
  • Fine Arts Schools
  • Home Care Providers
  • Religious Organizations
  • Consumers

  • Key Selling Industries
  • Art & Office Supply Manufacturing
  • Cigarette & Tobacco Products Wholesaling
  • Greeting Cards & Other Publishing
  • Textile Mills
  • Toy & Craft Supplies Wholesaling

  • Products & Services
  • Tobacco products and smokers' accessories
  • Other
  • Collectibles and monuments
  • Pools, pool chemicals, pool supplies and accessories
  • Home goods
  • Groceries and alcoholic beverages
  • Art materials and supplies
  • Chart: Small Specialty Retail Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 45 to 64
  • Consumers aged 25 to 44
  • Consumers aged 65 and older
  • Businesses
  • Consumers aged 24 and younger
  • Chart: Major Market Segmentation for the Small Specialty Retail Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Small Specialty Retail Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Small Specialty Retail Stores Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Small Specialty Retail Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Small Specialty Retail Stores Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • E-commerce sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Big-Box Store
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, household goods and other consumer products.
  • Brick-And-Mortar Store
  • A store that has a physical presence and location, as opposed to an online retailer.
  • E-Cigarette
  • A device that vaporizes tobacco liquids, to avoid inhaling smoke.
  • E-Tailer
  • A retailer that primarily sells goods and services via the internet. Many of these companies do not have brick-and-mortar locations.
  • Electronic Data Interchange
  • The transmission of electronic documents between businesses from one computer system to another.
  • Hookah
  • Pipe instrument for vaporizing and smoking various tobacco products.
  • Point Of Sale
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Small Specialty Retail Stores contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

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    This report on Small Specialty Retail Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Small Specialty Retail Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Small Specialty Retail Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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