Decent supply: Rising incomes will aid revenue, despite a slump in the agricultural sector

Over the five years to 2016, as the economy recovered from the effects of the recession, revenue for the Farm Supply Stores industry increased. Moreover, the industry is expected to continue growing over the next five years. Stable, nondiscretionary products that stores sell will be a major driver of sales over the period, partially stabilizing the negative effects of a slumping agricultural sector. Nevertheless, agricultural industries are expected to stabilize toward the end of the five-year period, again contributing to industry growth. Interest rates are also expected to stay low in the next five years, helping rural consumers access credit to purchase bigger ticket items for home repair or farm and ranch equipment upgrades...purchase to read more.

Industry Statistics & Market Size
Annual Growth 11-16
Forecast Growth 16-21
Market Share of Companies

Industry Threats & Opportunities

  • Rising per capita disposable income is expected to keep industry revenue fairly stable
  • The increase in spending on property upgrades aided farm supply stores’ revenue growth
  • The market has begun to self-correct, leading commodity prices to slump in recent years
  • Industry Report - Industry SWOT Analysis Chapter

    The industry's contribution to the overall economy, measured by industry value added (IVA), is expected to grow an annualized 1.9% in the 10 years to 2021. Meanwhile, US GDP is expected to grow an annualized 2.1% over the same period. The industry's expected annualized IVA growth is a bit slower than GDP's, which is one sign that the industry is in the mature phase of its life cycle, rather than in the growth or decline phase.The industry is not growing extremely quickly, however, leading major players in the industry to pursue growth by means of market share expansion. The industry has been consolidating in recent years, as the total number of retail stores in the industry increases while the number of companies in the industry declines. Thi...purchase to read more.

    Additional Insights for the Farm Supply Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Farm Supply Stores Industry are

  • Access to niche markets
  • Having a wide and expanding product range
  • Providing excellent customer service
  • IBISWorld analysts also discuss how external factors such as Demand from agriculture, forestry, fishing and hunting and Per capita disposable income in the Farm Supply Stores industry impact industry performance..

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    What's in this report

    What is the Farm Supply Stores Industry?

    Stores in this industry sell a variety of home improvement, gardening, livestock and crop products. They are consumer-facing rather than farmer-facing and offer a format similar to traditional home improvement stores. Products sold in these outlets range from garden supplies to power tools, animal feed and power generators.

    Industry Products
  • Agricultural and ranch supplies
  • Clothing and footwear
  • Lawn and garden supplies
  • Power tools, appliances and other hardware
  • Outdoor recreation equipment
  • Pet and other animal feed and supplies
  • Industry Activities
  • Retailing pet and livestock feed
  • Retailing power tools, appliances and hardware
  • Retailing lawn and garden supplies
  • Retailing farm and ranch supplies
  • Retailing clothing, footwear and recreational equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from agriculture, forestry, fishing and hunting
  • Per capita disposable income
  • Access to credit
  • Private spending on home improvements

  • Current Performance
  • Farm economy ups and downs
  • Consumer spending
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Farm economy to stabilize
  • Nondiscretionary sales a boon to industry operators
  • Industry structure
  • Table: Farm Supply Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Farm Supply Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Consumers

  • Key Selling Industries
  • Animal Food Production
  • Farm, Lawn & Garden Equipment Wholesaling
  • Tool & Hardware Wholesaling

  • Products & Services
  • Pet and other animal feed and supplies
  • Power tools, appliances and other hardware
  • Lawn and garden supplies
  • Agricultural and ranch supplies
  • Outdoor recreation equipment
  • Other
  • Clothing and footwear
  • Chart: Farm Supply Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Hobby farmers
  • Rural lifestyle consumers and other enthusiasts
  • Business farms and farmer cooperatives
  • Other
  • Chart: Major Market Segmentation for the Farm Supply Stores Industry

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

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Farm Supply Stores Industry

  • Industry Globalization
    Tractor Supply Company,
  • Table: Tractor Supply Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Farm Supply 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 Farm Supply Stores Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Demand from agriculture (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Related to the sport of horseback riding.
  • Hobby Farmer
  • A person that owns and operates a farm for personal pleasure and not for business.
  • Rural Lifestyler
  • A niche demographic of customers that farm, raise livestock or engage in other agricultural activities recreationally.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Farm Supply Stores is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Farm Supply 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 Farm Supply 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 Farm Supply Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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