Industry Analysis & Industry Trends
Despite struggles across the entire retail sector, the rapidly growing Health Stores industry has performed well over the past five years. The needs of the aging population, trends toward increased healthy living and improving per capita disposable income are all contributing to the industry's growth. In particular, changing attitudes toward personal healthcare are driving demand for natural and antiaging products. As a result, revenue is expected to rise during the five years to 2016, and moderate growth is expected to continue during the next five years. Despite cost-reduction efforts, profit margins are expected to fall, as competition from new market entrants, mass merchandisers and online retailers intensifies and drives down prices... purchase to read more
Industry Report - Industry Investment Chapter
The Health Stores industry has a low level of capital intensity. Wages account for 20.8% of revenue in 2016, while depreciation is expected to be 1.2% of revenue. IBISWorld estimates that for every dollar spent on wages, industry operators will spend $0.06 in capital investment. This is typical of most retailing industries, which rely more on labor than on capital investment. In the Health Stores industry, staff with strong product knowledge that can offer helpful product advice and assist customers in making a purchasing decision are critical to a store’s success. This is particularly the case amid mounting competition from online retailers. Knowledgeable staff members offer retailers a competitive advantage in customer service.
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