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Growth will slow as consumers with higher disposable incomes prefer to buy newer items. For this reason, industry research firm IBISWorld has added a report on the Used Good Stores industry to its growing industry report collection.
New York, NY (PRWEB) February 13, 2014
The Used Goods Stores industry of Canada sells clothing, antiques and collectibles, books, baby equipment, electronics, furniture, housewares, garden equipment, sporting goods, tools, toys and musical instruments. The industry can be divided into for-profit and not-for-profit entities. Not-for-profits have charitable aims, serving low-income, impoverished communities. For-profit industry operators, for the most part, provide high-quality used items, such as woman's clothing (i.e. designer brands), at more attractive prices than department stores.
Revenue in this industry is countercyclical, rising in periods of poor macroeconomic performance. As in the United States, Canada suffered from high unemployment and a drop in disposable income during the recession. According to IBISWorld Industry Analyst Stephen Morea, By 2009, unemployment spiked to 8.3% in Canada and in 2010 per capita disposable income fell 0.3%. These factors caused many cash-strapped consumers to opt for less expensive used goods rather than purchasing new items from retail stores. As a result, in 2010, revenue in the Used Good Stores industry soared by 18.2%. Largely because of these robust gains, industry revenue is expected to rise at an average annual rate of 4.1% to $1.3 billion in the five years to 2014. However, like the United States, improving economic conditions in Canada caused industry revenue growth to stall as consumers switched back to purchasing new items. Used Goods Stores industry revenue has risen at a much slower rate after 2010 and is even projected to decline 1.7% in 2014, as the health of the average Canadian consumer improves.
Although the recovery in Canada has been tepid, with unemployment remaining stubbornly high and only modest increases projected for per capita income and GDP, economic conditions are anticipated to continue to improve from 2014 to 2019, which will have a dampening effect on industry revenue. Also, increased competition from discount department stores offering a wide array of new household goods at relatively low prices is expected to further diminish growth. Thanks to rising disposable income levels and higher competition, industry revenue is projected to increase in the five years to 2019, says Morea.
For more information, visit IBISWorlds Used Good Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
The Used Goods Stores industry collects or purchases used merchandise and sells these goods directly to consumers. The industry includes thrift stores and pawnshops but excludes stores that sell secondhand motor vehicles and parts, such as automobiles, recreational vehicles, motorcycles, boats and tires.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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