Tight on money: Intense competition from online retailers has caused industry revenue to decline

Operators in the Discount Variety Stores industry have experienced difficult trading conditions over the past five years. The industry has lost a significant portion of its customer base due to greater competition from external competitors such as discount department stores and online retailers. As most industry goods are perceived to be counter-cyclical in nature, the rise in discretionary incomes over the past five years has led to an overall decline in demand for industry goods. As a result, industry revenue is expected to fall at an annualised 2.3% over the five years through 2018-19, to $2.3 billion.The industry consists of a few larger players and numerous smaller owner-operated stores...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
-2.3%
Forecast Growth 19-24
Profit
Employment
16,267
Businesses
1,951
Market Share of Companies

Industry Threats & Opportunities

  • Rising discretionary incomes have led to an overall decline in demand for industry goods
  • Consumers of industry products are highly price sensitive and generally uninterested in brands
  • Discount department stores and online shopping will continue to put pressure on the industry
  • Industry Report - Industry Key Buyers Chapter

    The Discount Variety Stores industry displays moderate market share concentration. The four largest industry players are expected to account for over 40% of industry revenue in the current year. The remaining share of the market is highly fragmented and largely controlled by small operators, many of which employ less than 20 people.Market share concentration has risen over the past five years. The industry's largest player, Reject Shop Limited, has grown marginally over the period, while Daiso and new player Miniso have both increased dramatically over the period. However, many other operators have found it increasingly difficult to remain competitive in the industry. For...purchase to read more.

    Additional Insights for the Discount Variety Stores Industry

    IBISWorld has determined the most important Key Success Factors for the Discount Variety Stores are:

  • Effective cost controls
  • Having a clear market position
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Discount Variety Stores industry impact industry performance..

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    What's in this report

    What is the Discount Variety Stores Industry?

    Discount variety stores retail general merchandise such as food products, toys, household goods, hardware, furniture, apparel and novelty products. These goods are typically inexpensive and are offered at discounted prices. The industry excludes department stores, supermarkets and warehouse clubs.

    Industry Products
  • Clothing, footwear and accessories
  • Food and drink
  • Household products
  • Personal-care products
  • Other products
  • Industry Activities
  • Retailing food at discount prices
  • Retailing furniture at discount prices
  • Retailing household goods at discount prices
  • Retailing apparel at discount prices
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from online shopping
  • Trade-weighted index

  • Current Performance
  • Counter-cyclical activity
  • Emerging competition
  • High profile struggles
  • Chart: Revenue Growth

  • Industry Outlook
  • Continuing competition
  • Australian dollar fluctuations
  • Niche markets
  • Table: Discount Variety Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Discount Variety Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Clothing Wholesaling
  • Cosmetics and Toiletry Wholesaling
  • Furniture and Floor Covering Wholesaling
  • General Line Grocery Wholesaling
  • Toy and Sporting Goods Wholesaling

  • Products & Services
  • Household products
  • Other products
  • Personal-care products
  • Clothing, footwear and accessories
  • Food and drink
  • Chart: Discount Variety Stores Industry Products and Services Segmentation

  • Demand Determinants
  • Economic climate
  • Convenience
  • Quality
  • Season

  • Major Markets
  • Lowest income quintile
  • Second income quintile
  • Third income quintile
  • Fourth income quintile
  • Highest income quintile
  • Chart: Major Market Segmentation for the Discount Variety Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Discount Variety Stores

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Discount Variety Stores Industry

  • Industry Globalization
    Reject Shop Limited,
  • Table: Reject Shop Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Discount Variety 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 Discount Variety Stores Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ecommerce
  • The sale and purchase of goods transacted via the internet.
  • Point Of Sale
  • The place where a transaction takes place, usually involving computerisation and data analytics.
  • Radio Frequency Identification (Rfid)
  • Wireless computer chips that store information about products including source, destination and price.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Discount Variety Stores market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Discount Variety 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 Discount Variety 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 Discount Variety Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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