Moderate growth for housewares | IR News

Moderate growth for housewares

Posted Date: 12/02/2013

By Inside Retail

The houseware retailing industry is expected to increase at an annualised 0.1 per cent over the five years through 2012-13, according to an IbisWorld report.

From cooking utensils to table linen, the houseware retailing industry sells a wide range of products. The industry faces competition from other stores that sell housewares, such as department stores and supermarket, says IbisWorld.

The industry has a low level of concentration, with the five biggest companies - Reject Shop Limited, Steinhoff Asia Pacific, Ikea, Tupperware Australia, and Copperart – accounting for a small share of revenue.

IbisWorld industry analyst, Ricky Willianto says: “these large players have diversified operations and are not solely committed to the industry, indicating that housewares are accessible from a wide range of retailers”.

The houseware retailing industry is influenced by trends in new dwelling commencements, alterations to existing dwellings and the level of discretionary spending in the economy.

As the economic downturn hit and consumers tightened their spending, the industry suffered. Job concerns fuelled by rising unemployment and slower GDP growth resulted in a fall in houseware spending.

“Price substitution became important as households downgraded from premium products,” says Willianto. After falling for three consecutive years, industry revenue returned to growth in 2011-12.

As a result, revenue is expected to increase at an annualised 0.1 per cent over the five years through 2012-13.

Revival in the industry in the past few years is partly due to the popularity of reality television shows, including DIY home design programs and cooking shows.

These programs inspire people to take up cooking or home redecorating as pastime activities.

Over the next five years, revenue is forecast to return to moderate growth as housing construction activity and household spending increase due to improving consumer confidence. For more information, visit IBISWorld’s Houseware Retailing report in Australia industry page.

Keywords: Ibisworld, housewares

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