Discount Variety Stores in Australia - Industry Market Research Report

Discount Variety Stores in Australia - Industry Market Research Report

Discount Variety Stores in Australia

Times have been tough for discount variety stores. Mounting external competition from discount department stores, supermarkets and online-only retailers means discount variety stores have lost significant revenue. The counter-cyclical nature of discount variety goods has also hampered revenue prospects. Rising discretionary income and selected years of positive consumer sentiment has helped consumers substitute spending away from discount items and towards more mid-tier products. Profitability has also suffered, with rising purchase costs, thanks to a depreciation in the Australian dollar, eroding profit margins. All in all, industry revenue has been falling at an annualised 2.2% over the past five years and is expected to total an estimated $2.0 billion in 2022-23, when revenue will dip by an estimated 1.4%.

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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.