Specialty Retail Industry
Industry Overview
Some 400,000 specialty retail stores operate in the US with combined annual sales of $350 billion CAGR 2002-06: 5% Market is dominated by large players like Best Buy, Toys “R” Us, Gap, Sports Authority, etc The market size of some major product categories: o Shoes and clothing - $125 billion o Electronics and appliances - $85 billion o Jewelry - $25 billion o Sporting goods - $25 billion o Books - $25 billion Other categories include Toys, Music, Luggage, Pet supplies, etc
Specialty retailers cater to a narrow or niche audience – either by location, type of customer or product mix. On a national level, specialty retailing is dominated by national chains, such as office supply store Staples or electronics outlet Best Buy.
However, on the local level, specialty retailing is defined by independently owned, unique shops that express the personalities of their owners. These small retail outlets -- shoe stores, food stores or book stores -- have become the bedrock of downtown and urban redevelopment across the country.
Industry Statistics Dec 2007
Valuation Ratios
P/E(ttm) 22.80
P/Sales(ttm) 1.34
P/Book(mrq) 13.07
P/Cash Flow(mrq) 11.17
Profitability(ttm)
Gross Margin % 34.59%
Operating Margin % 9.54%
Net Profit Margin % 9.19%
Financial Strength (mrq)
Quick Ratio 0.49
Current Ratio 1.46
LT Debt/Equity 110.07
Total Debt/Equity 118.25
Mgt. Effectiveness (ttm)
Return on Invstmt % 13.23%
Return on Assets % 9.09%
Return on Equity % 25.77%
Key Issues
The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon which are gaining considerable market shares in many of the product segments included in the specialty retail sector.
Currently majority revenue is generated by store sales but online sales from the stores’ websites are increasing. With US dollar getting weaker, international sales from these US based websites are
Some 400,000 specialty retail stores operate in the US with combined annual sales of $350 billion CAGR 2002-06: 5% Market is dominated by large players like Best Buy, Toys “R” Us, Gap, Sports Authority, etc The market size of some major product categories: o Shoes and clothing - $125 billion o Electronics and appliances - $85 billion o Jewelry - $25 billion o Sporting goods - $25 billion o Books - $25 billion Other categories include Toys, Music, Luggage, Pet supplies, etc
Specialty retailers cater to a narrow or niche audience – either by location, type of customer or product mix. On a national level, specialty retailing is dominated by national chains, such as office supply store Staples or electronics outlet Best Buy.
However, on the local level, specialty retailing is defined by independently owned, unique shops that express the personalities of their owners. These small retail outlets -- shoe stores, food stores or book stores -- have become the bedrock of downtown and urban redevelopment across the country.
Industry Statistics Dec 2007
Valuation Ratios
P/E(ttm) 22.80
P/Sales(ttm) 1.34
P/Book(mrq) 13.07
P/Cash Flow(mrq) 11.17
Profitability(ttm)
Gross Margin % 34.59%
Operating Margin % 9.54%
Net Profit Margin % 9.19%
Financial Strength (mrq)
Quick Ratio 0.49
Current Ratio 1.46
LT Debt/Equity 110.07
Total Debt/Equity 118.25
Mgt. Effectiveness (ttm)
Return on Invstmt % 13.23%
Return on Assets % 9.09%
Return on Equity % 25.77%
Key Issues
The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon which are gaining considerable market shares in many of the product segments included in the specialty retail sector.
Currently majority revenue is generated by store sales but online sales from the stores’ websites are increasing. With US dollar getting weaker, international sales from these US based websites are