Women's Clothing Stores in The US Industry Report PDF

WWW.IBISWORLD.
COM Women’s Clothing Stores in the USSeptember 2018 1
Off the rack: Rising external competition will

cause industry revenue to decline
This report was provided to
Concordia University (2132861822)
by IBISWorld on 27 April 2019 in accordance with their licence agreement with IBISWorld
IBISWorld Industry Report 44812

Women’s Clothing
Stores in the US
September 2018 Claire O’Connor
2 About this Industry 16 International Trade 29 Revenue Volatility

2 Industry Definition 17 Business Locations 29 Regulation and Policy
2 Main Activities 30 Industry Assistance
2 Similar Industries 19 Competitive Landscape
3 Additional Resources 19 Market Share Concentration 31 Key Statistics
19 Key Success Factors 31 Industry Data
4 Industry at a Glance 19 Cost Structure Benchmarks 31 Annual Change
21 Basis of Competition 31 Key Ratios
5 Industry Performance 22 Barriers to Entry 32 Industry Financial Ratios
5 Executive Summary 22 Industry Globalization
5 Key External Drivers 33 Jargon & Glossary
7 Current Performance 24 Major Companies
9 Industry Outlook 24 Ascena Retail Group Inc.
11 Industry Life Cycle 25 New York & Company Inc.
25 Chico’s FAS Inc.
13 Products and Markets 26 Sycamore Partners Management LLC
13 Supply Chain
13 Products and Services 27 Operating Conditions
14 Demand Determinants 27 Capital Intensity
15 Major Markets 28 Technology and Systems
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM Women’s Clothing Stores in the USSeptember 2018 2
About this Industry
Industry Definition This industry is composed of undertake sales and administrative

establishments that specialize in activities, such as customer service,
women’s wear, including misses’, advertising and cash handling. Some
juniors’, plus-size and maternity stores also offer basic alteration services
clothing. Operators in this industry on-site.
Main Activities The primary activities of this industry are

Selling women’s pants and jeans
Selling skirts and dresses
Selling women’s outerwear and suits
Selling maternity wear
Selling women’s shirts, blouses and other tops
The major products and services in this industry are

Bottoms
Dresses
Outerwear
Tops
Other apparel and accessories
Similar Industries 31524 Women’s, Girls’ and Infants’ Apparel Manufacturing in the US
Manufacturing women’s and girls’ apparel focuses on operating cut-and-sew production facilities in the
United States.
44814 Family Clothing Stores in the US

Family clothing stores sell new lines of clothing for men, women and children without specializing for an
individual gender or age group.
44819 Lingerie, Swimwear & Bridal Stores in the US

These stores sell clothing like bridal gowns, fur apparel, lingerie and swimwear.
45211 Department Stores in the US

Department stores retail a broad range of merchandise, including health and beauty aids, clothing, footwear
and accessories.
45331 Used Goods Stores in the US

Businesses in this industry collect or purchase a variety of products (e.g. used books, clothes and furniture)
from communities and sell these items directly to consumers.
45411a E-Commerce & Online Auctions in the US

Online stores retail a broad range of products exclusively through the internet, including DVDs, jewelry,
clothing and footwear.
45411b Mail Order in the US

These operators email or send postcards alerting customers that their catalog is available. Customers then
place an order through the catalog, telephone or the internet.
Provided to: Concordia University (2132861822) | 27 April 2019

About this Industry
Similar Industries 44833 Handbag, Luggage & Accessory Stores in the US

These operators retail clothing accessories, such as hats and caps, costume jewelry and gloves.
continued
Additional Resources For additional information on this industry

www.aafaglobal.org
American Apparel and Footwear Association
www.nrf.com
National Retail Federation
www.bls.gov
US Bureau of Labor Statistics
IBISWorld writes over 1000 US

industry reports, which are updated
up to four times a year. To see all
reports, go towww.ibisworld.com

WWW.IBISWORLD.COM Women’s Clothing Stores in the US September 2018 4
Industry at a Glance
Women’s Clothing Stores in 2018
Key Statistics Revenue Annual Growth 13–18 Annual Growth 18–23

Snapshot
$42.5bn -1.6% -0.5%
Profit Wages Businesses
$509.5m $5.7bn 34,669

Revenue vs. employment growth Per capita disposable income
Market Share
Ascena Retail 18 4
Group Inc.
12
10.6% 2
6
% change
% change
0
0
-2
-6
-12 -4
Year 10 12 14 16 18 20 22 24 Year 12 14 16 18 20 22 24
Revenue Employment
SOURCE: WWW.IBISWORLD.COM
p. 24
Products and services segmentation (2018)
8.9%
Outerwear
Key External Drivers
Per capita disposable
income
15.2%
31.0% Tops
Households earning
Dresses
more than $100,000
External competition for
the Women’s Clothing
Stores industry
Number of adults
aged 20 to 64
20.6%
Bottoms
p. 5 24.3%
Industry Structure Life Cycle Stage Mature Regulation Level Medium

Revenue Volatility Low Technology Change Medium
Capital Intensity Low Barriers to Entry Low
Industry Assistance None Industry Globalization Low
Concentration Level Low Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 31

Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive Summary The market for the Women’s Clothing many of the largest industry players are
Stores industry is changing. Due to high-end or specialty stores that intend
declining mall traffic and competition to sell to affluent women or niche markets.
from thriving superstore retailers, Many small specialty stores that carry
industry revenue is expected to fall at an niche products such as eco-friendly
annualized rate of 1.6% to $42.5 billion clothing or athleisure wear have flourished
over the five years to 2018, including a while staple mall stores have cut down
decline of 1.0% in 2018. Despite the locations to remain profitable. Growth in
industry’s overall decline, rising the number of households earning more
disposable income and consumer than $100,000 is expected to have helped
sentiment are expected to boost some several main industry players outperform
specialty and high-end retailers. While low-end retailers that have more
price-conscious consumers among customers but less-expensive transactions.
Over the five years to 2023, industry
revenue is expected to decline at an
Due to declining mall traffic and external annualized rate of 0.5% to total $41.4 billion.
Industry competition is expected to rise, as
competition, industry revenue is expected to fall more operators enter the industry and
internet sales continue to gain an edge in
lower- to middle-income households are women’s clothing. Many companies that
important to industry sales, the were traditionally store-only businesses
willingness of higher-income consumers have responded to external competition by
to spend on luxury clothing and opening online stores that complement their
accessories has been the main driver brick-and-mortar establishments and
behind growth over the past five years. attracting more customers through social
By definition, this industry only media. The rise of mobile technology is
accounts for clothing stores that expected to sustain this trend in the future.
specialize in women’s clothing, which As consumers experience better financial
excludes many popular family and unisex conditions that favor nonessential
retailers that also carry women’s clothing, purchases, revenue growth for a few existing
but usually at lower prices. Therefore, industry players is expected to continue.
Key External Drivers Per capita disposable income affluent women and have clothing lines
Growth in per capita disposable income with high prices. The number of
affects demand for women’s clothing. households earning more than $100,000
When household disposable income is is expected to rise in 2018.
high, consumers have more power to
purchase discretionary items, such as External competition for the
clothes. Per capita disposable income is Women’s Clothing Stores industry
expected to increase in 2018, presenting Discount supercenters and online stores
a potential opportunity for the industry. provide clothing at a large discount to
consumers. Rising income inequality may
Households earning more than $100,000 cause consumers to seek out cost-saving
Consumers in a higher-income bracket techniques on items they do not mind
are more likely to shop at specialized being made generically or by a nonluxury
women’s clothing stores. Many industry brand. External competition for the
participants design their products for Women’s Clothing Stores industry is

Key External Drivers expected to rise in 2018, posing a demand for women’s clothing. In
continued potential threat to the industry. particular, adults between 20 and 39
years old are a key demographic for
Number of adults aged 20 to 64 women’s clothing. The number of
The number of adults in the adults aged 20 to 64 is expected to
population, especially females, affects slightly increase in 2018.
Per capita disposable income Households earning more than $100,000
4 32
30
2
28
% change
%
26
-2
24
-4 22
Year 12 14 16 18 20 22 24 Year 9 11 13 15 17 19 21 23

Current Over the past five years, the Women’s

Clothing Stores industry has struggled Industry revenue
Performance amid declining mall foot traffic and
6
heightened external competition.
Despite a boost in per capita disposable 4
income, more consumers have shifted to
fast-fashion clothing stores and online 2
% change
outlets, which have eaten away at
demand from industry establishments. 0
Even so, some premium brand and

-2
specialty stores have benefited over the
five years to 2018 as the upscale market -4
became more pronounced. Despite Year 10 12 14 16 18 20 22 24
favorable economic conditions, intense
price competition and thriving external SOURCE: WWW.IBISWORLD.COM
competition have resulted in mixed

industry performance. Overall, industry annualized rate of 1.6% to $42.5 billion
revenue is expected to fall at an over the five years to 2018.
External competition As with most retailing industries, external inexpensive clothing items that are in line
competition has been an increasing threat with the latest fashion trends. Over the past
over the past five years. Many retailers have five years, fast-fashion stores have attracted
struggled to compete with discount a large number of women between the ages
department stores and supercenters, along of 18 and 35, reducing revenue from
with e-commerce channels. For the industry operators that target this age group.
Women’s Clothing Stores industry, however, Online retailers have also put increasing
external competition comes in even more competitive pressure on industry operators.
forms, as numerous other industries retail Shopping online lets consumers choose
women’s apparel items. These competitors from a larger variety of products and
include the Family Clothing Stores industry compare prices with ease. Over the five
(IBISWorld report 44814); the Sporting years to 2018, as internet traffic volume
Goods Stores industry (45111); the Lingerie, increased at an annualized rate of 23.2%,
Swimwear and Bridal Stores industry shopping online has become increasingly
(44819); and the Used Goods Stores popular. Many online women’s clothing
industry (45331). Family clothing stores are stores have entered the retail market, many
a particular threat to women’s clothing of which offer extended sizes and loyalty
retailers. These can range from upscale or programs. In response to these online
specialty stores to more generic or discount retailers, many industry operators have
stores. Family clothing stores sell a variety of invested heavily into their own e-commerce
men’s, children’s and women’s apparel. channel. In 2017 (latest data available),
These stores retail comparable products to Chico’s FAS, one of the industry’s largest
women’s clothing stores while benefiting companies, generated about $349.8 million
from multiple target audiences. In recent from online sales, up from $300.2 million in
years, fast-fashion family stores, such as 2013. Although online sales are not included
Zara and H&M, have expanded rapidly, in the industry, many industry operators
further adding to the industry’s external have increasingly relied on e-commerce to
competitive environment. These stores offer remain competitive.

Mixed performance Despite overall revenue decline over

the past five years, the industry has Manylower-priced brands
experienced mixed performance. Early struggled to compete,
in the period, the industry benefited
from a growing economy, as hampering profit margins
consumers purchased clothing and
other discretionary items. However, as struggled to compete, hampering
the economy stabilized and the industry revenue and profit margins.
competitive environment intensified, Many of these discount brands,
industry performance became much including Charlotte Russe and Wet
more volatile. Since 2013, revenue has Seal, have been forced to reduce store
steadily declined due to discount counts or exit the industry altogether.
retailers and online operators Conversely, specialty stores and
outperforming industry stores, premium brands have bolstered
especially during the holiday season. industry revenue, despite a poor
In 2018, industry revenue is expected performance from lower-scale retailers.
to fall 1.0%. Upscale operators, such as Chico’s and
Over the past five years, as price Jones New York, and specialty retailers
competition intensified and like Lucy and Athleta, have grown
e-commerce became more widely sizably due to their ability to reach their
accepted, many lower-priced brands target demographic.
Industry structure Over the past five years, the number of annualized rate of 1.4% to 358,033
industry enterprises has increased an workers over the five years to 2018.
annualized 1.0% to 34,669 operators. The geographic spread of industry
The number of establishments, stores is concentrated in
however, has declined at an annualized metropolitan areas, particularly within
rate of 0.4%. This slight decline is New York and California. Fashion hubs
largely due to larger stores shedding like New York City and Los Angeles
locations amid plummeting mall foot provide specialized clothing stores
traffic, while smaller boutique shops with the opportunity to network with
continue to set up single locations and designers, merchandisers and fellow
mitigate further declines. As smaller retailers to gain exposure in the
players dominate the industry, industry. This networking can lead to
employment growth has been even changes and improvements in a store’s
more subdued. Although the boost in supply chain and enable the store to
small single-chain stores has created effectively follow trends within the
some employment opportunities, these industry. Consumers with higher
stores require fewer employees to incomes are also concentrated around
perform day-to-day operations. As a these areas, supplying high-end
result, the number of industry operators with their preferred
employees has declined at an customer base.

Industry Over the five years to 2023, the Women’s

Clothing Stores industry is expected to
expected to continue using competitive
pricing and sales to lure customers as
Outlook benefit from the rising number of high- competition heats up. Competition from
income households that demand premium- online retailers is expected to be
clothing items. The fashion-forward nature particularly intense over the next five years,
of stores that specialize in only women’s largely hampering industry revenue
clothing convinces customers that the value growth. IBISWorld projects industry
of specialized products justifies the cost. revenue to decline slightly at an annualized
Still, bargain shopping is popular in any rate of 0.5% to $41.4 billion over the five
clothing industry and many stores are years to 2023.
Specialty growth Over the next five years, as price

competition persists, industry revenue Stores
with a niche or
growth is expected to be generated by specialty offering are
premium brands and specialty stores.
With rising per capita disposable income, expected to grow rapidly
more women will be willing to spend on
discretionary high-end apparel items. key markets, focus promotional activity
Stores with a niche or specialty offering and enhance customer loyalty through
are expected to grow particularly rapidly. community engagement. Although many
These include plus-sized stores, premium online specialty retailers have flooded the
denim stores, women’s athletic apparel market, the local appeal of these stores is
stores and eco-clothing stores. Specialty expected to help them stay competitive.
women’s clothing stores are usually small Furthermore, retailers will focus on
in size and serve a fairly homogenous creating more of an in-store experience
target market. Having a specific target to try and attract customers in store,
customer base enables these store such as in-store only promotions and
operators to locate themselves close to pop-up shops.
Online disruptors Over the next five years, online retailers are brand items, appealing to consumers who
expected to pose an increasing threat to are both brand conscious and value driven.
industry operators. During the previous Even as disposable income increases, the
five-year period, rising e-commerce sales wide appeal of off-price designer
were particularly harmful to lower-priced e-commerce sites will absorb a
stores with general product lines. However, significant portion of demand for
over the next five years, premium-priced industry goods and make premium
brands are also expected to experience the operators more price competitive.
competitive pressure from online stores, as In response to these off-price sites, many
more specialty e-tailers enter the market. industry operators are expected to expand
Although many premium brands will their own “factory outlet” retail channels.
expand their online offering, off-price online This store format focuses on the sale of
retailers are expected to dominate the excess or out-of-season inventory at a
virtual market. Companies such as sizable discount. These discount outlets can
RueLaLa, Gilt Groupe and 6pm offer heavy operate both through traditional brick-and-
discounts on highly sought-after name mortar stores and through e-commerce

Online disruptors sites. Industry companies including the next five years. The shift toward off-price
continued Coldwater Creek, Bebe and BCBG have retailing will keep profit margins stagnant
already experimented with this strategy, and over the coming years, even as premium
many more are expected to follow suit over brand sales rise.
Industry landscape Over the five years to 2023,

establishment growth is expected to be Asoperators attempt
minimal, increasing an annualized 0.2%
to 55,573 locations. Even as premium
to save profit margins,
brand sales increase, the highly employment and wages are
saturated nature of the industry will expected to fall
deter many new entrants from setting up
shop. Additionally, consolidation of
national level chains is expected to operators cut costs. Over the five years
continue, as more independent brands to 2023, the number of industry
get purchased by larger chains or private employees is expected to decrease at an
equity firms such as Brentwood annualized rate of just 0.2% to 354,055
Associates and Sycamore Partners. people. Total industry wages are
Additionally, as operators attempt to projected to decline at an annualized
save profit margins, employment and rate of 0.3% to $5.6 billion over the
wages are expected to fall slightly as same period.

Life Cycle Stage The industry’s contribution to the
economy is forecast to be slower than GDP
growth over the 10 years to 2023
Growth in the number of new operators will
slow following store closures and mergers
Technological change in the industry
is expected to be limited

Industry Life Cycle Industry value added (IVA), or the steady pace and is expected to
industry’s contribution to the overall continue in this fashion over the next
economy, is expected to decline an five years. Over the 10 years to 2023,
Thisindustry annualized 3.3% over the 10 years to 2022, the number of companies operating
is m
ature while GDP is estimated grow an annualized brick-and-mortar women’s clothing
2.2% over the same period. IVA growth stores is forecast to grow at an
below GDP usually indicates a declining annualized rate of 0.7% to 35,295. This
industry, however, the Women’s Clothing steady growth is indicative of the
Stores industry exhibits characteristics stable demand for women’s apparel.
typical of a mature industry. Women’s Technology use has slowed within
clothing stores have a wholehearted stores over the past five years, limited
market acceptance, as proven by their to point-of-sale systems and online
recovery from the short lapse in sales, but marketing. Unlike other retailers such
many of the major players are merging in as grocery stores and supercenters,
the wake of weak mall sales. External clothing stores typically do not have
competition has also plagued industry self-checkout systems that reduce the
operators, and continues to hamper sales. number of necessary employees in a
Moreover, the number of industry store, for customer service and
enterprises is growing at a slow yet security reasons.

Products & Markets

Supply Chain | Products and Services | Demand Determinants
Major Markets | International Trade | Business Locations
Supply Chain KEY BUYING INDUSTRIES

99 Consumers in the US
Consumers, namely females, are the primary purchasers of clothing from women’s stores.
KEY SELLING INDUSTRIES

31524 Women’s, Girls’ and Infants’ Apparel Manufacturing in the US
Women’s clothing stores are supplied with women’s and girls’ clothing manufactured by
companies in this industry.
42433 Women’s & Children’s Apparel Wholesaling in the US
Women’s clothing retailers purchase different types of apparel from wholesalers in this
industry to sell in their stores.
Products and Services Products and services segmentation (2018)
8.9%
Outerwear
15.2%
Dresses
31.0% Tops
20.6%
Bottoms
24.3%
Total $42.5bn SOURCE: WWW.IBISWORLD.COM
The product segments for the Women’s they tend to be made of softer fabric (e.g.
Clothing Stores industry are relatively denim tops are not commonplace).
stable, although fluctuations exist due to Moreover, tops are generally less
climate and fashion changes. Retailers expensive than bottoms, which lets
are increasingly enhancing their product women purchase more of them. When
selections to include wider ranges of discretionary spending on apparel
apparel to capture a larger market set. declines, this segment’s share of revenue
increases slightly due to its relative
Tops affordability compared with other,
Items that fall into this category include higher-priced clothing items. Over the
blouses, T-shirts, sweaters and cardigans. past five years, revenue from this
This segment accounts for an estimated segment has remained steady.
31.0% of industry revenue in 2018. Most
women own more tops than dresses or Bottoms
pants; generally, bottoms are more Jeans, pants, skirts and shorts constitute
versatile and can be worn with several the bottoms product category. Growth in
top combinations. Conversely, tops one subsegment occurs at the expense of
experience wear more quickly because another. For example, growth in demand

Products & Markets
Products and Services for jeans offsets demand for skirts. Over cyclical, rising during the winter months
continued the past five years, the pants segment has and declining during the summer
grown because more women are opting months. It is also regional, with demand
for jeans for office and casual wear. in the northern parts of the country
Additionally, the continuous rise of being stronger for a longer duration of
premium denim (i.e. branded denim that the year due to colder climates. Over the
offers flattering and presumably high- past five years, this segment’s share of
quality characteristics) has caused this revenue has declined slightly as growth
segment to expand more rapidly. in demand for other products has
Premium denim tends to carry a higher outpaced demand for outerwear.
price to reflect its premium features, Moreover, the move toward casual work
which also pushes up the segment’s environments continues to limit demand
revenue. In 2018, IBISWorld estimates for suits and sportscoats. IBISWorld
that this product segment accounts for estimates that this segment accounts for
20.6% of industry revenue. 8.9% of industry revenue in 2018.
Dresses All other items

Dresses account for an estimated 15.2% Undergarments, including lingerie,
of revenue in 2018. Demand for this underwear, bras and sleepwear, and
segment is seasonal, increasing during active apparel account for a combined
warmer months and declining during 24.3% of industry revenue in 2018.
winter months. Styles for dresses also The growth of high-end active apparel
change with fashion trends, which creates brands has pushed this segment’s
an incentive for consumers to buy new share of revenue up slightly over the
ones each year. Still, demand for dresses past five years. Other products sold by
has remained in line with overall industry this industry segment include
growth, resulting in this segment’s share accessories such as scarves and hats,
of revenue remaining relatively stable wallets and handbags and footwear.
over the five years to 2018. Revenue from miscellaneous goods
have increased over the past five years,
Outerwear more operators have attempted to
This product segment consists of jackets, diversify their product offering to
coats and suits. Demand for outerwear is boost revenue.
Demand Demand for women’s clothing is driven by indicates consumers’ ability to spend
Determinants favorable consumer conditions for the more on expensive items, which boosts
purchase of nonessential items that are specialized clothing retail sales. Changes
priced at a premium. Women with higher in employment rates and the costs of
levels of income are ideal customers for living can affect consumers’ choices in
industry companies carrying luxury brands. making nonessential purchases.
Consumer confidence measures
Consumer traits consumers’ perceptions of economic
Disposable income and consumer prosperity. When confidence is high,
confidence determine the level of demand demand for women’s clothing increases,
from consumers for stores that sell and when confidence is low, clothing
high-quality women’s fashion. A rise in retail sales trend downward. During
household incomes above $100,000 times of low consumer confidence,

Products & Markets
Demand discount clothing retailers will outpace patterns are guided by their perception
Determinants many industry businesses that cater to of the value of certain brands. Demand
women’s demand for fashion for highly ranked brands, such as Ann
continued
over bargains. Taylor, is dependent upon consumer
perception of the quality of the brand’s
Fashion clothing. Women’s clothing sales will
Other industry-specific factors can also vary according to seasonal and
determine demand for women’s clothing weather conditions. For example, an
sales, such as brand recognition, changes unusually cold winter season will
in fashion trends and seasonal weather increase sales of warmer clothing, such
conditions. Many shoppers’ purchasing as outerwear.
Major Markets Major market segmentation (2018)

10.0%
Lowest income
quintile
13.5%
Second income quintile 37.2%
Highest income quintile
17.1%
Third income quintile
22.2%
Total $42.5bn Fourth income quintile
Although adult women are not always the retailers on occasion, but are likely to
purchasers of industry items, they are the look for better prices on apparel at
intended market and are typically the alternative retailers for the majority of
recipient of women’s clothing. The clothing purchases. Over the next five
following are household income brackets years, this segment’s share of revenue is
and their proportion of women’s clothing expected to decrease slightly, as more
expenditures (Bureau of Labor Statistics, consumers shopped at discount
2016). These reflect all retailers, including department stores.
businesses outside the industry.
Third and fourth income quintile
Lowest and second income quintile The third and fourth income quintiles are
The lowest and second income quintiles anticipated to comprise 17.1% and 22.2%
are expected to account for 10.0% and shares of industry revenue in 2018,
13.5% of industry revenue, respectively. respectively. Such consumers benefit
Consumers in this category are price from higher disposable income, leading
conscious and often purchase industry to stronger demand. Revenue from these
goods on an as needed basis. Members of segments is anticipated to expand over
this segment will shop at industry the five-year period as unemployment

Products & Markets
Major Markets falls and consumers within these Highest income quintile
continued quintiles return to work. Despite rising This segment of consumers accounts for
demand from these consumers, this the largest proportion of the market at an
segment’s share of revenue is expected estimated 37.2% in 2018. Many of the
to increase slightly as more shoppers consumers within this bracket are 35 and
turn to premium retailers as per capita up, which is the intended age group for
disposable income increases. customers of the industry’s major players.
Additionally, the emergence of fast These customers have grown up valuing
fashion stores has enabled these brand recognition and spend a high
consumers to make more frequent and proportion of their income on discretionary
unplanned purchases. However, over clothing and accessories. This segment is
the next five years revenue from this expected to increase within the greater
segment will likely decline as many economy, and will continue to provide
shopped for comparable goods online. revenue growth for this industry.
International Trade Women’s clothing stores do not directly manufacturing level. In this case, the
participate in trade, but the industry is Women’s and Girls’ Apparel
affected by trade and sourcing in Manufacturing industry (IBISWorld
upstream industries. By convention, report 31523) accounts for all trade
trade figures are accounted for at the affecting women’s clothing retailers.

Products & Markets
Business Locations 2018
West
AK
0.1 New
England
ME
Great Mid- 0.4
Lakes Atlantic 1 2
NY 3
WA MT ND 8.8
5 4
1.6 0.3 MN
Rocky
0.3 1.8
WI
OR Mountains SD
0.3
Plains 1.4 MI
2.5
PA
3.3
6
7
1.1 ID IA OH 9 8
0.4 WY 2.6
0.2
NE
1.0
IL IN WV VA
3.8 1.6 2.4
West NV
0.6 0.4
KY
UT MO
1.2 NC
0.9
0.8 CO KS 1.9 3.1
1.7 0.8 TN
SC
Southeast
2.2
CA 1.6
11.6
OK AR GA
1.2 1.1 AL 3.4
AZ MS 1.8
1.7 NM
0.5 Southwest 1.3
TX LA
1.9 FL
8.4 7.1
West
HI
0.7 Additional States (as marked on map) Establishments (%)
1 VT 2 NH 3 MA 4 RI Less than 3%
0.2 0.4 2.2 0.3 3% to less than 10%
10% to less than 20%
5 CT 6 NJ 7 DE 8 MD 9 DC
20% or more
1.3 3.5 0.4 1.7 0.2

Products & Markets
Business Locations Similar to many other retail industries,

Distribution of establishments vs. population
the locations of women’s clothing stores
in the United States follow population
30
concentration trends. This pattern holds
true in terms of region, but state by state
this pattern has some exceptions. For 20
example, New York State accounts for
8.8% of all industry establishments, but
%
population accounts for a lower 6.1% of 10
the entire nation. Major metropolitan
areas such as New York City, Miami and
Los Angeles are highly commercialized 0
and have wealthy populations to drive
West
Great Lakes
Mid-Atlantic
New England
Plains
Rocky Mountains
Southeast
Southwest
any clothing industry’s demand for
luxury brands. Consequently, the regions
with the highest number of
establishments are the Southeast, the Establishments
Mid-Atlantic and the West. Population
The Southeast region is expected to SOURCE: WWW.IBISWORLD.COM
account for the largest share of industry

establishments in 2018 at 27.4%, while looking to capture the profitability that
also having the largest portion of the US comes from selling products at a
population, 25.7%. This synchronicity premium to wealthier consumers.
also indicates that consumers of all The Western region accounts for an
income levels feel comfortable enough to expected 16.0% in 2018, roughly in line
spend on women’s clothing from industry with its US population proportion of
stores rather than department stores. 17.3%. California is the state with the
The Mid-Atlantic region accounts for highest amount of industry
the second-largest share of industry establishments, 11.6%, clearly carrying
establishments at an estimated 17.9%. the region’s share of the industry.
This is proportionally higher than the California has a number of metropolitan
region’s share of the US population, areas, some of which are known to be
which is 15.2%. IBISWorld attributes this fashion hubs as well as wealthy areas. Los
disparity to the area’s above-average Angeles, San Francisco, San Diego and
annual incomes. While the national others. Smaller women’s clothing
average income is about $59,039, boutiques often showcase and sell the
according to the US Census, the average work of both well-known and new
American living in the Mid-Atlantic fashion designers, many of whom are
region earns over $72,000. This income located in cities of California that provide
difference appeals to industry players artistic and educational environments.

Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks
Basis of Competition | Barriers to Entry | Industry Globalization
Market Share The Women’s Clothing Stores industry is are losing market share to e-commerce
Concentration highly fragmented, with the majority of platforms. However, as retail sales struggled
operators operating on a local or regional and profit margins remained depressed,
scale. In 2018, the top four industry many small brands were picked up by
Level
companies are expected to account for 18.1% private equity firms such as Sycamore
Concentration in of industry revenue. In fact, Ascena Retail Partners and Brentwood Associates. Over
this industry is L ow Group is the only operator expected to the next five years, while merger and
control more than 5.0% of the market. acquisition activity is expected to continue,
Despite increased merger and acquisition market share is anticipated to decline due to
activity over the period, market share the rising popularity and dominance of
concentration has decreased as operators online retailers.
Key Success Factors Attractive product presentation Proximity to key markets

A logical store layout improves the The store needs to be located where there is
shopping experience for customers. a high volume of passing traffic. Being in
IBISWorld identifies Having an attractive product display proximity to target customers will benefit a
250 Key Success encourages product purchases and can company because purchasing women’s
Factors for a strengthen the company’s image. clothing is a very visual activity.
business. The most
Ability to control stock on hand Production of goods currently favored
important for this
Effective and efficient control of stock by up-to-date fashion trends
industry are: increases stock turnover and prevents Women’s and girls’ clothing pieces stocked
excess inventory build-up. by a company have to be consistent with
fashion trends and well suited to the fashion
Experienced work force tastes of its target market.
The quality of staff is becoming
increasingly important because Establishment of brand names
customers demand superior customer Many shoppers are guided by the status of
service and product quality. Companies brands. Women’s clothing stores that
that have staff undergo extensive establish brand recognition will entice
customer service training will have customer attention and
an advantage. encourage shopping.
Cost Structure The following segments are based on earn higher margins than generic stores
Benchmarks industry-wide estimates. Costs and selling less expensive merchandise.
purchases greatly vary among industry Overall, women’s clothing retailers are
operators, depending on the size, range estimated to achieve average profit (e.g.
of products and intended customer base earnings before interest and tax) of 1.2%
of a store. of revenue during 2018. Profit has
decreased from 5.2% in 2013 largely due
Profit to the price-based competition forced
Due to the wide assortment of operators upon retailers by their online
in the industry, profit margins often vary competitors. Profit is expected to
significantly between operators. stagnate over the five years to 2023. As
Successful premium level stores often online shopping continues to become a

Cost Structure larger force within the retail landscape, relatively successful in increasing
Benchmarks operators will compete heavily based on consumer prices while maintaining
price to drive foot traffic into stores. demand, as consumers are feeling more
continued
comfortable spending on expensive goods
Purchases as their income grows.
Purchases are typically the largest cost
for participants in the retail sector. Wages
Within the Women’s Clothing Store Wages are estimated to account for
industry, purchases are estimated to 13.5% of industry revenue. This share
account for 54.0% of industry revenue in has remained stable over the past five
2018. This proportion will vary greatly years, only because wages is declining
among retailers of different sizes. Over at a similar pace as revenue. To salvage
the past five years, the portion of clothes margins, many operators have relied
sourced from low-cost overseas more heavily on part time workers who
producers has increased significantly, are less costly to hire than full time
keeping purchase costs lower than they staff. The fall in wages is also due to
would be if they were domestic. As said, declining employment in the industry.
the prices of cotton and alternative fibers Over the past five years more
have fluctuated drastically over the past operators have implemented
five years due to adverse weather technology such as inventory tracking
conditions damaging the supply chain, systems and POS (point of sale)
affecting purchase costs greatly. During systems which reduce the need for
the five-year period, retailers have been lower-skilled employees.
Sector vs. Industry Costs
Average Costs of
all Industries in Industry Costs
sector (2018) (2018)
100 3.1 1.2 n Profit
8.9 13.5 n Wages
n Purchases
80 n Depreciation
n Marketing
n Rent & Utilities
n Other
Percentage of revenue
60
54.0
67.6
40
0.9 1.9
0.9 12.0
20
1.7
4.4
13.3 16.5
0

Cost Structure Rent, utilities and depreciation industry operators have allocated more
Benchmarks Rent and utilities expenses account for a resources to marketing campaigns to
total of 12.0% of industry revenue in retain customers.
continued
2018. Electricity is a large expenditure
for stores, for both lighting for the store, Other
and for displays. Many women’s clothing Other expenses include general
stores lease their establishment locations administrative costs, repairs and
rather than own, increasing the amount maintenance, warehousing services, and
industry participants spend on rent. technical services. The increase in
Depreciation expenses, conversely, are e-commerce for women’s clothing is an
low for industry operators, accounting for increasing cost for both large and small
a mere 0.9% of revenue. Costs in this retailers that choose to conduct
category include the depreciation of additional business online. The cost of
fixtures, inventory management software maintaining a website can be minimal,
and point of sale systems. but is likely higher for large retailers with
many clothing departments, and a higher
Marketing volume of online customers. Besides
In 2018, marketing expenditures are point-of-sale systems, there is minimal
expected to make up 1.9% of industry in-store technology that needs
revenue. To generate foot traffic, many maintenance and frequent repair. This
operators rely on print, TV and online segment of the industry’s cost structure
advertisements. Over the past five years, accounts for an estimated 16.5%.
Basis of Competition The Women’s Clothing Stores industry is expanded into plus-size fashion to build a
highly competitive. Competition for the customer base in that market segment.
Level & Trend industry exists both internally (among Some retailers in this industry target
women’s clothing stores) and externally more affluent, professional women and
ompetition
C in this (between the Women’s Clothing Stores charge premium prices for their higher-
industry is H
ighand industry and other industries). quality products. Other retailers target
the trend is S teady lower- to middle-income women and
Internal competition offer low prices. Price is only a basis of
Industry participants compete with each competition among retailers that have
other on the basis of brand image, the same target market. Customer service
marketing, fashion design, quality, price, and store location are also important to
customer service and store location. retailers in this industry because
Major players in this industry invest customers return to stores that provide
considerable resources in brand professional and friendly service.
awareness and advertising promotions. Shoppers will also frequent a store that is
Retailing well-recognized brands is conveniently located near them.
important in this industry, where strong
brand names help define consumer External competition
preferences and fashion choices. Industry The main industries competing with
participants need to offer customers a women’s clothing stores are the
selection of merchandise with a style, Department Stores industry (IBISWorld
quality and fit appropriate to their target report 45211), the Warehouse Clubs and
market. For example, over the past few Supercenters industry (IBISWorld report
years, many women’s retailers have 45291), which includes off-price retailers

Basis of Competition like Walmart, and the E-Commerce and price-competitive products to women
continued Online Auctions industry (IBISWorld who may be more conscious of their
report 45411a). The one-stop-shop expenditure on apparel. Online retailers
format of department stores enables provide a platform for price comparison
women to purchase clothes for among many retailers and often give
themselves while also shopping for their promotional offers and free shipping to
entire families. Discount stores offer return customers.
Barriers to Entry The capital costs associated with

establishing a women’s clothing store are Barriers to Entry checklist
Level & Trend relatively low, and the only real barriers Competition High
to entry in this industry relate to brand Concentration Low
arriers to Entry
B awareness and competition. The long- Life Cycle Stage Mature
in this industry are term process of establishing a solid brand Capital Intensity Low
Lowand S teady reputation can be considered a deterrent Technology Change Medium
to entering the industry. Existing players Regulation and Policy Medium
have already established brand names in Industry Assistance None
their respective product fields, so new
entrants will have to invest money and SOURCE: WWW.IBISWORLD.COM
time to sway consumers into making the

shift from strong existing brand names to players. The top four industry players
the garments of relatively new brands. have a collective industry share of an
With a large number of smaller estimated 18.1%, which indicates low
players, competition within the industry concentration.
industry is strong. There is also a high Additionally, finding a retail space in a
level of external competition, prime location with a lot of foot traffic
particularly from the Department can be a barrier to entry because it is
Stores industry. However, there are often costly and not readily available.
opportunities for retailers to compete However, there are no regulatory or
in niche markets, such as plus sizes, licensing requirements to set up a
petites, casual clothing or evening wear. women’s clothing store establishment,
This industry is highly fragmented and which is another factor contributing to
comprises a large number of smaller the industry’s low barriers to entry.
Industry The Women’s Clothing Stores industry most changes are adjusted at the
Globalization has a low level of globalization. Major manufacturing and wholesale levels.
players of the industry have facilities and However, significant shocks to
stores in other countries besides the commodity prices can determine
Level & Trend United States, but most of their stores are women’s clothing stores’ merchandise
lobalization
G in still domestic. Industry stores do not prices. For example, this was the case in
this industry is engage in international trade, although 2010 and 2011, when the world price of
Lowand the trend the majority of women’s apparel is cotton skyrocketed and trickled down to
sourced internationally. Industry retailers in the form of higher purchasing
is I ncreasing
participants are affected by changes in costs. Some retailers were able to pass on
the US dollar’s value only marginally, as the increased prices to consumers,

Industry helping them generate higher revenue,

Globalization while others had to absorb the cost and
incur lower profit margins (or losses).
continued

Major Companies
Ascena Retail Group Inc. | Other Companies
Major Players
(Market Share)
89.4%
Other
Ascena Retail Group Inc. 10.6% SOURCE: WWW.IBISWORLD.COM
Player Performance Headquartered in Mahwah, NJ, Ascena locations across the United States and
Retail Group Inc. stores offer women’s Canada and an e-commerce platform,
clothing, shoes and accessories through encompassing casual and career apparel,
Ascena Retail Group several brands, including Ann Taylor, Loft, dressy clothing and accessories for the 17- to
Inc. Lane Bryant, Maurices, Dressbarn and 34-year-old female demographic. The
Market Share: 10.6% Catherines. The company has about 4,800 Dressbarn segment runs over 700 retail
stores in the United States, Puerto Rico and stores and an e-commerce site, generally
Industry Brand Names
Canada. Ascena currently participates in catering to women between the ages of 30
Lane Bryant
the Women’s Clothing Stores industry and 50 with casual and career-appropriate
Charming Shoppes
through each of its brands except Justice, apparel. The Catherines segment operates
Maurices
which is targeted toward the seven- to over 400 stores and an online retail
Dressbarn
14-year-old female demographic. Ascena’s platform; this segment caters to plus-size
Catherines
retail stores are located in shopping centers females ranging in sizes from 16 to 34 and
Ann Taylor
and outlet malls. 28 to 34, while also offering casual and
Loft
The group’s Lane Bryant segment career apparel and accessories. In August
operates over 700 retail locations, along 2015, the company acquired Ann Inc.,
with an e-commerce site, and sells plus-size adding almost 1,000 Loft and Ann Taylor
fashions. Products in the segment range in store locations to the company’s portfolio.
sizes from 14 to 28 and include items like
lingerie, casual apparel, social occasion Financial performance
apparel and footwear. The Maurices Over the five years to fiscal 2018,
segment operates through over 900 retail IBISWorld projects that Ascena’s US
Ascena Retail Group Inc. (US industry-specific segment) - financial

performance*
Revenue Operating Income
Year** ($ million) (% change) ($ million) (% change)
2012-2013 3,019.1 N/C 75.8 N/C
2013-2014 3,036.8 0.6 99.4 31.2
2014-2015 3,074.7 1.3 144.9 45.7
2015-2016 5,027.4 63.5 121.4 -16.2
2016-2017 4,739.1 -5.7 142.0 17.0
2017-2018 4,483.1 -5.4 84.7 -40.3
*Estimates; **Year-end July

SOURCE: ANNUAL REPORT AND IBISWORLD

Major Companies
Player Performance industry-specific revenue will grow at an company’s adjustment to acquisitions.

continued annualized rate of 8.2% to $4.5 billion. In fiscal 2015, the company acquired
Moderate pricing has given Ascena an Ann Inc., which sizably increased
advantage over other specialty stores, company revenue by 45.6%. Despite
attracting consumers who are looking for significant growth, the company is
fashion on a budget. Operating income expected to continue closing retail
has fluctuated during the five-year period locations to streamline operations and
due to suppressed mall sales and the elevate profit margins.
Other Company Established in 1983, Chico’s FAS Inc. began Chico’s brands include Chico’s and
Performance business on Sanibel Island, FL, selling folk Soma Intimates and White House
art specialty (FAS) items and custom-made Black Market, each geared toward
furniture. The owners soon started selling women aged 30 and older. The
Chico’s FAS Inc. sweaters and other specialty clothing from company completed the sale of Boston
Market Share: 4.3% Mexico and saw enough potential in the Proper and closed all Boston Proper
segment to focus the business on women’s stores as of fiscal 2015. As a result, the
apparel and accessories. The company is company’s industry-relevant revenue
currently headquartered in Fort Myers, FL, is expected to decrease slightly in
and employs 19,000 workers across 1,460 2018. Overall, IBISWorld projects
stores in 46 states, Puerto Rico, the US industry-relevant revenue to total $1.8
Virgin Islands and Canada. Additionally, billion in 2018, declining at an
Chico’s has opened 94 franchise locations annualized rate of 4.5% over the five
in Mexico. years to 2018.
Other Company Founded in 1918, as a subsidiary of L with Kate Hudson, who will create her
Performance Brands Inc., New York & Company Inc. own ready to wear brand. Like many
is a leading retailer of women’s fashion industry operators, New York &
apparel and accessories. With more Company has reduced its store count
New York & than 432 stores in 37 states, the over the past five years, to save profit
Company Inc. company sells stylish and office margins as mall traffic declined. The
Market Share: 1.6% friendly pieces targeted at women company has also invested heavily in
between ages 25 and 45. In February its online channel, which experienced
2018, New York & Company acquired a 14.8% increase in sales over 2017
certain assets of Fashion to Figure, a alone (latest data available). In 2018,
plus-sized fashion retailer based in the IBISWorld estimates that the
United States. Furthermore, in 2018, company’s industry-relevant revenue
the company announced a partnership will reach $665.3 million.

Major Companies
Other Company Sycamore Partners Management LLC is a clothing. In April 2015, the company sold
Performance private equity firm based in New York Jones New York to Authentic Brands
City that specializes in apparel retail group. Over the past five years, Sycamore
investments. The company was founded has both purchased and divested multiple
Sycamore Partners in 2011 and has acquired several brands women’s clothing store brands, making
Management LLC that operate within the Women’s the company’s contribution to the
Market Share: 1.6% Clothing Stores industry, including industry variable. Although the company
Torrid, Talbots and Coldwater Creek. does not release financial statements to
Some of the company’s other retail the public, IBISWorld expects Sycamore’s
brands carry women’s apparel, but do not industry-specific revenue to reach $697.8
have stores that specialize in women’s million in 2018.

Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance
Capital Intensity In determining the level of capital intensity

within women’s clothing stores in the Capital Intensity
Capital units per labor unit
United States, IBISWorld uses wage costs
Level
as a proxy for labor, and depreciation as a 0.5
The levelof capital proxy for capital investment. For every
intensity is L ow dollar absorbed by wages, an estimated 0.4
$0.07 will be allocated toward capital 0.3

investment in 2018. This ratio indicates a
low level of capital intensity. Retail 0.2
industries have typically been labor 0.1

intensive. Women’s clothing stores require
staff to provide high levels of customer 0.0
Economy Retail Trade Women's
service. Staff members are also required for Clothing Stores
merchandising tasks and processing sales. Dotted line shows a high level of capital intensity
Capital costs include cash registers, SOURCE: WWW.IBISWORLD.COM
computer systems, and fixtures and

fittings, typically incurred at the beginning
of starting a business and not often
incurred after.

Technology and Technological advances include the use of identification (RFID), which is presently
Systems electronic barcode scanners, automated implemented to monitor and replenish
warehouse equipment and electronic inventories more efficiently. RFID tags
Level surveillance. Stock control, profitability can either be passive or active, although
and customer experience are all both kinds respond to radio frequencies
The level
of anticipated to feel the effects of the that are sent from a transceiver. Passive
technology change technological change occurring in the tags have no internal power supply,
is M
edium Women’s Clothing Stores industry. which means they emit limited
Electronic barcode scanning systems information and are applied or embedded
enable efficient customer checkouts into a garment. Costs for RFID vary
and returns, store-based inventory depending on the functionality of the
management and rapid order product. Very short-range passive tags
replenishment. On January 1, 2005, cost up to $0.06, while two-way active
the 12-digit barcode retailers RFID tags with a long range can cost up
traditionally used to identify products to $25.00 each.
went to 13-digits due to a shortage of IBISWorld anticipates the use of RFID
12-digit numbers. to increase over the next five years. The
Various industry participants have major benefits for retailers is identifying
adopted e-commerce as an alternative stock levels and monitoring inventory.
sales medium and marketing tool. Stock theft and stock loss can also be
E-commerce offers consumers the ability reduced, which would provide additional
to browse and purchase products from savings to retailers. Labor use will also
the comfort of their homes while giving improve because stock counting at a
women’s clothing stores the opportunity distribution level could be minimized and
to sell outside their prime market areas. automatically calculated as needed.
The penetration of e-commerce Despite the adoption of RFID
technology is expected to increase, as is technology throughout the supply chain,
its usage among consumers. it is not expected to gain significant
With stock loss and theft affecting the traction at a retail level in the near
industry’s profitability, retailers regularly future, given the low concentration of
invest in systems and procedures that industry operators. However, this
aim to limit these losses. Loss prevention technology will significantly change key
technology includes closed-circuit TV industry characteristics beyond the next
cameras (CCTV), source tagging, five years. Some major clothing retailers
signature-capture technology used at the could eventually have automatic
point-of-sale (POS) terminal for credit checkouts, which calculate items in a
card transactions, and fingerprint customer’s basket, confirm the price and
scanning systems that verify customer process the payment through a unique
identities with the purpose of combating POS system. Such technological
check fraud. integration has the potential to
The key technology for women’s significantly alter the industry’s
clothing stores is radio frequency labor costs.

Revenue Volatility The Women’s Clothing stores industry 2018 and as much as 2.2% in 2015.
has exhibited low revenue volatility over Rising external competition from online
the five years to 2018. Generally, as outlets and alternative retailers has
Level
incomes rise, demand for discretionary plagued industry operators, often forcing
The level of apparel does as well. Despite a steady rise them to compete based on price. As
volatility is L ow in consumer spending over the five-year operators continue to use promotional
period, industry revenue has not pricing to generate foot traffic, industry
exhibited the same trend. Industry revenue is adversely affected if sales
revenue has declined as little as 1.0% in volumes remain at a similar level.
Regulation and Policy Regulations relevant to women’s clothing multilocation chain stores. States have
stores vary by state. Congress and enacted their own antitrust laws to
individual states enact trade regulations ensure that the public is provided with
Level & Trend with the aim of maintaining a free and the best prices, quality and competition
he level of
T competitive economy. among businesses, including women’s
Regulation is Congress has passed the Sherman Act, clothing stores.
Mediumand the the Wilson Act, the Clayton Act and the The laws that affect credit programs
Robinson-Patman Act regarding unfair offered by retailers include the Federal
trend is S
teady
competition. Together these make up US Consumer Credit Protection Act (Truth in
federal antitrust law. The Sherman Act Lending), which specifies written
(1890) prohibits the formation of disclosure of information relating to
monopolies that hinder competition. The financing. For example, creditors must
Wilson Act (1895) prohibits conspiracies notify consumers of their annual
that restrain import trade. The Clayton percentage rate. The Federal Fair Credit
Act (1914) bans certain forms of price Reporting Act specifies that consumer
discrimination. Finally, the Robinson- credit information can be used to approve
Patman Act (1936) provides some or deny credit to that individual. The
protection to small independent retailers Federal Equal Credit Opportunity Act
and their suppliers from unfair prohibits discriminating against any
competition from vertically integrated, credit applicants based on gender, age,

Regulation and Policy ethnicity and sexuality. The Fair Debt Bliley Act requires retailers to disclose
continued Collection Practices Act regulates how their privacy policy as it relates to
payments are collected on credit customers’ nonpublic
accounts. Finally, the Gramm-Leach- personal information.
Industry Assistance Trade in apparel is not accounted for at and enhance its members’
the retail level, so there are no direct competitiveness, productivity and
tariffs that apply to women’s clothing profitability in the global market by
Level & Trend stores. However, tariffs applied to minimizing regulatory, legal, commercial,
he level of
T manufacturers and wholesalers political and trade restraints. The
Industry Assistance ultimately affect the prices paid by Electronic Retailing Association (ERA) is
is N
oneand the women’s clothing retailers. the trade association for companies that
This industry does not receive any use electronics to sell goods and services
trend is S
teady
major government subsidies or grants. to the public, as many women’s clothing
However, various retail-encompassing stores do. The purpose of the ERA is to
associations and councils exist to protect foster the growth, development and
women’s clothing businesses. The acceptance of the rapidly growing
National Retail Federation is the world’s electronic retailing industry worldwide.
largest retail trade association and The Retail Optimization Council is
conducts programs and services in another industry organization for
research, education, training, women’s clothing stores designed to
information technology and government help retailers and vendors jointly
affairs to protect and advance the understand and implement
interests of the retail sector, of which optimization solutions mainly through
women’s clothing stores are a part. developing open integration
The American Apparel and Footwear requirements, educational programs
Association (AAFA) is the national trade and research. Its mission is to increase
association representing apparel, growth and profitability for the
footwear and other sewn products retailers through optimizing
companies. AAFA’s mission is to promote demand chain.

Key Statistics
Industry Data Industry Consumer
Revenue Value Added Establish- Wages Domestic spending
($m) ($m) ments Enterprises Employment Exports Imports ($m) Demand ($b)
2009 42,525.0 7,229.1 51,114 28,827 341,443 -- -- 5,910.9 N/A 9,847.0
2010 43,898.1 8,396.6 51,745 28,744 327,258 -- -- 5,674.9 N/A 10,036.3
2011 45,687.6 8,197.1 53,185 29,406 376,174 -- -- 6,004.1 N/A 10,263.5
2012 46,823.0 8,804.2 57,573 31,571 417,624 -- -- 6,650.4 N/A 10,413.2
2013 46,104.7 9,018.1 56,214 32,911 383,880 -- -- 6,205.6 N/A 10,565.4
2014 45,131.2 7,889.7 58,399 35,379 376,900 -- -- 6,039.4 N/A 10,868.4
2015 44,151.2 8,435.2 59,232 36,799 353,918 -- -- 5,918.6 N/A 11,264.3
2016 43,364.5 6,708.0 54,713 34,365 361,181 -- -- 5,797.4 N/A 11,572.1
2017 42,906.2 6,631.9 54,834 34,532 358,860 -- -- 5,749.2 N/A 11,878.8
2018 42,461.5 6,605.1 55,007 34,669 358,033 -- -- 5,720.7 N/A 12,165.8
2019 42,107.0 6,557.6 55,173 34,860 356,124 -- -- 5,682.0 N/A 12,421.3
2020 41,799.7 6,512.6 55,321 34,982 355,602 -- -- 5,662.9 N/A 12,620.1
2021 41,669.2 6,499.1 55,230 34,981 354,159 -- -- 5,639.2 N/A 12,822.0
2022 41,450.9 6,481.9 55,464 35,165 354,139 -- -- 5,630.1 N/A 13,014.3
2023 41,425.9 6,480.4 55,573 35,295 354,055 -- -- 5,628.0 N/A 13,292.9
Sector Rank 20/63 23/63 17/63 23/63 13/63 N/A N/A 20/63 N/A N/A
Economy Rank 228/696 340/696 129/696 158/696 98/696 N/A N/A 259/696 N/A N/A
Annual Change Industry Establish- Domestic Consumer

Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand spending
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2010 3.2 16.2 1.2 -0.3 -4.2 N/A N/A -4.0 N/A 1.9
2011 4.1 -2.4 2.8 2.3 14.9 N/A N/A 5.8 N/A 2.3
2012 2.5 7.4 8.3 7.4 11.0 N/A N/A 10.8 N/A 1.5
2013 -1.5 2.4 -2.4 4.2 -8.1 N/A N/A -6.7 N/A 1.5
2014 -2.1 -12.5 3.9 7.5 -1.8 N/A N/A -2.7 N/A 2.9
2015 -2.2 6.9 1.4 4.0 -6.1 N/A N/A -2.0 N/A 3.6
2016 -1.8 -20.5 -7.6 -6.6 2.1 N/A N/A -2.0 N/A 2.7
2017 -1.1 -1.1 0.2 0.5 -0.6 N/A N/A -0.8 N/A 2.7
2018 -1.0 -0.4 0.3 0.4 -0.2 N/A N/A -0.5 N/A 2.4
2019 -0.8 -0.7 0.3 0.6 -0.5 N/A N/A -0.7 N/A 2.1
2020 -0.7 -0.7 0.3 0.4 -0.1 N/A N/A -0.3 N/A 1.6
2021 -0.3 -0.2 -0.2 0.0 -0.4 N/A N/A -0.4 N/A 1.6
2022 -0.5 -0.3 0.4 0.5 0.0 N/A N/A -0.2 N/A 1.5
2023 -0.1 0.0 0.2 0.4 0.0 N/A N/A 0.0 N/A 2.1
Sector Rank 54/63 52/63 33/63 31/63 49/63 N/A N/A 52/63 N/A N/A
Economy Rank 614/696 564/696 450/696 429/696 560/696 N/A N/A 580/696 N/A N/A
Key Ratios Imports/ Exports/ Revenue per Share of the

IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($’000) (%) per Est. ($) (%)
2009 17.00 N/A N/A 124.54 13.90 6.68 17,311.53 0.05
2010 19.13 N/A N/A 134.14 12.93 6.32 17,340.75 0.06
2011 17.94 N/A N/A 121.45 13.14 7.07 15,960.96 0.05
2012 18.80 N/A N/A 112.12 14.20 7.25 15,924.37 0.06
2013 19.56 N/A N/A 120.10 13.46 6.83 16,165.47 0.06
2014 17.48 N/A N/A 119.74 13.38 6.45 16,023.88 0.05
2015 19.11 N/A N/A 124.75 13.41 5.98 16,723.08 0.05
2016 15.47 N/A N/A 120.06 13.37 6.60 16,051.23 0.04
2017 15.46 N/A N/A 119.56 13.40 6.54 16,020.73 0.04
2018 15.56 N/A N/A 118.60 13.47 6.51 15,978.14 0.04
2019 15.57 N/A N/A 118.24 13.49 6.45 15,955.12 0.04
2020 15.58 N/A N/A 117.55 13.55 6.43 15,924.83 0.04
2021 15.60 N/A N/A 117.66 13.53 6.41 15,922.79 0.03
2022 15.64 N/A N/A 117.05 13.58 6.39 15,897.99 0.03
2023 15.64 N/A N/A 117.00 13.59 6.37 15,895.84 0.03
Sector Rank 49/63 N/A N/A 53/63 24/63 21/63 54/63 23/63
Economy Rank 598/696 N/A N/A 559/696 432/696 439/696 653/696 340/696
Figures are in inflation-adjusted 2018 dollars. Rank refers to 2018 data. SOURCE: WWW.IBISWORLD.COM

Industry Financial Ratios

Apr 2016 - Mar 2017 by company revenue
Apr 2013 - Apr 2014 - Apr 2015 - Apr 2016 - Small Medium Large
Mar 2014 Mar 2015 Mar 2016 Mar 2017 (<$10m) ($10-50m) (>$50m)
Liquidity Ratios
Current Ratio 2.1 1.9 2.2 1.7 2.0 1.7 1.5
Quick Ratio 0.7 0.4 0.7 0.3 0.4 0.4 0.3
Sales / Receivables (Trade Receivables
Turnover) 385.5 n/c n/c n/c n/c 584.8 86.9
Days’ Receivables 0.9 0.4 n/a 0.4 0.4 0.6 4.2
Cost of Sales / Inventory (Inventory Turnover) 3.8 3.4 5.4 4.4 4.0 4.9 4.4
Days’ Inventory 96.1 107.4 67.6 83.0 91.3 74.5 83.0
Cost of Sales / Payables (Payables Turnover) 12.2 9.3 16.1 14.8 51.6 8.5 11.7
Days’ Payables 29.9 39.2 22.7 24.7 7.1 42.9 31.2
Sales / Working Capital 8.7 10.1 9.9 12.3 9.9 11.9 14.6
Coverage Ratios
Earnings Before Interest & Taxes (EBIT) /
Interest 5.9 3.9 6.8 1.5 2.8 3.0 -0.4
Net Profit + Dep., Depletion, Amort. / Current
Maturities LT Debt 5.6 n/a 6.0 4.5 n/a n/a n/a
Leverage Ratios
Fixed Assets / Net Worth 0.4 0.5 0.3 0.6 0.3 0.5 1.1
Debt / Net Worth 1.3 2.1 1.3 1.9 1.9 1.2 2.1
Tangible Net Worth 37.1 25.6 36.5 18.4 8.2 32.5 24.4
Operating Ratios
Profit before Taxes / Net Worth, % 18.3 21.3 27.0 16.6 43.2 7.7 -4.8
Profit before Taxes / Total Assets, % 7.1 6.1 7.8 3.3 7.2 2.9 -1.5
Sales / Net Fixed Assets 22.5 18.1 36.0 18.9 35.3 19.7 6.8
Sales / Total Assets (Asset Turnover) 2.9 2.8 3.4 3.0 3.3 3.1 2.5
Cash Flow & Debt Service Ratios (% of sales)

Cash from Trading 45.3 44.5 45.1 45.4 45.3 45.4 48.0
Cash after Operations 3.0 3.4 4.3 2.6 1.4 3.0 3.1
Net Cash after Operations 3.1 3.5 3.7 2.3 0.9 2.6 2.7
Cash after Debt Amortization 0.9 1.1 1.3 n/a -2.4 1.4 0.8
Debt Service P&I Coverage 4.1 3.3 5.7 1.8 n/a 2.8 n/a
Interest Coverage (Operating Cash) 8.9 5.3 13.1 3.7 n/a 7.4 n/a
Assets, %
Cash & Equivalents 19.7 14.5 19.9 15.4 19.1 13.3 9.8
Trade Receivables (net) 7.4 4.4 7.0 4.7 2.9 8.7 4.2
Inventory 39.6 44.8 40.0 44.1 49.4 40.8 36.8
All Other Current Assets 1.8 2.8 2.9 2.5 1.4 3.6 3.6
Total Current Assets 68.5 66.4 69.7 66.8 72.9 66.3 54.4
Fixed Assets (net) 17.7 21.3 18.8 20.3 16.1 18.5 31.0
Intangibles (net) 4.6 5.4 3.2 6.4 3.8 8.4 9.5
All Other Non-Current Assets 9.2 6.9 8.2 6.6 7.3 6.8 5.1
Total Assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total Assets ($m) 3,190.3 2,670.8 3,299.5 2,802.2 32.9 303.3 2,465.9
Liabilities, %
Notes Payable-Short Term 8.0 9.7 8.2 17.9 28.1 8.4 6.8
Current Maturities L/T/D 1.1 1.3 2.0 1.6 1.1 2.8 1.3
Trade Payables 14.9 20.1 15.4 16.1 13.0 21.6 16.4
Income Taxes Payable 0.1 0.1 0.1 0.2 0.3 0.2 n/a
All Other Current Liabilities 10.6 12.6 11.6 17.3 22.4 10.6 14.0
Total Current Liabilities 34.7 43.8 37.3 53.0 65.0 43.6 38.4
Long Term Debt 10.8 15.1 11.6 13.4 16.2 7.3 14.0
Deferred Taxes 0.2 0.1 0.1 n/a n/a 0.2 n/a
All Other Non-Current Liabilities 12.6 10.0 11.3 8.8 6.8 8.0 13.6
Net Worth 41.7 31.0 39.7 24.8 12.0 40.9 33.9
Total Liabilities & Net Worth ($m) 3,190.3 2,670.8 3,299.5 2,802.2 32.9 303.3 2,465.9
Maximum Number of Statements Used 121 93 123 96 48 25 23
Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more
than 260,000 statements of member financial institutions’ borrowers and prospects.
Note: For a full description of the ratios refer to the Key Statistics chapter online.

Jargon & Glossary
Industry Jargon BABY BOOMERSThe demographic of Americans born GENERATION YThe demographic of Americans born
between 1946 and 1964, accounting for a major from 1980 through the 1990s, who are born to baby
proportion of the population. boomers and follow Generation X.
BRICK-AND-MORTARA store that has a physical LOOKBOOKA collection of photographs that showcase
presence and location, as opposed to an online retailer. a fashion line for a specific season.
COMPARABLE STORE SALESA retail measure used to MISSESA retail clothing segment targeted at
assess the true performance of retail outlets by taking fashion-conscious teen girls with relatively high levels of
out the effect of new store openings and only studying disposable income.
at sales growth of existing stores. RADIO FREQUENCY IDENTIFICATION (RFID)A
E-TAILERA retailer that primarily sells goods and technology that tracks products from the time they
services via the internet. Many of these companies do leave the assembly line to the time they leave the store
not have brick-and-mortar locations. by releasing continuous signals from a chip.
FAST FASHIONClothing collections based on the most
recent runway shows.
GENERATION XThe demographic of Americans born
between 1960 and 1980, who follow the baby-boomer
generation.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that ESTABLISHMENTThe smallest type of accounting unit
new companies struggle to enter an industry, while low within an enterprise, an establishment is a single
barriers mean it is easy for new companies to enter an physical location where business is conducted or where
industry. services or industrial operations are performed. Multiple
CAPITAL INTENSITYCompares the amount of money establishments under common control make up an
spent on capital (plant, machinery and equipment) with enterprise.
that spent on labor. IBISWorld uses the ratio of EXPORTSTotal value of industry goods and services sold
depreciation to wages as a proxy for capital intensity. by US companies to customers abroad.
High capital intensity is more than $0.333 of capital to IMPORTSTotal value of industry goods and services
$1 of labor; medium is $0.125 to $0.333 of capital to $1 brought in from foreign countries to be sold in the
of labor; low is less than $0.125 of capital for every $1 of United States.
labor.
INDUSTRY CONCENTRATIONAn indicator of the
CONSTANT PRICESThe dollar figures in the Key dominance of the top four players in an industry.
Statistics table, including forecasts, are adjusted for Concentration is considered high if the top players
inflation using the current year (i.e. year published) as account for more than 70% of industry revenue.
the base year. This removes the impact of changes in Medium is 40% to 70% of industry revenue. Low is less
the purchasing power of the dollar, leaving only the than 40%.
“real” growth or decline in industry metrics. The inflation
INDUSTRY REVENUEThe total sales of industry goods
adjustments in IBISWorld’s reports are made using the
and services (exclusive of excise and sales tax); subsidies
US Bureau of Economic Analysis’ implicit GDP price
on production; all other operating income from outside
deflator.
the firm (such as commission income, repair and service
DOMESTIC DEMANDSpending on industry goods and income, and rent, leasing and hiring income); and
services within the United States, regardless of their capital work done by rental or lease. Receipts from
country of origin. It is derived by adding imports to interest royalties, dividends and the sale of fixed
industry revenue, and then subtracting exports. tangible assets are excluded.
EMPLOYMENTThe number of permanent, part-time, INDUSTRY VALUE ADDED (IVA)The market value of
temporary and seasonal employees, working proprietors, goods and services produced by the industry minus the
partners, managers and executives within the industry. cost of goods and services used in production. IVA is
ENTERPRISEA division that is separately managed and also described as the industry’s contribution to GDP, or
keeps management accounts. Each enterprise consists profit plus wages and depreciation.
of one or more establishments that are under common
ownership or control.

Jargon & Glossary
IBISWorld Glossary INTERNATIONAL TRADEThe level of international PROFITIBISWorld uses earnings before interest and tax
trade is determined by ratios of exports to revenue and (EBIT) as an indicator of a company’s profitability. It is
continued imports to domestic demand. For exports/revenue: low is calculated as revenue minus expenses, excluding
less than 5%, medium is 5% to 20%, and high is more interest and tax.
than 20%. Imports/domestic demand: low is less than VOLATILITYThe level of volatility is determined by
5%, medium is 5% to 35%, and high is more than averaging the absolute change in revenue in each of the
35%. past five years. Volatility levels: very high is more than
LIFE CYCLEAll industries go through periods of growth, ±20%; high volatility is ±10% to ±20%; moderate
maturity and decline. IBISWorld determines an volatility is ±3% to ±10%; and low volatility is less than
industry’s life cycle by considering its growth rate ±3%.
(measured by IVA) compared with GDP; the growth rate WAGESThe gross total wages and salaries of all
of the number of establishments; the amount of change employees in the industry. The cost of benefits is also
the industry’s products are undergoing; the rate of included in this figure.
technological change; and the level of customer
acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENTBusinesses with
no paid employment or payroll, also known as
nonemployers. These are mostly set up by self-employed
individuals.

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WWW.IBISWORLD.

COM Women’s Clothing Stores in the USSeptember 2018 1

Off the rack: Rising external competition will

IBISWorld Industry Report 44812

2 About this Industry 16 International Trade 29 Revenue Volatility

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

About this Industry

Industry Definition This industry is composed of undertake sales and administrative

Main Activities The primary activities of this industry are

The major products and services in this industry are

44814 Family Clothing Stores in the US

44819 Lingerie, Swimwear & Bridal Stores in the US

45211 Department Stores in the US

45331 Used Goods Stores in the US

45411a E-Commerce & Online Auctions in the US

45411b Mail Order in the US

Provided to: Concordia University (2132861822) | 27 April 2019

About this Industry

Similar Industries 44833 Handbag, Luggage & Accessory Stores in the US

Additional Resources For additional information on this industry

IBISWorld writes over 1000 US

Provided to: Concordia University (2132861822) | 27 April 2019

Key Statistics Revenue Annual Growth 13–18 Annual Growth 18–23

$509.5m $5.7bn 34,669

Industry Structure Life Cycle Stage Mature Regulation Level Medium

Provided to: Concordia University (2132861822) | 27 April 2019

Provided to: Concordia University (2132861822) | 27 April 2019

Per capita disposable income Households earning more than $100,000

Provided to: Concordia University (2132861822) | 27 April 2019

Current Over the past five years, the Women’s

Even so, some premium brand and

competition have resulted in mixed

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Mixed performance Despite overall revenue decline over

Provided to: Concordia University (2132861822) | 27 April 2019

Industry Over the five years to 2023, the Women’s

Specialty growth Over the next five years, as price

Provided to: Concordia University (2132861822) | 27 April 2019

Industry landscape Over the five years to 2023,

Provided to: Concordia University (2132861822) | 27 April 2019

Provided to: Concordia University (2132861822) | 27 April 2019

Provided to: Concordia University (2132861822) | 27 April 2019

Products & Markets

Supply Chain KEY BUYING INDUSTRIES

KEY SELLING INDUSTRIES

Products and Services Products and services segmentation (2018)

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Products & Markets

Dresses All other items

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Products & Markets

Major Markets Major market segmentation (2018)

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Products & Markets

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Products & Markets

Business Locations 2018

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Products & Markets

Business Locations Similar to many other retail industries,

account for the largest share of industry

Provided to: Concordia University (2132861822) | 27 April 2019

Key Success Factors Attractive product presentation Proximity to key markets

COM Women’s Clothing Stores in the USSeptember 2018 1