The Off Price Retail Market is Expected to be driven by price-sensitive consumers

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Off-price retail refers to the retail model that offers brand name or designer merchandise at prices generally 20–60% below traditional retailer's prices by purchasing overstock and irregular inventory directly from manufacturers and other suppliers. Off-price retailers offers a wide range of products across categories such as apparel, footwear, accessories, home goods and more from both public brands and private labels. With offerings changing constantly, off-price shopping provides a "treasure hunt" experience for consumers. The global off price retail market allows brand conscious customers to indulge in high quality fashion at affordable prices.

The global Off Price Retail Market is estimated to be valued at US$ 315.78 Bn in 2023 and is expected to exhibit a CAGR of 8.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends in the off-price retail market is the adoption of omni-channel strategy. To cater to evolving consumer shopping preferences, leading off-price retailers are focusing on enhancing their digital capabilities and optimizing omnichannel operations. For instance, TJX Companies launched its e-commerce platform in 2016 and continues expanding its assortment and fulfillment capabilities. Integrating the brick and mortar stores with online channels allows off-price retailers to serve customers anytime and anywhere through various touchpoints, driving their reach as well as sales.

Porter’s Analysis

Threat of new entrants: Low economies of scale and high investment required in establishing distribution centers and maintaining inventory levels protect existing players.

Bargaining power of buyers: Buyers have moderate bargaining power as there are few substitutes for off-price retailers offering hefty discounts. However, buyers can easily switch between brands and stores.

Bargaining power of suppliers: Large off-price retailers have significant bargaining power over suppliers as they buy huge volumes. Suppliers also rely on these retailers to sell leftover inventory.

Threat of new substitutes: Growing e-commerce channels and ways to liquidate surplus inventory pose a moderate threat. However, touch-and-feel experience keeps off-price formats uniquely positioned.

Competitive rivalry: Intense competition among major players to gain market share through expansion and acquisition of private labels. Aggressive pricing also characterizes the industry.

Key Takeaways

The global Off Price Retail Market Demand is expected to witness high growth over the forecast period. Regionally, North America dominates the market currently. With the low-cost model gaining popularity, other regions especially Asia Pacific and Central and South America are anticipated to offer lucrative opportunities.

Regional analysis: North America accounts for the largest share of the global off price retail market currently. The US leads owing to high disposable incomes and preference for bargain shopping. Changing shopping patterns are also fueling growth. Europe follows behind whereas Asia Pacific is identified as the fastest growing market with China, Japan and India emerging as major hotspots.

Key players: Key players operating in the off price retail market are TJX Companies Inc., Ross Stores Inc., Burlington Stores Inc., Nordstrom Rack (Nordstrom Inc.), Marshalls (TJX Companies Inc.), DSW (Designer Brands Inc.), Macy's Backstage (Macy's Inc.), Century 21 Department Store, Saks OFF 5TH (Hudson's Bay Company), Stein Mart Inc., Sierra Trading Post (The TJX Companies Inc.), Off Broadway Shoe Warehouse, Gordmans (Stage Stores Inc.), Bealls Outlet (Bealls Inc.), Gabriel Brothers Inc.

Explorer more information on this topic, Please visit @ https://www.insightprobing.com/off-price-retail-market-demand-share-analysis/

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