Plus size clothing stores across Australia have thrived in a time of economic uncertainty and weak retail conditions, according to a report by IbisWorld.
Around 63.2 per cent of the population is considered overweight or obese. This represents a large potential consumer market for the industry. Over the five years to 2013/14, industry revenue is expected to grow by an annualised 4.1 per cent to reach $740.7 million.
The plus size clothing stores industry is characterised by a low level of concentration. The top three major players – Specialty Fashion Group, TS 14 Plus Australia, and Pretty Girl Fashion Group – all retail women’s clothing and have in excess of 100 stores.
Over the five years to 2013, Specialty Fashion Group and TS 14 Plus have slightly increased their market share due to organic company expansion and acquisitions, however, Pretty Girl Fashion Group has lost market share.
In addition, many small independent stores have been entering the market to capitalise on its growth. This has caused a reduction in concentration levels.
Although other retail industries have suffered over the past five years, the plus size clothing stores industry has flourished due to strong consumer demand.
The report attributes growth in disposable incomes and consumer sentiment to the increases in revenue, while consistent rises in Australia’s obesity levels have also helped.
IbisWorld industry analyst, Lauren Magner says: “Not only have specialised plus size clothing retailers recognised the opportunity for growth within the industry, but department stores and general clothing retailers are also getting involved, with many expanding their plus size collections over the past five years”.
This has increased overall competition for industry operators. In addition, the increasing popularity of online shopping has affected demand for plus size clothing stores.
Websites that cater specifically to plus size consumers, and existing online clothing stores that have expanded their range of sizes, have further intensified competition for industry operators.
As department stores, general clothing retailers and online websites continue to develop new styles and designs in larger sizes, industry revenue is expected to slow marginally.
Over the past five years, a surge in store numbers has provided fashion conscious consumers with a wider selection of on-trend clothing.
“Although purchase costs for plus size clothing stores are higher than general retail stores, many industry retailers are able to pass on higher prices to consumers,” said Magner.
As a result of operating in a relatively niche market, profit margins for the industry are higher than for general clothing retailers. Fashion shows featuring full figured models are also expected to boost demand for fashionable clothing sold by the industry.
For more information, visit IbisWorld’s Plus Size Clothing Stores report.
