Tile and Marble Stores in the US Industry Market Research Report ...

Los Angeles, CA (PRWEB) June 07, 2012

The Tile and Marble Stores industry has been set back by a prolonged and substantial downturn in the home improvement and new construction markets. Retailers in this industry primarily sell to professional contractors in the residential and non-residential building markets, and to do-it-yourself homeowners. ?Industry products are bought during new construction projects or remodeling activities, which have shrunk as a result of lower consumer spending, and a severe drop in investment in the housing and nonresidential construction markets over the past five years,? said IBISWorld industry analyst Andrea Alegria Consequently, revenue is expected to decline at an average annual rate of 4.0% over the five-year period to total $ 5.1 billion in 2012. Significant declines in housing starts and remodeling following the housing market?s collapse contributed to revenue declining each year from 2007 to 2009, with the steepest decline of 18.2% occurring in 2009. Firms also battled intensified competition from home improvement stores, such as The Home Depot and Lowe?s, which were able to leverage their size to achieve significant cost savings on tile and marble products and pass them down to consumers in the form of lower prices. These home improvement stores increasingly appealed to do-it-yourself-consumers during hard economic times.

As most firms experienced double-digit declines in sales volumes, many were forced to reduce their workforce, shut down stores and look for other ways to cut costs. In the five years to 2012, establishments are expected to decline at an average annual rate of 3.0 to about 2,014. Since 2010, but, demand conditions have slowly improved, with the economy gradually strengthening. Housing starts have increased slightly and remodeling sentiment has been stabilizing, which has led to positive year-on-year revenue growth for the industry since 2010. Revenue is expected to further grow 4.2% over 2012, as housing completions rebound and consumer spending on improvement and repair projects increases.

On the heels of the economic recovery, IBISWorld forecasts steady growth for the industry in the five years to 2017. While competition will remain high, the upturn of the housing market will boost overall demand for tile and marble products. The Tile and Marble Stores industry has a low level of concentration, with the four largest players accounting for less than 20.0% of industry revenue in 2012. According to Alegria, concentration is low because it is hard for a single establishment to cover a large geographic area. Shipping and transportation costs are immense in this industry; and, as a result, many consumers and developers choose to go to their local tile and marble stores. As such, firms need to open more stores to increase their revenue share. But, operators were hesitant post-recession to open new stores. As a result, over the past five years, the market has become more fragmented as revenue fell at a quicker rate than firms went out of business. The average firm is expected to generate $ 2.5 million in 2012, down from $ 2.7 million in 2017. For more information, visit IBISWorlds Tile and Marble Stores in the US industry report page.

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IBISWorld industry Report Key Topics

This industry primarily sells tile and marble. The industry does not include mass merchants or home improvement stores, but it does include manufacturers sales branches.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalization & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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