$65.7bn
$X.Xbn
310k
155k
$X.Xbn
The Small Specialty Retail Stores industry is driven by broad macroeconomic variables rather than product-specific trends. Still, individual segments do respond to specific shifts in consumer preferences. Over the past five years, rising per capita disposable income has sustained demand throughout the retail sector. A recovery from the pandemic boosted consumer spending and encouraged consumers to return to brick-and-mortar stores. Specialty retailers were relatively unaffected by coronavirus declines as high-income consumers and tobacco users, two significant markets for the industry, continued to spend. Competition from online and big-box retailers has risen, putting downward pressure on industry profit. Overall, industry revenue has expanded at a CAGR of 3.5% over the past five years, reaching an estimated $65.7 billion in 2023, when profit will comprise an estimated 5.2% of revenue.
Despite intensifying competition from discount department stores and online retailers, specialty retail store sales will rise an estimated 2.8% in 2023. Big-box stores offer a one-stop shopping experience with lower prices for similar products. External competition has driven underperforming retailers to exit the industry, leaving nonemployers and small retail stores with low barriers to entry. Still, rising demand has prompted the emergence of many new specialty retailers seeking to capitalize on the post pandemic trend of shopping locally and broader sustainability trends. Small retailers have maintained a strong customer base by offering a unique in-store experience and high-quality products.
Moving forward, small specialty retailers will continue expanding, albeit slower than in the previous five-year period. Over the next five years, revenue will swell at a CAGR of 2.8% to reach an estimated $81.4 billion in 2028. A rise in consumer spending and consumer confidence compounded by growing environmental awareness will support specialty retail store sales. Ongoing competition from large-scale retailers and declining smoking rates will mitigate specialty retailers' expansion.
Industry revenue has grown at a CAGR of 3.5 % over the past five years, to reach an estimated $65.7bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Leslie's Poolmart, Inc. | 1,381.9 | 130.9 | 9.5 | |
Williams-Sonoma, Inc. | 401.2 | 58.8 | 14.6 |
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Industry revenue is measured across several distinct product and services lines, including Tobacco products and smokers' accessories, Collectibles and used goods and Home and garden. Tobacco products and smokers' accessories is the largest segment of the Small Specialty Retail Stores in the US.
E-cigarettes keep tobacco product retailers afloat
Industry operators retail specialized lines of goods: kitchenware, art supplies, cigarettes and cigars, collectors’ items, fireworks and trophies. This industry also includes general merchandise auction houses (except electronic auctions), but excludes mass merchandisers, department stores, grocery stores, warehouse clubs and supercenters.
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NAICS 45399 - Small Specialty Retail Stores in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
E-cigarettes maintain sales for tobacco stores. Despite a steady decline in traditional cigarette smokers, e-cigarettes have created a new market of younger consumers.
Learn about an industry's products and services, markets and trends in international trade.
The rising popularity of e-cigarettes is offsetting declines in traditional cigarette usage. Cigarette and tobacco retailers remain the most popular type of specialty retail ...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Specialty retail stores flock to population centers to maximize potential revenue. As the most populated region of the US, the Southeast holds more specialty stores than any ...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Specialty retailers have contended with increasing competition from big box retailers. Large-scale department stores offer lower prices and a more convenient shopping experie...
Learn about the performance of the top companies in the industry.
No specialty retailer generates more than 5.0% of industry revenue. The nature of specialty retail keeps any company from expanding significantly since stores’ product portfo...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Specialty retailers are subject to cigarette and tobacco product regulations. Tobacco products comprise more than one-third of specialty retail store sales.
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Profit margins vary among specialty retailers since these stores sell a wide range of products. Different product lines carry distinct purchase costs and selling prices.
Including values and annual change:
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Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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The market size of the Small Specialty Retail Stores in the US industry in United States is $65.7bn in 2024.
There are 155k businesses in the Small Specialty Retail Stores in the US industry in United States, which has grown at a CAGR of 1.6 % between 2018 and 2023.
The market size of the Small Specialty Retail Stores in the US industry in United States has been growing at a CAGR of 3.5 % between 2018 and 2023.
Over the next five years, the Small Specialty Retail Stores in the US industry in United States is expected to grow.
The biggest companies operating in the Small Specialty Retail Stores market in United States are Leslie's Poolmart, Inc. and Williams-Sonoma, Inc.
General merchandise and Tobacco and tobacco products are part of the Small Specialty Retail Stores in the US industry.
The company holding the most market share in United States is Leslie's Poolmart, Inc..
The level of competition is high and steady in the Small Specialty Retail Stores in the US industry in United States.