Specialty Retail Industry

1901 Words Apr 6th, 2008 8 Pages
Industry Overview

Some 400,000 specialty retail stores operate in the US with combined annual sales of $350 billion CAGR 2002-06: 5% Market is dominated by large players like Best Buy, Toys “R” Us, Gap, Sports Authority, etc The market size of some major product categories: o Shoes and clothing - $125 billion o Electronics and appliances - $85 billion o Jewelry - $25 billion o Sporting goods - $25 billion o Books - $25 billion Other categories include Toys, Music, Luggage, Pet supplies, etc
Specialty retailers cater to a narrow or niche audience – either by location, type of customer or product mix. On a national level, specialty retailing is dominated by national chains, such as office supply store Staples or
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They have attracted millions of viewers on You Tube by making funny, outrageous and remarkable videos. They are termed as “viral videos” as they are spread by friends, family and relatives who want others to check those videos out. One such video can be seen at http://www.youtube.com/profile_videos?user=Blendtec
 Kiosk based franchise business: Many successful specialty retailers are dreaming of expanding their businesses through franchising. Cart and kiosk based franchises are gaining popularity because of less set-up and overhead costs.
Franchising contributes more than $1.5 trillion to the US economy and is also the source of jobs for more than 18 million Americans, according to the International Franchise Association (IFA) a Washington based organization that offers resources to the franchise community. There are more than 2500 franchise concepts in the US with 900 new concepts introduced since 2003. The fastest growing category is specialty fast food and ethnic food.
There are already a number of cart and kiosk based franchises out there for specialty retailers who not only want to be in business for themselves but also want the support of a franchisor who knows its product inside-out and understands the most effective way to sell the product for maximum profitability.
Some emerging Kiosk based franchise
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