May 29, 2024
Off Price Retail Market
Ict

The Off Price Retail Market Driven By Growing Popularity Of Value Fashion Is Expanding Rapidly

Off price retail refers to the retail model where brand name merchandise is sold at prices typically 20–60% below typical department or specialty store prices. Off-price retailers acquire merchandise from brands without contracts and sell them in smaller individual stores with fewer employee. Apparel and accessories constitute a major chunk of the products sold through off-price retail stores including branded clothes, shoes and modern home décor items. The growing popularity of value fashion and constant demand for latest trends at affordable prices has been driving the off-price retail market.

The global Off Price Retail Market is estimated to be valued at US$ 315.78 billion in 2023 and is expected to exhibit a CAGR of 5.3% 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 has been the rising focus towards omnichannel experience. Consumer preference towards experiential and convenience shopping has prompted brands to enhance their digital capabilities. Off price retailers are increasingly leveraging personalization, mobile apps, social media and buy online pick up in store options to offer seamless shopping journey across physical and digital platforms. E-commerce sales are growing significantly as brands offer their discounted merchandise online and provide shipping and easy return services. Furthermore, partnerships with third party marketplaces are helping retailers reach wider audience and drive greater revenue through multiple sales channels. Advanced data analytics is also being utilized to gain deeper consumer insights, precisely forecast demand and manage inventory more efficiently. The omnichannel strategy is expected to remain a key trend that aids off price retailers sustain growth over the coming years.

Porter’s Analysis

Threat of new entrants: Low barrier to entry can increase competition in the off-price retail market.

Bargaining power of buyers: Buyers have high bargaining power due to availability of substitute products.

Bargaining power of suppliers: A few major suppliers dominate the market, increasing their bargaining power.

Threat of new substitutes: Threat of new substitutes is moderate as it requires establishing new supply chains and retail networks.

Competitive rivalry: Intense competition exists among major established players.

Key Takeaways

The global Off Price Retail Market Share is expected to witness high growth.

Regional analysis: The North American region dominates the off price retail market currently due to high density of outlets. Europe is also a major market driven by value consciousness of consumers.

Key players:

Key players operating in the off price retail market are Amphenol Sine Systems, Easter Corporate, TJX Companies, Ross Stores, Burlington Stores.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it