by The taxable retail market is estimated to be valued at US$ 13.49 Bn or in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The taxable retail market involves sale of tangible goods to end consumers. Key products include clothing, footwear, food items, consumer electronics, home appliances, furniture, and more. Both online and offline channels cater to varied shopping needs of consumers.
Market Dynamics:
Rising disposable income: Growing middle-class population with increasing disposable income is a key driver stimulating demand for wide variety of retail products. Developed nations as well as developing regions are witnessing substantial income growth boosting overall retail sales.
Convenience of online platforms: Ease of online shopping provided by retail giants has led to migration of consumers towards digital channels. Around-the-clock shopping accessibility coupled with benefits such as easy payments, quick deliveries, and discounts/offers has bolstered e-commerce adoption.
Market Key Trends:
The taxable retail market has been witnessing a rising demand for omnichannel retailing experience. Consumers now expect a seamless shopping experience across online and offline channels from retailers. Many retail brands are investing heavily in developing their digital infrastructure to offer features such as buy online and pick-up in-store, ship from store, curbside pickup etc. to provide a unified shopping journey. Advancements in technologies such as AI and analytics are also helping retailers in improving their supply chain operations and providing personalized product recommendations to customers.
SWOT Analysis:
Strength: Large retailers in the Taxable Retail Market such as Walmart, Target have strong supply chain and logistics capabilities as well as widespread physical store networks.
Weakness: Brick and mortar retailers face challenges from rising prominence of e-commerce giants. Higher operating costs associated with physical stores.
Opportunity: Growth in online shopping and increasing popularity of omni-channel retailing provides major opportunities for retailers to enhance customer experience.
Threats: Intense competition from online retailers can eat into the market share of physical stores. Changing consumer preferences pose threats if retailers are not able to adapt quickly.
Key Takeaways
The global taxable retail market is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period, due to increasing consumer preference for online shopping especially during pandemics.
The US accounts for the major share of the global market currently owing to strong dominance of American retailers such as Walmart and Target. China is expected to be the fastest growing market in the coming years supported by growth of e-commerce, rising incomes and expanding middle class population.
Key players operating in the taxable retail market are Walmart, Amazon, Costco, Target, Best Buy, Home Depot, Kroger, Lowe’s, Albertsons, Publix, Walgreens Boots Alliance, CVS Health, 7-Eleven, Rite Aid, Ace Hardware, Menards, Dick’s Sporting Goods, L Brands, Nordstrom, Macy’s. Walmart and Amazon dominate the global marketplace due to their robust digital as well as physical infrastructure and ability to meet diverse customer demands.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
