The Global Taxable Retail Market Is Estimated To Be Valued At US$ 13.49 Bn Or Mn In 2023 And Is Expected To Exhibit A CAGR Of 7.9%
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| Taxable Retail Market |
The taxable retail market is estimated to be valued at
US$ 13.49 Bn 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 consists of the sale of a wide range of taxable
consumer goods including apparel, consumer electronics, home goods, groceries,
and general merchandise. These goods serve essential demands of households and
play an important role in day to day lives. The evolving e-commerce landscape
and omni-channel strategies adopted by retailers is positively impacting the
growth of this market.
Market key trends:
The evolving e-commerce landscape is one of the major trends fueling the growth
of the taxable retail market. The growing adoption of digital channels for
shopping along with the emergence of online-only retailers has disrupted the
traditional retail space. According to a recent survey, e-commerce penetration
for the total retail sales in the US reached 21.3% in 2021 and is expected to
surpass 25% by 2023. Retailers are focusing on strengthening their digital
presence and adopting omni-channel business strategies to cater to the growing
demand from online shoppers. The growing mobile commerce along with innovative
payment solutions is also supporting the ongoing shift towards online shopping.
Porter's Analysis
Threat of new entrants: New companies find it difficult to enter this
established market due to high initial investment and competition from existing
large retailers.
Bargaining power of buyers: Buyers have high bargaining power due to
availability of substitutes and low switching costs. Retailers need to offer
competitive prices and deals to attract customers.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to
presence of many manufacturers and suppliers for most products. However, retail
chains leverage their scale to negotiate better terms.
Threat of new substitutes: Threat from alternate channels like e-commerce
platforms is high as they provide convenience of shopping from home.
Competitive rivalry: Intense competition exists among major retailers to gain
market share through expansion, acquisitions and price wars.
SWOT Analysis
Strength: Established supply chain and distribution network. Loyal customer
base and brand recognition. Offer omnichannel shopping experience.
Weakness: Higher fixed costs and capital requirements. Vulnerable to economic downturns
impacting discretionary spending. Declining footfalls in physical stores.
Opportunity: Growing online sales and omnichannel capabilities. Penetrate
underserved rural markets. Expand private label offerings.
Threats: Rising competition from e-commerce players. Shift to online platforms
during pandemic. Increased regulations around wages, workforce and
environmental standards.
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 disposable incomes and retail expansion in emerging
economies. The US dominates the market currently due to a large consumer base
and presence of major retail chains. The Asia Pacific region is expected to be
the fastest growing market owing to rising middle class population and economic
growth in countries like China and India.
Regionally, the US accounts for around 30% share of the global market currently
supported by factors like rapid urbanization, high consumer spending and
presence of retail giants. The Asia Pacific region is poised to grow at a CAGR of over 9% during the forecast
period owing to rising living standards, improving retail infrastructure and
changing lifestyles in developing countries.
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. Major players are focusing on new
store expansions, acquisitions, private label growth and digital/omnichannel
investments to strengthen their market position.
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