Overstock.com - Competitors

Overstock.com Competition

Now Viewing Overstock.com's competition in: Clothing Stores

Recent Developments

Weak US Back-to-School Sales Expected - US economic weakness, rising prices, and tight credit markets slowed retail sales growth during the 2008 back-to-school season. Total US same-store retail sales were expected to have risen just 1.6 percent in August 2008 compared to August 2007, according to RetailMetrics. Consumer income isn't keeping up with rising prices, which isn't expected to change soon.

Men's Clothing Store Launches Social Networking Site - Clothing retailer Casual Male has launched a social networking site aimed at large or tall fashion-conscious young men. While Casual Male is the largest US chain offering plus size clothing for men, less than 10 percent of the company's customers are 18 to 24. Casual Male hopes to win a larger share of that age group by providing an online community where fashion tips can be shared and youth-oriented apparel offered.

Credit Problems Hit Clothing Stores - The tight credit market is beginning to negatively impact clothing stores facing higher cost of goods sold. Clothing retailers Goody's Family Clothing and Steve and Barry's cited liquidity shortfalls caused by limited borrowing capacity when filing for Chapter 11 bankruptcy protection in mid-2008. Goody's hopes to emerge from bankruptcy by streamlining operations and closing underperforming stores; Steve and Barry's will explore selling the company while cutting staff and improving operations.

Competitive Landscape

Personal income and fashion trends drive demand for clothing. The profitability of individual companies depends heavily on effective merchandising and marketing. Large companies can offer wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small stores can compete by offering unique merchandise, targeting a specific demographic, providing superior customer service, or serving a local market. The industry is labor-intensive: annual revenue per worker is about $130,000.

Full Industry Overview For Clothing Stores

Clothing Stores Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures on clothing, an indicator for clothing stores, are forecast to grow at an annual compounded rate of 5.9 percent between 2008 and 2013.

Consumer Spending Growth of Clothing Stabilizes

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.