Small Specialty Retail Stores in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS 45399Revenue
$65.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
310k
Businesses
155k
Wages
$X.Xbn
Small Specialty Retail Stores in the US industry analysis
The Small Specialty Retail Stores industry is driven by broad macroeconomic variables rather than product-specific trends. Still, individual segments do respond to specific shifts in consumer preferences. Over the past five years, rising per capita disposable income has sustained demand throughout the retail sector. A recovery from the pandemic boosted consumer spending and encouraged consumers to return to brick-and-mortar stores. Specialty retailers were relatively unaffected by coronavirus declines as high-income consumers and tobacco users, two significant markets for the industry, continued to spend. Competition from online and big-box retailers has risen, putting downward pressure on industry profit. Overall, industry revenue has expanded at a CAGR of 3.5% over the past five years, reaching an estimated $65.7 billion in 2023, when profit will comprise an estimated 5.2% of revenue.<br />Despite intensifying competition from discount department stores and online retailers, specialty retail store sales will rise an estimated 2.8% in 2023. Big-box stores offer a one-stop shopping experience with lower prices for similar products. External competition has driven underperforming retailers to exit the industry, leaving nonemployers and small retail stores with low barriers to entry. Still, rising demand has prompted the emergence of many new specialty retailers seeking to capitalize on the post pandemic trend of shopping locally and broader sustainability trends. Small retailers have maintained a strong customer base by offering a unique in-store experience and high-quality products.<br />Moving forward, small specialty retailers will continue expanding, albeit slower than in the previous five-year period. Over the next five years, revenue will swell at a CAGR of 2.8% to reach an estimated $81.4 billion in 2028. A rise in consumer spending and consumer confidence compounded by growing environmental awareness will support specialty retail store sales. Ongoing competition from large-scale retailers and declining smoking rates will mitigate specialty retailers' expansion.
Trends and Insights
- E-cigarettes maintain sales for tobacco stores. Despite a steady decline in traditional cigarette smokers, e-cigarettes have created a new market of younger consumers.
- The rising popularity of e-cigarettes is offsetting declines in traditional cigarette usage. Cigarette and tobacco retailers remain the most popular type of specialty retail store.
- Specialty retail stores flock to population centers to maximize potential revenue. As the most populated region of the US, the Southeast holds more specialty stores than any other region.
- Specialty retailers have contended with increasing competition from big box retailers. Large-scale department stores offer lower prices and a more convenient shopping experience.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 3.5 % over the past five years, to reach an estimated $65.7bn in 2023.
Trends and Insights
A postpandemic revolution drives shoppers to specialty retail stores
- Pent-up demand following COVID-19 precipitated a shopping surge, with customers opting for in-person experiences at retail stores.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Work-from-home will limit foot traffic to specialty retail stores
- As many companies maintain fully remote or hybrid work policies, commuting rates will dwindle. Since specialty stores are often located in high-foot-traffic areas to attract consumers, fewer commuters will lessen specialty stores' visibility.
Biggest companies in the Small Specialty Retail Stores in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Leslie's Poolmart, Inc. | 1,381.9 | 130.9 | 9.5 | |
Williams-Sonoma, Inc. | 401.2 | 58.8 | 14.6 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Tobacco products and smokers' accessories, Collectibles and used goods and Home and garden. Tobacco products and smokers' accessories is the largest segment of the Small Specialty Retail Stores in the US.
Trends and Insights
E-cigarettes keep tobacco product retailers afloat
- These products include cigars, cigarettes, chewing tobacco and snuff, and accessories like lighters, pipes, rolling papers, vaporizers and hookahs.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Jewelry Stores in the US
- Department Stores in the US
- Gift Shops & Card Stores in the US
- Used Goods Stores in the US
- Art Dealers in the US
- E-Commerce & Online Auctions in the US
- Mail Order in the US
Complementors
- There are no industries to display.
International industries
- Small Specialty Retail Stores in Canada
- Tobacconists in the UK
Table of Contents
About this industry
Industry definition
Industry operators retail specialized lines of goods: kitchenware, art supplies, cigarettes and cigars, collectors’ items, fireworks and trophies. This industry also includes general merchandise auction houses (except electronic auctions), but excludes mass merchandisers, department stores, grocery stores, warehouse clubs and supercenters.
What's included in this industry?
General merchandise Tobacco and tobacco productsArt suppliesCollectors' itemsFireworksCandlesHome goodsBooksSpecialized occupational supplies Sports equipmentCompanies
Leslie's Poolmart, Inc.Williams-Sonoma, Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
POINT-OF-SALEBRICK-AND-MORTAR STOREE-TAILERELECTRONIC DATA INTERCHANGEBIG-BOX STOREHOOKAHE-CIGARETTEIndustry Code
NAICS 45399 - Small Specialty Retail Stores in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
E-cigarettes maintain sales for tobacco stores. Despite a steady decline in traditional cigarette smokers, e-cigarettes have created a new market of younger consumers.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The rising popularity of e-cigarettes is offsetting declines in traditional cigarette usage. Cigarette and tobacco retailers remain the most popular type of specialty retail ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Specialty retail stores flock to population centers to maximize potential revenue. As the most populated region of the US, the Southeast holds more specialty stores than any ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Specialty retailers have contended with increasing competition from big box retailers. Large-scale department stores offer lower prices and a more convenient shopping experie...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No specialty retailer generates more than 5.0% of industry revenue. The nature of specialty retail keeps any company from expanding significantly since stores’ product portfo...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Leslie's Poolmart, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Williams-Sonoma, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Leslie's Poolmart, Inc., and factors influencing its performance in the industry
- Description and key data for Williams-Sonoma, Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Specialty retailers are subject to cigarette and tobacco product regulations. Tobacco products comprise more than one-third of specialty retail store sales.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins vary among specialty retailers since these stores sell a wide range of products. Different product lines carry distinct purchase costs and selling prices.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Small Specialty Retail Stores in the US industry in United States in 2024?
The market size of the Small Specialty Retail Stores in the US industry in United States is $65.7bn in 2024.
How many businesses are there in the Small Specialty Retail Stores in the US industry in 2023?
There are 155k businesses in the Small Specialty Retail Stores in the US industry in United States, which has grown at a CAGR of 1.6 % between 2018 and 2023.
Has the Small Specialty Retail Stores in the US industry in United States grown or declined over the past 5 years?
The market size of the Small Specialty Retail Stores in the US industry in United States has been growing at a CAGR of 3.5 % between 2018 and 2023.
What is the forecast growth of the Small Specialty Retail Stores in the US industry in United States over the next 5 years?
Over the next five years, the Small Specialty Retail Stores in the US industry in United States is expected to grow.
What are the biggest companies in the Small Specialty Retail Stores in the US market in United States?
The biggest companies operating in the Small Specialty Retail Stores market in United States are Leslie's Poolmart, Inc. and Williams-Sonoma, Inc.
What does the Small Specialty Retail Stores in the US in United States include?
General merchandise and Tobacco and tobacco products are part of the Small Specialty Retail Stores in the US industry.
Which companies have the highest market share in the Small Specialty Retail Stores in the US in United States?
The company holding the most market share in United States is Leslie's Poolmart, Inc..
How competitive is the Small Specialty Retail Stores in the US industry in United States?
The level of competition is high and steady in the Small Specialty Retail Stores in the US industry in United States.
