by 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% over the forecast period 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The taxable retail market comprises of retail sales of tangible personal property subject to state and local sales taxes. It includes merchandise like apparel, electronics, furniture, jewelry, cosmetics, and groceries. The taxable retail sector benefits from the advantages of being able to view and touch products before purchase. It also allows customers to get instant gratification of purchases. The physical presence of stores allows retailers to provide value-added services like assistance, exchanges, and easy returns or refunds. This fosters customer loyalty and repeat business.
Market Key Trends:
One of the major trends in the taxable retail market is the increasing dominance of e-commerce. The widespread adoption of smartphones and internet connectivity has propelled the e-commerce boom. Retailers are investing heavily in expanding their online presence to take advantage of the digital shift in consumer shopping behavior. E-commerce offers consumers benefits like convenience of shopping from any location at any time, comparative research of products and prices, extensive product catalogs, expedited delivery options, and cash-back or loyalty programs. Retailers can reach a wider audience through multiple online channels while reducing rental costs for physical stores. This is expected to significantly transform the taxable retail industry dynamics in the forecast period.
Porter’s Analysis
Threat of new entrants: The Taxable Retail Market faces low threat from new entrants as the retail market is fragmented and moderately competitive requiring significant investments to establish supply chains and brand recognition.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternatives however unique product portfolios offered by retailers provides some customer lock-in.
Bargaining power of suppliers: Suppliers have low bargaining power as there are numerous supplier alternatives available for retailers to choose from.
Threat of new substitutes: Threat from substitutes is moderate as shifting purchasing preferences to e-commerce presents an ongoing threat to brick and mortar retail stores.
Competitive rivalry: The taxable retail market sees intense competition among existing players.
Key Takeaways
The global taxable retail market is expected to witness high growth, exhibiting a CAGR of 7.9% over the forecast period of 2023 – 2030, due to increasing consumer spending on discretionary goods. The market was valued at US$ 13.49 Bn in 2023.
Regional analysis
The US dominates the taxable retail market currently owing to high retail spending from consumers. However, Asia Pacific is projected to emerge as the fastest growing regional market attributed to rising disposable incomes and changing retail patterns in countries like China and India.
Key players
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. Players are focusing on omnichannel strategies and enhancing their e-commerce capabilities to gain market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
