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: Taxable retail refers to the sale of tangible personal property, selected digital products, and certain services that are subject to sales and use tax laws. It covers a wide range of products across various categories including food & beverages, apparel, electronics, furniture, and health & beauty. Both brick-and-mortar as well as online channels contribute significantly to the taxable retail market. Market Dynamics: Consolidation - The taxable retail landscape is witnessing high consolidation activity as major retailers acquire smaller chains to attain economies of scale and expand footprint. For instance, Albertsons completed the acquisition of Rite Aid to become one of the largest retail pharmacy chains in the U.S. Such consolidation moves help retailers strengthen supply chain and distribution network. E-commerce Adoption - The retail market is transitioning steadily towards the online platform with growing customer preference for contactless shopping during the pandemic. E-retail giants like Amazon and Walmart have further increased their investments to cater to the rising demand. Rapid expansion of digital channels and fulfillment capabilities is expected to boost taxable retail market growth over the forecast period. SWOT Analysis Strength: The Taxable Retail Market in the US benefits from a large consumer base, high disposable incomes, and extensive retail infrastructure across the country. Retailers leverage advanced technologies and omnichannel capabilities to enhance customer experience. Growing eCommerce adoption also allows retailers to efficiently reach consumers across various locations. Weakness: Brick-and-mortar retailers face challenges from rising rent and labor costs, supply chain issues, and shifting customer preference toward online shopping. The threat of new market entrants offering better consumer value through innovative business models and tech-enabled platforms remains high. Opportunity: Growth of emerging retail channels such as social commerce and mobile shopping presents an opportunity for capturing new customer segments. Omnichannel fulfillment strategies help optimize inventory and improve last-mile delivery. Data-driven marketing powered by AI/ML allows for personalized promotions and loyalty programs. Threats: Aggressive price wars during festival seasons can impact profit margins. Stringent data privacy regulations increase compliance costs. Natural calamities and pandemics disrupt operations. 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 adoption of eCommerce and rising consumer spending power. The market was valued at US$ 13.49 Bn in 2023 and is projected to reach US$ 18.70 Bn by 2030. Regional analysis: The US dominates the global taxable retail market with the highest market share, accounting for over 60% of the global demand in 2023. String presence of major retailers, high urban retail density, and growing acceptance of digital shopping fuels the US retail industry. China exhibits the fastest growth rate over the forecast period, driven by expanding middle-class population and developing omni-channel strategies of Chinese retailers. 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, and Macy's. These players are focusing on enhancing digital experiences, private label brands, and supply chain capabilities to consolidate their market presence. Read More : https://www.ukwebwire.com/the-taxable-retail-market-demand-forecast-opportunities/
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