Shifts toward new technologies and large-scale retailers will restrict growth in U.S.-based photography stores, according to analysts at IBISWorld. “Intensified competition from online retailers and consumer electronic stores reduced the number of consumers that purchase items from camera stores, forcing several companies to exit the industry.”
Revenue is forecast to decline at an average rate of 2.1% per year, the research firm adds, and the industry is projected to “contract further in the five years to 2019, as product substitution and external competition cut into industry revenue.”
Per-capita camera consumption “has declined during the period as consumers increasingly opt to take pictures with smartphones,” Los Angeles-based IBISWorld adds, citing other factors such as e-tailers undercutting industry prices, and large stores such as Best Buy or Wal-mart being more convenient for consumers.
“To remain competitive amid heavy competition, industry operators will likely specialize in niche products with a heavy emphasis on customer service and technical expertise,” the firm concludes.