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Footwear Wholesaling in Canada - Industry Market Research Report

Footwear Wholesaling in Canada - Industry Market Research Report

  • October 2019
  • 32 pages
  • ID: 4387194
  • Format: PDF
  • By Ibisworld

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Sole salvation: The depreciation of the Canadian dollar is expected to fuel the industry’s sluggish growth

Abstract

Footwear Wholesaling in Canada
The depreciation of the Canadian dollar has fuelled the Canadian Footwear Wholesaling industry’s sluggish growth over the five years to 2019. Despite these troublesome operating conditions, revenue growth has trended upward. Macroeconomic variables, such as the exchange rate, and supply chain management strategies, such as wholesale bypass, greatly influence demand for this industry. When the exchange rate appreciates, imported goods become less expensive on the domestic market, thereby increasing demand for such goods. Wholesalers tend to assume much of the risk associated with the supply of imported goods to the domestic market, including exchange rate fluctuations and its effect on the valuation of inventories. Wholesalers also shoulder procurement, distribution and quality assurance risks associated with importing footwear. Consequently, an increase in demand for imported footwear leads to increasing relevance of industry operators to the footwear sector’s supply chain. Continued industry growth is expected over the five years to 2024. A stagnant Canadian dollar will likely be balanced out by improving economic conditions, fuelling revenue growth.

The Footwear Wholesaling industry in Canada wholesales footwear, including athletic shoes, made of leather, rubber and other materials. Operators in this industry purchase shoes from manufacturers and resell them to retailers with minimal or no further development or processing. Most wholesalers in this industry undertake sales and administrative activities, such as establishing relationships with manufacturers and retailers.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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