July 14, 2024
Taxable Retail Market

Taxable Retail Market Primed for Growth Driven by eCommerce Adoption and Convenience-Seeking Customers

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:

The taxable retail market comprises physical and online stores that sell taxable goods including general merchandise, food and beverage, health and personal care items. Products offered within this market cater to basic consumer needs. Major retailers like Walmart, Amazon and Target dominate the market through their expansive store networks and eCommerce platforms. These retailers attract customers through their wide product assortments and competitive pricing.

Market Dynamics:

Rising adoption of eCommerce is a key driver propelling growth of the taxable retail market. The ease and convenience of online shopping has encouraged more customers to make purchases via retailer websites and apps. This has significantly boosted sales for major online retailers. Additionally, changing consumer preferences toward convenience and one-stop shopping is benefiting larger brick-and-mortar stores that offer a wide range of products under one roof. Stores like Walmart and Target fulfill the daily shopping needs of customers efficiently. The growing emphasis on convenience and selection has driven some customers away from specialty retail stores toward mass merchants.

Segment Analysis

The taxable retail market is segmented into food and beverage, health and beauty care, clothing, footwear and accessories, consumer electronics and home appliances, sports and leisure and others. The food and beverage segment dominates the market and accounts for over 30% of the total share majorly due to rising demand for daily consumable and non-perishable packaged foods.

PEST Analysis

Political: The political landscape plays an important role in regulating the retail Taxable Retail Market through various laws and taxation policies.
Economic: The strong economic growth and rising disposable incomes are fueling the growth of organized retail sector in developed and developing nations.
Social: Evolving customer preferences towards convenience products and evolving lifestyles are boosting the growth of online and organized retail channels.
Technological: Advancements in digital technologies like AI and IoT are enabling omnichannel retailing and enhancing customer experience.

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 demand for convenience products and adoption of omnichannel strategies by retailers. The US dominates the market owing to strong economic landscape and accounts for over 25% share of the total market. The food and beverage segment accounts for a major share due to rising demand for daily consumable and packaged food items. 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. Walmart dominates with over 15% market share due to wide product assortment and extensive geographical reach.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it