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Camera & Photographic Supplies Stores
First Research, Feb 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US camera and photographic supplies retail industry includes about 800 firms with 2,000 locations and combined annual revenue of about $4 billion. Major companies include Ritz Camera & Image, Calumet Photographic, and Samy's Camera. The industry is concentrated: the 50 largest companies hold more than 80 percent of the market.
COMPETITIVE LANDSCAPE
Demand depends on consumer income. Profitability of individual companies is linked to marketing and efficiency of operations. Large companies can have economies of scale in purchasing and operations. Small companies can compete successfully by offering superior service.
Major competitors are big-box retailers, like Wal-Mart and Target, and electronic superstores, such as Best Buy. Photo kiosks and mini-labs are also found in many major drugstore chains. Digital photography has had a major impact on the industry. The combination of more competitors and consumers' new habits has hurt many camera and photo supply stores. For example, Ritz Camera & Image had more than 900 stores at its peak, but today has about 300 stores in the US.
PRODUCTS, OPERATIONS & TECHNOLOGY
Sales of photographic equipment and supplies account for about 70 percent of industry revenue. Stores also offer repair services and sell related items like picture frames and albums.
A typical store occupies about 3,000 to 5,000 square feet and stocks a few thousand items, which are distributed from central warehouses of big companies. Smaller companies buy from distributors or directly from manufacturers.
Some camera stores have photofinishing mini-labs or kiosks....
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