SIC 5949 Sewing, Needlework, and Piece Goods Stores

Encyclopedia of American Industries | 2005 | Copyright

SIC 5949
SEWING, NEEDLEWORK, AND PIECE GOODS STORES

This category includes establishments primarily engaged in the retail sale of sewing supplies, fabrics, patterns, yarn, and other needlework accessories.

NAICS Code(s)

451130 (Sewing, Needlework, and Piece Goods Stores)

Industry Snapshot

Although this industry was dominated by a few large national chains, hundreds of small shops were scattered throughout the country. Because many of these small businesses were privately owned, the size of the industry was difficult to determine. In 1999, the two largest companies in this sector, Jo-Ann Stores, Inc. and Hancock Fabrics, Inc., generated approximately $1.76 billion in sales—one-fourth of industry totals.

An increase in the popularity of arts and crafts and a surge in home decorating prompted renewed growth in the sewing, needlework, and piece goods industry during the 1990s. Although the industry demonstrated enviable vitality, competition was intense. The attractive growth rate encouraged new entrants to the industry and convinced discount retailers to devote more resources to craft items. Retailers in this industry also competed with some hobby retailers classified in SIC 5945: Hobby, Toys, and Game Shops, that carried craft supplies such as yarn and fabric.

As the industry emerged from the mid-1990s, the business environment was changing. Small shops were experiencing increasing competitive pressure from the larger craft/fabric super stores. Consumers, moreover, were attracted to the enormous variety offered by such stores. Consequently, several smaller chains were acquired by bigger firms during this period. Consolidation was typical as many large fabric chains closed small shops and operated fewer but more expansive stores.

In the late 1990s, many firms reported increased profits with fewer but larger outlets. Significantly expanded inventories and retailers' emphasis on home decorating fabrics added a much-needed boost to the lackluster sales figures of earlier years. In 1997, the 6,590 establishments in this industry totaled $6.6 billion in sales and employed 45,351 people.

Organization and Structure

Since all the stores in this industry carried limited product lines, albeit deep selection within those product lines, they were classified as specialty retailers. Within the broad...

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