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Homeshopping in the US

United States homeshopping market: Declining to $76 billion industry by 2017

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2014-02-25 20:48:04 - Homeshopping in the US - a new market research report on

CVS Caremark, since its acquisition of pharmacy benefit manager Caremark in 2007, has been the leading retailer in the United States homeshopping market, and held a 21% share of value sales in 2012, thanks to its mail order pharmacy business. Several other major players also operate in mail order pharmacy, and the rest of the homeshopping channel is highly fragmented. QVC, at 3%, was the second leading retailer by value sales, maintaining a relatively stable share over the years.

The 2012 decrease of 4% represented a steeper decline than the CAGR for the review period. Sales improved at some of the largest homeshopping retailers, such as CVS Caremark or HSN, but smaller players continued to experience stagnant or declining sales. However,



it must be noted that these retailers operate on different homeshopping models. Many consumers in the US are mandated or encouraged by their health care plans to purchase prescription drugs via mail, while homeshopping retailers, such as HSN, offer discretionary items via catalogues and TV. Catalogues can provide inspiration and impetus to purchase even while shoppers make their final purchases via the internet, and as such are used more frequently as marketing tools, many with seasonal editions or magazine look book-type aesthetics.

Homeshopping is expected to decline at a CAGR of 5% in constant value terms over the forecast period. Catalogue and TV shopping will continue to lose sales to internet retailing, although this trend will be mitigated by many retailers having a presence in both channels, and TV shopping will outperform catalogues thanks to its higher element of interactivity.

Key Headlines

- Homeshopping sales decline 4% in 2012 to US$98 billion
- Homeshopping continues to lose sales to internet retailing in 2012
- Home improvement and gardening products saw significant growth at 5% in 2012
- CVS Caremark remains the leading homeshopping retailer thanks to its CVS ProCare Mail Service prescription drug mail order programme
- Homeshopping is expected to decline at a CAGR of 5% over the forecast period to reach US$76 billion by 2017

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