Everyone knows that Valentine's Day is the time to share and indulge in candy... and while it's a given that candies aren't the healthiest of food, our team at Creditsafe thought it might be fun to do a deep-dive into the health of the stores that are selling this most-wonderful candy to us!
It's worth noting that "candy stores" isn't officially an NAICS code. For this report, we're using companies that fall under this category 445292: Confectionery and Nut Stores and the term "candy stores" interchangeable.
Candy stores include 10,878 companies, employing approximately 238,000 people and generating approximately $44.6 billion in revenue over the past year.
It's also an industry that has lots of small players with approximately 88% of the companies being categorized by us as "micro" (less than $5m in revenue and less than 10 employees).
In aggregate, the risk indicators for these companies appear to be getting better over the past year, where we're seeing an increase in their average credit scores and credit limits, along with a decrease in their average DBT (days-beyond terms).
As with most industries, we're seeing larger companies in this space generally have higher credit scores and credit limits, as well as pay their bills slower than smaller companies.
While the industry as a whole has done quite well over the past year, the largest increases have been with large companies where we're seeing a 10.2% increase in their score, a 14.3% increase in their average credit limit and an 86.6% improvement in their DBT levels (i.e. they're paying their bills faster this year than last).
The vast majority of companies in this category fall into the moderate to very low risk categories.
As this category contains so many small companies, it's not surprising to see that the majority of the companies have a recommended credit limit of less than $50k.
If cashflow is an issue for your business, it's worth noting which of these companies are paying at an average of over 30 days beyond terms.
Over the past two years, we've seen 10 companies file for bankruptcy and a total of 1,592 legal filings by these "candy" retailers.
Interestingly, it's not a particularly litigious group of companies with 95% having no legal filings within the past 2 years.
Curious to see how your company compares to other candy stores?
Schedule a demo today and we'll happily walk you through your report and show you how your company compares to others in this industry.