What is the Retail Industry?:
The retail industry is a sector of the economy that is comprised of individuals and companies engaged in the selling of finished products to end users in the general public.
In 2009 the retail industry is figuring prominently in the U.S. economic recession, and is plagued by bankruptcies, store closures, and layoffs.
- 2009 Retail Store Closings
- Retail Industry Job Cuts and Layoffs Tally
- Chapter 11 Bankruptcy in the Retail Industry
Size of the US Retail Industry:
According to the U.S. Census Bureau, the total sales for the U.S. Retail Industry in 2007 (including food service and automotive) was $4.48 trillion. Total sales for the U.S. retail industry declined just 0.1% overall in 2008 according to the Census Bureau, to $4.475 trillion. Retail industry sales declined each of the last six months of 2008.
- December, 2008 Same Store Sales Figures
- January, 2009 Same Store Sales Figures
- February, 2009 Same Store Sales Figures
The Global Retail Industry:
Of the world’s 10 largest retail companies, six are from the US and four are from Europe. These top ten had combined sales of $978.5 billion in 2007, according to international consulting group, Deloitte.
Retailing is a primary driver of the global economy. To maintain the highest level of profitability, retailers are establishing a presence in fertile foreign markets. Retail organizations now view their potential market share to include worldwide consumers, not just customers in their home country.
- Top Retailers by Country
- Global Flagship Stores of the World's Largest Retailers
- Retailing, Iceland Style
The U.S. Retail Industry:
Ten of the top 20, and 21 of the top 50 retail organizations in the world were U.S. based companies, according to the Deloitte report. According to Fortune Magazine's 2008 "Global 500" list, 28 of the largest companies of any type in the world are U.S. based retail industry businesses. Measured solely by revenue numbers, the U.S. is the undisputed leader of the retail industry.
- 2009 Retail News Analysis
- Retail Industry CEO Compensation List
- Marketing Strategies of Top U.S. Retailers
Retail Employment, Jobs and Careers:
According to the US Department of Labor, Nearly 15.5 million people worked in the US Retail Industry in Q4 2007. That number has dropped to 15.3 million as of May, 2008.
- The Best Retail Industry Jobs and Careers
- Where to Get Started in a Retail Career
- Career Path to Retail CEO
Types of Businesses in the Retail Industry:
Generally, any business that sells finished merchandise to an end user is considered to be part of the retail industry. Sales figures and economic data is sometimes reported separately for restaurants and automotive-related businesses, but by definition they are considered to be members of the retail industry as well.
- Retail Convenience Stores: ExxonMobil Can't Make a Profit
- Retail Pharmacies: Losing Lawsuits and Losing Trust
- Discount Department Stores: The Retail American Dream is Still On Target
Two Types of Retailers in the Industry:
Store Retailers – Those engaged in the sale of products from physical locations which warehouse and display merchandise with the intent of attracting customers to make purchases on site.
Non-Store Retailers – Those engaged in the sale of products using marketing methods which do not include a physical location. Examples of non-store retailing include:
- Infomercials
- Direct Response television advertising
- Catalogue Sales
- In-Home Demonstrations
- Vending Machines
- E-commerce
- Multi-Level Marketing
Retail Industry Trends:
Cutbacks, layoffs, closings and bankruptcy are the hottest retail trends in 2008.
Green products and services, green facilities, and green activism are being heavily publicized by U.S. retailers, and strongly supported by U.S. consumers.
Integrating internet resources with brick and mortar retailing is a necessary trend for retailers who want to be competitive with younger demographics.
Since 2008 is a U.S. presidential election year, active political involvement was also a hot trend in retailing.
- Which Retailer Supports Which Candidate?
- Kohl's is Green & Kohl's Has Green
- Can YouTube Help Retailers?
Retail Industry Outlook:
As was predicted in the Deloitte report, “2008 Industry Outlook: A Look Around the Corner,” U.S. retailing is struggling due to the housing market crash, the financial meltdown, high gas prices, and unemployment.
The report recommends that retailers focus on these strategies in order to survive and thrive in 2008:
- Lean inventories and strong cash flow
- Lower payroll
- Increase share of wallet with existing customers
- Improve the customer experience and customer loyalty
- Use multichannel shopping (in-store, kiosk, online)
- Reintroduce coupons
- Create private label brands
U.S. Retail Industry Recession:
Although still under debate, most economists are earmarking December 2007 as the official beginning of a massive global retail recession. In the retail industry, the recession is causing record-breaking declines in sales, inventories, and consumer confidence, and stock prices. Experts are estimating the recessionary conditions will last from 18 months to 11 years.
