Retail Industry, Retail Sector, Retail Trade
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The retail industry is responsible for the distribution of finished products to the public. The retail sector comprises of general retailers (managed by individuals/families), departmental stores, specialty stores and discount stores.
The activities of the retail industry can be broadly classified into:
Personal goods store retailing
The retail industry is responsible for the distribution of finished products to the public. The retail sector comprises of general retailers (managed by individuals/families), departmental stores, specialty stores and discount stores.
The activities of the retail industry can be broadly classified into:
Personal goods store retailing
- Hard goods: This covers deals in goods such as electronics, electrical appliances, furniture and sporting goods.
- Soft goods: This includes apparel retailing.
Non-store retailing
This includes infomercials, catalogue sales, vending machines and ecommerce.
Food retailing (restaurants)
Automotive services and retailing
Table of Contents
Retail Industry: History
The retail industry emerged in the US in the eighteenth century, restricted to general stores. Specialty stores were developed only in those areas that had a population of above 5,000. Supermarkets flourished in the US and Canada with the growth of suburbs after World War II. The modern retail industry is booming across the world. Revenues from retail sales in the US alone stood at $4.48 trillion in 2007, according to a report by the US Census Bureau.
Retail Industry: Demand and Supply Drivers
The major demand drivers of the retail industry are:
- Interest rates
- Population
- Employment
- Personal disposable income
- Individual debt
The supply drivers include:
- Competitors in the industry
- Size of the market
- Cost of the factors of production
Retail Industry: Major Players
Of the world’s top ten retail companies in terms of total sales, six are American. Combined sales of the top ten companies, computed by Delloite, were $978.5 billion in 2007. Major retail giants include Wal-Mart, Target, Home Depot and Tesco.
Retail Industry: Statistics
The total sales from store retailers stood at €108,449.8 million in 2007 and the sales value of non-store retailers was €469.9 million. The percent composition of store and non-store retailers in 2007 was:
Store Retailers Non-Store Retailers Supermarkets 32.83 Vending 26.60 Small grocery retailers 24.46 Internet retailing 25.93 Hypermarkets 19.09 Home shopping 24.04 Food/beverage/tobacco specialists 15.68 Direct selling 23.43 Discounters 7.57 Others 0.36 Total 100 Total 100
Source: World Retail Data and Statistics 2008/2009
The retail sector is vital to the world economy, as it provides large scale employment to skilled and unskilled labor, minors and casual and part-time workers. Employment in the retail sector in the US and Europe surpassed 32 million in 2007.
