Industry Introduction
The United States retail is one of the biggest revenue generating industries contributing significantly to the Country’s economy. According to the National Retail Federation (NRF), the industry generated total revenue of USD 3 trillion in 2012 contributing to around 20 percent to the United States GDP. The industry has been quite consistent in maintaining its share in the US economy with a slight dip in the year 2009. The industry is highly diversified including Office Supplies, Stationary, & Gift Stores, Department Stores, Grocery Stores and such like. The industry provides employment to more than 12 million people in the country making it one of the significant industries in the country out of which the grocery store segment contributing most to the employment. This industry has also marked a recent employment gain in August 2013 wherein there was an addition of 43,600 jobs in the industry as per NRF. The major contributor in the retail sales is the Sporting goods, hobby, book, & music stores followed by furniture and home furnishings stores.
Current Scenario
In the year 2013, the retail sale is rising by each month with sales recorded at USD 261.13 billion as of September, 2013. Total US retail sales, a measure of the retail sector; increased 4.3 percent in the first eight months of 2013 compared to the same period in 2012.The industry has gained momentum during mid of the current year with increase in purchases by 0.4 percent by the American households. US tourism spending on shopping, which impacts retail sector revenues, increased 2.2 percent in the first quarter of 2013 compared to the same period in 2012. According to a recent report, out of 13 major categories in retail, 9 segments had a positive growth. The electronics segment had a heads up by 0.7 percent in September, 2013. Good times for the grocery store and restaurants segments as both had a rise up by 0.9 percent in sales. However, the automobiles segment is experiencing a fluctuation in sales as it increased in the month of August but dropped by 2.2 percent in September. The United States retail market is dominated by retail chains like Wal-Mart, The Kroger Company, Costco, Walgreens and Home Depot. The Wal-Mart retail chain is by far the market leader in US retail industry and across the globe. For the past three years the net sales of the company has been on the rise. In 2013, the net sales of the company from the US market accounted for USD 264.186 billion which was 59.5 percent of the total sales of the company. The retail industry of United Nations is currently being influenced largely by online shopping. Online shopping has gained importance over the last six years and is expected to drive the growth of the industry in the next five years as well. The comfort of shopping at home with browsing through various products, comparing prices and features like delivery at doorstep and cash on delivery are the attractive take away of online shopping. The upcoming festive season of 2013 is also set to provide a healthy boost to the retail industry of the country.
Outlook
Though the industry will experience a slight slowdown in growth in the next five years due to decreased customer confidence, high unemployment and increased government regulations but the growth of the industry is inevitable. Also the industry is expected to continue with its healthy contribution to the GDP of the country. The growth drivers of the industry are presumably online shopping spree and the festive seasons which increase the purchases of the people.
