Retail Sector

The US retail industry includes about 1 million outlets with combined annual revenue of $4 trillion. Major companies include Wal-Mart, Home Depot, Kroger, Costco, and Target. While large companies dominate some retail sectors (such as mass merchandisers and grocery stores), other sectors (such as auto dealers and convenience stores) are fragmented. Many specialty retailers are single-store operations.

The US retail industry includes auto dealers and Internet and catalog retailers and generally excludes food and drinking establishments, such as restaurants and bars.

COMPETITIVE LANDSCAPE

Personal income, consumer confidence, and interest rates drive demand. The profitability of individual companies depends on efficient supply chain management and effective merchandising and marketing. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by selling unique merchandise, providing superior customer service, offering a distinctive shopping experience, or serving a local market. Annual revenue per worker averages $250,000, but ranges from $600,000 for new car dealers to less than $200,000 for grocery stores.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major retail sectors include motor vehicles dealers (20 percent of sales); general merchandise and food and beverage stores (15 percent each); building material and garden supply stores and non-store retailers (7 percent and 5 percent respectively). Motor vehicles and parts dealers include new and used car dealers. General merchandise stores include department stores, discount department stores, warehouse clubs, and superstores. Food and beverage stores include grocery; specialty food; and beer, ...