The retail
sector in the United States is a trillion dollar industry, encompassing
revenues from auto dealers, vending machines, internet outlets, convenience
stores, apparels, and a lot more. The industry itself caters fifteen million
jobs. The year 2016 will bring a large financial influx reflecting higher
spending limit by consumers, greater profits, insurance rates etc. According to
the retail market research reports drug & cosmetic stores contribute 10
percent sales, while vehicle dealers, food & beverage stores deliver 20 and
14 percent to the total sales, respectively.
Factors that Relate to Retail Industry
Economy
Personal income
and consumer trust are the main drivers to retail segment. It is coupled with
merchandising, large chains, supply chain management, and franchisees. As per
retail industry analysis, the average sales margin lies at 30 and 40 percent.
The margin drawn depends on production/supply volume, grocery stores, and other
factors.
1. Seasonality: Occasions often inspire
people to buy gifts, necessary and luxury items. Thus, retailers find the
holiday and season time best to achieve best return on investments. For e.g.
home décor shops make the most during winter and autumn when people are
generally investing in home improvements, while gift shops earn good during
Easter, Christmas, feasts etc.
2. Location: For retailers, location of
their store is also important to evaluate the success or failure. These days
internet presence is vital even for brick and mortar outlets, as found in
retail market research. If a store is in proximity of a customer, then it will
be better equipped in sales revenue than a far-off store.
3. Taxes and Regulations: One of the challenges and advantage that the retailers enjoy is the tax levy and benefits. For consumers tax is something they dread, but for a firm, it may bring in extra income, especially those dealing with tips, and service charge. According to retail market reports, government on timely basis keeps a check on retailers from stopping the misuse of regulations and tax services.
3. Taxes and Regulations: One of the challenges and advantage that the retailers enjoy is the tax levy and benefits. For consumers tax is something they dread, but for a firm, it may bring in extra income, especially those dealing with tips, and service charge. According to retail market reports, government on timely basis keeps a check on retailers from stopping the misuse of regulations and tax services.
