Monday, 15 February 2016

Retail Industry Analysis- 2016 Cost and Revenue Trends

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 d├ęcor 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.

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