Retail Sector

Retail Sector

Brief Excerpt from Industry Overview Chapter:

Companies in this sector sell a wide range of products to consumers and businesses, from food and apparel to hardware, household goods, and office supplies. Major companies include Wal-Mart, Home Depot, Kroger, Costco, and Target (all based in the US), as well as Carrefour (France), Metro (Germany), Tesco (France), Schwarz Unternehmens Treuhand (Germany), and Aldi Einkauf (Germany).

The global retail industry generates about $15 trillion in annual revenue, according to the Global Powers of Retailing report from Deloitte and STORES Media. Many of the biggest US retailers are also major international players, with Wal-Mart ranking as the world's top retailer.

The US retail industry includes about 1 million outlets with combined annual revenue of about $5 trillion and is expected to see high growth in the next two years. Key industry drivers include interest rates, consumer spending habits, and commodity prices.

The US retail industry includes auto dealers and Internet and catalog retailers, but 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.

While large companies dominate some retail sectors (such as mass merchandisers and grocery stores), other sectors (such...