The Analysis of U.S Retail Industry Development

Topics: Retailing, Supermarket, Online shopping Pages: 15 (4921 words) Published: February 17, 2013
The analysis of U.S retail industry development

What is the retail industry

Retail is the sale of goods and services from individuals or businesses to the end user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers or directly through a wholesaler, and then sells smaller quantities to the consumer for a profit. Retailing involves a direct interface with the customer and the coordination of business activities from end to end-right from the concept or design stage of a product or offering, to its delivery and post-delivery service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today The growth of retail industry

U.S. retail industry sales growth will shrink to 3.4 percent this year, hampered by the lingering housing slump, a trade group forecast. The economy is not growing at the pace we would hope. Before, Consumers are finding a way to get out there and spend. But the consumers are different today. They are much more focused on value. A retailer can spend years rolling out a brand in the largest U.S. markets and more years penetrating smaller markets before looking overseas. Today’s globalization makes moving internationally sooner to become a much more attractive opportunity. Retailers call global expansion a key source of revenue and a necessity, not an option, for them. They also see the growth of middle class consumers around the globe as a key driver of these international opportunities. The importance of retail industry

Today, retail is one of the biggest employers in the world and a large portion of the world economy. The role of retail industry is to perform retailing functions efficiently than wholesalers. It provides the long term relationship with the consumers. They also provide information about competitor’s activities relating to product, price and promotion. It also offers varieties of services such as delivery, installation, repair, maintenance, and supply of spare parts. The Retail industry has high percentage in USA marketing. Of the World’s 10 largest retail companies in the world, five of them are from the US and five are from Europe. Retail sales are an important indicator because consumer spending drives much of our economy. The basic motive of these retail industries is to satisfy the consumers and fulfill their needs and demands, increasing the overall profits of the company.


The aim of this thesis is to understand the growth of retail industry in US. The challenge for retail industry and ways to overcome it
1. Economic environment
2. Information technology
3. Population and truism
4. Employment
5. Cost

International expansion difficulties
International trades are irresistibly sweeping all of the countries. With the slow recovery of U.S. economy and the negative impacts of European debt crisis, the developing world offers great markets and opportunities for creating fortune. Many companies, such as Pepsi, Apple, General Electric, followed this trend. They expanded their business into developing countries and succeeded in various ways. However, in contrast to other industries, grocery retail is still dominated by local players in most countries. International players performed poorly even in the largest retail markets. Every grocery retailer that has explored overseas has failed as often as it has succeeded. Most of them have very prudent attitude to venture other countries. For example, Walmart has succeeded in Canada and Mexico, but it had to pull out of Germany and South Korea. JC Penney, Carrefour, and Home Depot have also tried to enter the Chilean retail market but have failed due to stiff local competition and the inability to steal their extremely loyal customers. Why does retail industry faces...
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