RETAILOBSERVER.COM JULY 2025
6
www.hpba.org
Moe Lastfogel
moe@retailobserver.com
Moe's Musings Views
Happy Retailing,
T
he retail industry is the second largest industry in the U.S. —
responsible for approximately 26% of all US employment according
to NRF — with over $7.2 trillion in sales annually.
Although the vast majority of all retail stores in the U.S. (approximately 90%)
are single-store businesses, these single-store businesses account for
substantially less than half of all retail sales. Thus, the majority of the revenue
in the retail industry is generated by companies that run retail chains.
In the past ten years, the Internet has changed the landscape of the retail
industry. The Internet has enabled consumers to shop for and purchase goods
online from the comfort of their home. E-commerce has added new dimensions
to traditional retailers, as nearly every major company in the retail industry sells
products through their own website. E-commerce currently represents
approximately 16.2% of total retail industry revenue ($1.2 trillion annually), a
number that has steadily grown in past years. As younger, internet-savvy
customers mature and internet usage becomes more widespread over time
among consumers of all ages, e-commerce will become increasingly relevant.
Off-price retailers purchase retail merchandise directly from suppliers,
taking advantage of manufacture overruns and cancelled orders to acquire
retail goods at an opportunistic discount. They also utilize "pack away" items
purchased at a discount at the end of a season, then hold in inventory until the
next appropriate season for sale. The off-price retail sector as a whole is
growing faster than most other retail segments, with a CAGR compounded
annual growth rate greater than 2.2% over the past five years.
B-stock retailing is another avenue for revenue. B-stock is a unit that was
used as a demo unit/ or display model normally by the manufacturer, who then
sells it to the retail stores at a lower price, who then sells it to the public for a
lower price. Products that are often not new, but could be in first class
condition, and/or that have been returned opened but not damaged are usually
sold on a first come, first serve basis.
No matter what kind of retailer you are, there are many possible ways to
retail as long as they make dollars and sense.
RETAIL = $
+
¢
(DOLLARS & SENSE)
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