Retailing & Chain Stores Market Research

Get These Powerful Market Research,
Business Data and Analysis Tools:

A Representative List of Organizations that Have Used our Research and Products:

Plunkett Research Online Overview

Plunkett's Industry Almancs Overview

Business Analysis, Market Size and Industry Video

What data challenge can we help you solve today?

Country:*

Organization:*

Job Title:*

* I agree to receive emails containing information about services and offers from Plunkett Research, Ltd. I understand that I can unsubscribe at any time and that my information will not be shared with third-parties. Terms & Conditions

Printed Almanac and Ebook

Custom Research Projects

Testimonials

Your tool is very comprehensive and immensely useful. The vertical marketing tool is very helpful, for it assists us in that venue, as well as targeting customers’ competition for new sales…The comprehensive material is absolutely fabulous. I am very impressed, I have to say!

Tammy Dalton, National Account Manager, MCI, Tammy Dalton

We are especially trying to push Plunkett since all of our students have to do so much industry research and your interface is so easy to use.

St. John’s College, Library Services

I’m amazed at how much information is available and the various ways to access it. This will be a major resource for our serious job seekers.

Penn State University, Career Services

I really appreciate the depth you were able to get to so quickly (for our project). The team has looked through the material and are very happy with the data you pulled together.

Marketing Manager, Hilton Worldwide

Plunkett Research Online is an excellent resource…the database contains a wealth of useful data on sectors and companies, which is easy to search and well presented. Help and advice on how to conduct, export and save searches is available at all stages.

Penny Crossland, Editor, VIP Magazine

The more I get into the database, the happier I am that we’ll have it–REALLY happy!!! Between the quality and affordability of your product, its appeal to and value for our users, and the inestimably ethical and loyalty-guaranteeing conduct of your business, I will always have more than sufficient praises to sing for Plunkett Research.

Michael Oppenheim, Collections & Reference Services, UCLA

Plunkett Research Online provides a great ‘one stop shop’ for us to quickly come up to speed on major industries. It provides us with an overall analysis of the market, key statistics, and overviews of the major players in the industry in an online service that is fast, easy to navigate, and reliable.

Wendy Stotts, Manager, Carlson Companies-Information Center

We are especially trying to push Plunkett’s since all of our students have to do so much industry research and your interface is so easy to use.

Gary White, Business Materials Selector, Penn State University

Industry Overview
Industry Statistics
Top companies
Industry trends

Retailing & Chain Stores OVERVIEW

Retail, with nearly 15.0 million employees in America alone at the beginning of 2020 (about one out of 10 people in the workforce), is one of the largest industries in the world.
     Retail sales in the U.S.
    totaled an estimated $6.21 trillion (on a broad basis) during 2019, according to the U.S.
    Census Bureau, up about 3% for the year, and up dramatically from only $4.0 trillion during 2009.
     (Sales at stores selling general merchandise, apparel, furniture and specialty items, referred to as “GAFO,” totaled $1.30 trillion in 2019.
     GAFO is an important distinction.
     In contrast, retail sales of all types are considered to include automobiles, gasoline and restaurants.) Unfortunately, retailing was one of the industries hardest hit by the global Coronavirus pandemic.
     Customer traffic plummeted at most categories of retail stores that sell non-essential items such as fashion and jewelry.
     Nonetheless, a few categories saw soaring sales increases.
     In the U.S., for example, sales boomed at supermarkets, discount department stores such as Walmart and home improvement centers such as Home Depot.
     Consumer interests, needs and shopping habits changed dramatically.
     Consumers with internet access shifted much of their shopping to online methods.
     Households where people were lucky enough to keep their jobs and had money to spend were investing in goods that made working from home easier and sheltering at home more entertaining. Retailing, and its sister business sector of restaurants, saw millions of jobs disappear.
     Retail stores

¹ Video Tip

For our brief video introduction to the Retail industry, see www.plunkettresearch.com/video/retail.

Unfortunately, retailing was one of the industries hardest hit by the global Coronavirus pandemic. Customer traffic plummeted at most categories of retail stores that sell non-essential items such as fashion and jewelry. Nonetheless, a few categories saw soaring sales increases. In the U.S., for example, sales boomed at supermarkets, discount department stores such as Walmart and home improvement centers such as Home Depot. Consumer interests, needs and shopping habits changed dramatically. Consumers with internet access shifted much of their shopping to online methods. Households where people were lucky enough to keep their jobs and had money to spend were investing in goods that made working from home easier and sheltering at home more entertaining.

Retailing, and its sister business sector of restaurants, saw millions of jobs disappear. Retail stores cut 2.4 million jobs in the U.S. in early 2020, but had restored roughly 2 million of them by November. Restaurant employment fared much worse.

Meanwhile ecommerce sales soared. Much of this market share that has moved to ecommerce is a permanent shift. For further discussion, see “The Coronavirus’ Effect on the Retail Industry.”

Competition among retailers has been fierce in recent years, and it will only grow more intense in the near future. A massive shakeout of retail stores is underway as part of a retail restructuring—slower traffic at malls and shopping centers and more reliance on ecommerce. While roughly 17 major U.S. retailers took bankruptcy during 2019, including Payless and Charming Charlie, 2020’s total through mid-November was 29 major chains, including long-term department store giants JC Penney, Neiman Marcus, Stein Mart, Stage Stores and Lord & Taylor, as well as leading apparel sellers J. Crew and Brooks Brothers, plus home goods sellers Pier 1 and Sur La Table. While many bankrupt firms gained new investors and resumed business under lower overhead and less debt, some liquidated and closed shop entirely.

A retailer without a significant competitive advantage doesn’t stand a chance. Some consumers are using stores as showrooms where they can touch and feel the merchandise, and then making their purchases at lower costs online at sites like Amazon.com. Online selling at deep discounts is even making inroads into major consumer purchases such as jewelry. An online shopping event in China known as “Singles Day,” garnered $74 billion during one day in November 2020.

The Coronavirus gave an immense growth spurt to ecommerce on a worldwide basis. Analysts at eMarketer estimated worldwide ecommerce sales of $4,206 trillion in 2020, up from $3.535 trillion in 2019 and $2.928 trillion in 2018. (These revenues include products or services ordered using the internet, regardless of the method of payment or fulfillment, but exclude travel, event tickets, money transfers food services and gambling.)

On a U.S. basis, eMarketer estimates ecommerce for 2020 at $668.5 billion, up from $586.92 billion during 2019. (These numbers exclude travel and event tickets.)

Today, both retailers and their customers are much more conservative than they were in the recent past. Retailers of all types have been seeking creative ways to cut operating expenses. Methods range from reducing the size of stores, to lowering the employee count, to reducing inventory exposure.

Consumers worldwide are focused on seeking the best possible prices. This means that revenues have been strong at other outlets that are known for exceptionally low prices—provided that they also offer convenience and great service, such as easy returns. Elsewhere, many retailers, including department stores, are forced to offer special prices on a frequent basis.

Private-label items are generally popular, providing retailers with higher profit margins than they see on branded merchandise. Consumers are enthusiastic buyers of private-label (sometimes called store-label) merchandise, recognizing good quality and good prices.

In emerging nations, the development of a robust retail sector (and related, vital supply chains) can require many years. However, ecommerce is growing so rapidly in many emerging markets, that the importance of store-front retailing will be diminished.

In China, many of the world’s leading retail chains have opened large numbers of stores, and new malls have been developed at a rapid clip, even in remote cities. This retail trend in China includes middle-of-the-road chains such as Nike and Starbucks, automotive centers including car dealers and tire and accessory stores such as Goodyear, as well as the world’s top luxury retailers, including Chanel, Louis Vuitton and Fendi.

Worldwide, many retail businesses outside the luxury field have repositioned themselves as providers of high-value, reasonably-priced merchandise. The retail apparel industry has been extremely challenged by changing tastes and online competition. (As with most merchandise categories, Amazon.com is expanding rapidly in online apparel merchandising.) Many fashion-conscious women have become more conservative about the amount they are willing to spend on clothing.

Personal spending has shifted toward goods and services offering quality, durability, affordability and lasting value, with less focus on the purchase of trendy items for fashion’s sake. Going forward, consumers will spend their money more wisely while using debt more carefully. Successful manufacturers, home builders, services providers and retailers will embrace this trend. When consumers spend, they want to do so with the confidence that they are using their money in a smart way, and they often want to pay cash instead of using credit cards.

Plunkett’s Four Keys to Successful Retailing:

= A High Value-High Quality Product Selection: Depth of selection is less important than a reasonably-sized offering of products that the merchandiser has chosen because they consistently offer high value and quality.

= Very Competitive Prices: For most retail chains, the goal is to give the consumer confidence that the store faithfully delivers everyday low prices—meanwhile, managing the firm in a manner that provides a viable profit margin. (At the other end of the spectrum, true luxury stores often operate on a combination of unique styles and fashion, but nonetheless rely on frequent sale events to boost traffic.)

= Superior Service: In-store help, follow-up service, problem-solving, installation and repairs offered easily and quickly, along with the ability to make returns and exchanges must be part of the package, with an absolute minimum of inconvenience to the consumer.

= Seamless Integration of Bricks and Clicks: Successful firms integrate their online endeavors with their physical presence in a manner that provides the highest possible level of convenience to customers.

Great example: Costco

ü Reasonable product selection, including quality store brands as well as name brands that have good reputations. Costco succeeds by carrying a vastly smaller, carefully selected and priced merchandise selection than its competitor Walmart.

ü Consistent, everyday low prices.

ü An easy-to-find, always-staffed customer service desk. Also, rules about returns are generous and clear-cut.

ü An easy-to-use web site with in-depth customer service information. When desired, customers may order merchandise online but return it to a store. Large items, upon request, can be picked up at the customer’s home for return.