Let us first define retailing as the exchange of money for goods and services. There is always someone in the market looking for something to buy, whether that something is a service or a tangible good, and there is always someone else who has, and is willing, to sell what the buyer is looking for. Retailing involves, then, much more than selling by such well-known stores as Wal-Mart, Sears, Target, JCPenney, etc. It involves every licensed transaction that you can imagine, from your local barbershop to your local record store. Retailing is the heartbeat of the economy, because without a smooth-functioning, licensed retail sector, our economy would, in fact, collapse. It is no wonder then that retailing is a multi-trillion dollar business and employs millions of people. It is also because retailing is so multi-faceted that it renders the subject difficult to talk about with any degree of clarity. But I will try to make some sense of this economic sector which surrounds us all and with which we interact everyday.

It order to discuss retailing in an orderly fashion, let us begin with the fact that retailers are separated into categories. Categories can be thought of as a group of related products which are sold by retailers which compete against each other. Let us take furniture as an example. There are many stores selling furniture-some are purely local, many are national chains. The goods sold by furniture stores are pretty much the same, however, varying only in quality and price. Furniture as a category, then, involves a number of competitors (firms), each trying to outsell the other. I am going to provide over several examples of retail categories below, and simultaneously, identify some of the leading firms in that category. As you read the list of these categories, realize that these are but a few of the many categories which exist, and each category needs people to work. If you are a college graduate, you are in great demand for the opportunities that exist beyond the entry-level job. It is wise to also remember that different writers define retail categories differently depending on what their purposes might be.

One of the most familiar of all retail categories is the department store. You undoubtedly have several in your hometown. When we speak of department stores, we think of such names as Sears, JCPenney, and depending upon where you live, such names as Kohls, Dillard’s, Burdines, Macy’s, Bloomingdale’s, Rich’s, Filene’s, Foley’s, Parisian, Saks, or Neiman Marcus. It is not possible to talk about a leader when discussing department stores because each is aimed at a particular market, usually based on the income level of the intended customers. Sears has traditionally marketed itself as a "family" store, while Saks has sought to attract affluent customers who can afford the high-price items it carries. It might be said, however, that Sears is considered the number two retailer (behind Wal-Mart) both in the country and in the world.

The discount store is relatively a newcomer, as far as being identified as a separate category. Mention discount stores and we immediately think of the big three: Wal-Mart, Kmart, and Target. Wal-Mart is the undisputed leader in this category and holds the distinction of being the largest retailer in the world. Kmart, among the oldest in the discount store category, has consistently done well and continues to enjoy a position near the top in this category. Target, a Division of Dayton-Hudson Stores, has done well since its inception and has become the top moneymaker for its parent company.

Supermarkets are such a pervasive part of our lives that we seldom think of them as "retailers." But that is just what they are. They retail food to customers in every community and represent an increasingly sophisticated business with very exciting opportunities. Think of supermarkets and we think, again depending on where you live, of such familiar names as Albertson’s, Food Lion, HEB, Kroger, Publix, Safeway, or Winn-Dixie. Among the leaders in this category are such venerable names as Kroger, Safeway, Albertson’s, and Winn-Dixie. Many supermarket chains are regionalized. That is they operate primarily in only one part of the country. Examples of this are HEB (Texas) and Publix (Florida). Nationally, the largest supermarkets are Kroger, Albertson’s and Safeway. The concept of "largest" can be misleading, however, because many large and profitable supermarkets dominate their local or regional markets to the extent that the industry leaders may not be present in that market at all.

Consumer electronics have become an important retail category as increasingly sophisticated microprocessors have made more and more electronic consumer goods available. Electronic goods as a retail category are associated primarily with personal or home-based entertainment goods. Such items as television sets, CD players, VCRs, and now, DVD players, consume an increasing part of personal and household expenditures. If computers for the home--whether desktops or laptops --are added to the list of consumer electronics, we have a category which has continued to increase in sales since its inception. In this category, we have such names as Circuit City, Best Buy, and Tandy. There is great diffusion in this category because the goods they sell tend to be sold by a variety of other retailers also. For example, while Circuit City sells televisions and computers, so do Wal-Mart and Sears.

Pharmaceutical Retailers

Pharmaceutical retailers, better known as drug stores, represent a growing category in the retail sector as the population of the United States continue to get older and as medical science produces more and more pharmaceuticals for every ailment or condition. Once this category consisted of family-owned businesses, but it is now almost an entirely chain-based enterprise. Among the premier names in this category are Walgreen’s, CVS and Rite-Aid. This short list does not consider that many since most pharmaceuticals are sold in other venues such as discount stores and supermarkets.

This is a somewhat mixed-bag category because it includes retail companies of many different types and which are aimed at a variety of markets. This category contains however, some of the most successful retailers in the country. Among the instantly recognizable names in this group are: The Gap, which includes Old Navy and Banana Republic; The Limited; Intimate Brands; Ann Taylor; Men’s Warehouse; Ross; and TJ Maxx. These primarily mall-based stores are practically household names and continue to perform excellently in most cases, year after year.

The different categories briefly discussed before provide a clue as to why it is difficult to categorize retailers meaningfully by size. National sales and earnings figures provide an indication, however. Below, I list some of the leaders in revenues and earnings in retailing. The figures for the most part are taken from Stores magazine, a publication of the National Retail Federation. The figures given are for 1998, the last year for which complete data are available. Looking at 1999 quarterly reports, the rankings have not changed significantly. It should be kept in mind that the figures given do not always include the recent entry of many traditional retailers in the use of the Internet as a sales channel. To the extent that such figures are reliably available, I have provided them separately. The top ten retailers for 1998 listed by Stores magazine in ranking order were:

Sales Earnings

1. Wal-Mart $137,634,000,000 $ 4, 430,000,000

2. Sears $41,322,000,000 $ 1, 088,000,000

3. Kmart $33,674,000,000 $ 518,000,000

4. Dayton Hudson $30,951,000,000 $ 935,000,000

5. JC Penney $30,678,000,000 $ 594,000,000

6. Home Depot $30,219,000,000 $ 1,614,000,000

7. Kroger $28,203,000,000 $ 411,657,000

8. Safeway $24,484,200,000 $ 806,700,000

9. Costco $24,269,877,000 $ 459,842,000

10. American Stores $19,866,725,000 $ 233,744,000

E-commerce is such a new phenomenon, that a good metric by which performance can be assessed, has not been completely developed. The September, 1999 issue of Stores magazine provides an indication of the trends in the industry. It should be noted however, that the e-commerce retail sector is very volatile and that the figures provided should be read with caution. The following retail figures are estimates through July, 1999 as measured by sales to customers on the Internet only. That is the figures given do not reflect sales which retailers may have made using catalogs or through bricks and mortar stores. The top five sites are listed:

1 eBay.com Auction venue $ 1.1 to 1.3 billion

2 Amazon.com Books/Media $ 1.0 to 1.1 billion

3 Dell.com Computers $ 500-600 million

4 Buy.com Computers/Media $ 350-400 million

5 OnSale.com Computers/software $ 300-350 million

The diverse retail categories previously cited and some of the industry leaders provide a glimpse of the variety of retailers, available work settings, and profitability one might enjoy in retailing. The question still remains, however, what kinds of jobs might one expect to find and are these good jobs?

That many people are employed by the retailing sector is a given. In fact, most individuals obtain their first jobs in some retail outlet. We are concerned here with the career jobs in retailing and those for which retailers are increasingly looking for college graduates to fill. These are the jobs, which normally cannot be performed by just "anyone," and require either a college degree or extensive training or experience. Four major job-types in retailing may be identified. They are management; which includes managing departments and functions within a store or managing the entire store; merchandising, which is a broad category that more often than not, includes buying or purchasing; distribution and logistics, which involves the movement of merchandise from distribution centers and manufacturing facilities to the retail outlets; and support functions within the company which include data processing, accounting, finance, marketing, advertising, human resources management, and other related functions needed to operate a profitable business. Increasingly now, we must begin to add another category of job types, that of the manager of online retailing. Selling goods on the Internet is perhaps the fastest growing segment of the retail market. The knowledge of how to best sell on the Internet goes beyond the mere knowledge of knowing how to manipulate software or program a computer.

For the college graduate, training programs of varying duration are required. Previous experience in retailing, especially internship experience, is an important consideration when being considered for a permanent job in any one of the job types. Each of the job types within retailing has its own "ladder," meaning there are ranks within the type in which the individual can progress to the top of that job type. Lateral moves are also possible. A person may begin his/her career in buying, but decide later that he/she prefers human resources. Once a basic understanding of the firm has been obtained, and some work experience in the firm accumulated, the move to a different job type is not difficult.

For sound business reasons, African Americans are in great demand in retailing. But often overlooked is the fact that, beyond "business-sociological" reasons, all firms need talent, and retail talent is not confined to skin color. In short, if you have ambition and are willing to work, there is a place for you in retailing. In view of this, a number of African Americans from a variety of firms have been interviewed to share their observations and concerns.

One of the first impressions received by this writer in conducting interviews with African Americans in retailing is that all had been in retailing a number of years and each had been with his/her present company a long time. The amount of time a person stays with a firm is usually one indicator of the degree of satisfaction with the company. And secondly, the amount of time spent in retailing is also a proxy for satisfaction with the kind of work being done. Several people featured in this article have been employed in retailing from six to over 20 years. Each occupies a position of status, authority, and influence. Each has professed a high degree of satisfaction with what he/she does and personal observations confirm this. When asked what is it about retailing that each found personally rewarding, the answers varied, but a careful reading suggests that retailing offers sufficient autonomy to permit individuals to be as ambitious as desired. Also mentioned frequently was that the variety of tasks involved is broad and provides an exciting environment in which to work. Wayne Terry, a senior corporate recruiter with HEB Grocery Company in San Antonio, TX, has worked for the company for 14 years and he emphasized the psychological rewards. " I started with the company right out of college and I have not regretted my decision once. I have had a variety of jobs with the company and the opportunity to grow with each one. I am in a position, which is not only personally fulfilling, but I know I can influence others. I really like what I do."

Addison Holmes, director of Internal Consulting and Auditing Services for The GAP, Inc., in San Francisco, CA, talked about the retail environment as a place to work. " Retailing is an environment which requires creativity. The amount of creativity you are permitted depends upon the company and the job you are doing, but retailers succeed to the extent that they have imaginative, creative people generating ideas and new and better ways to sell products. If you thrive in the kind of atmosphere where your ideas can matter, then retailing is the right environment for you. If you are a creative person, then retailing is the place for you."

Vanessa Brown, a cosmetics buyer with Dillard’s in St. Petersburg, FL, addressed the issue of pay. "Initial pay is comparable to, and often better than most entry-level positions in the service sector. The exciting thing about retailing is that you can realize pay growth very quickly and within a few years find that you are making salaries surpassing $50,000. Depending upon the company, store managers with a few years of experience usually make in excess of $100,000 per year. This is the part of retailing that students often don’t realize."

Sharon Robinson, a store manager with Target Stores in Sarasota, FL, states that retailing is a great choice for African Americans at this time. She has been in retail management for 17 years and has worked for Marshall’s and Sears, prior to assuming her present responsibilities with Target. "Most retailers are in great need for store managers because competition is becoming much keener than it used to be and most successful retailers are expanding. As our customer base becomes more diverse, we need diversity in people we have managing our stores." When asked what is it that she likes about her job, she was quick to answer: "Being a leader and having the chance to develop other people. That is one of the most rewarding things I do. My job requires that I spend a lot of time following up to see that the standards set are upheld. That is not only a teaching opportunity, but it is the time when you must show leadership. I love it!"

The opportunities available in retailing are often overlooked because of misconceptions about professional growth opportunities in the business. Yet the world’s economy is based on the selling of goods and services, which is what retailing is all about. The demand for college-trained retail managers continues to be great and the tremendous growth of retailing on the Internet has only increased the need for skilled, technologically smart retailers. Professional retailing requires the most skilled people available and in the final analysis is often very rewarding.

George R. Auzenne is the director of the Retail Management Program at Florida A&M University in Tallahassee, FL.