Industry Indicators Show Retailing Future to be Bright by Thelma Snuggs, Ph.D.

Retailing is a vital, growing and important segment in our economy.  Over 1.4 million retail establishments accounted for $3 trillion in annual sales in the United States alone in 1999, according to the National Retail Federation. Retailing consists of the activities involved in getting merchandise into the hands of consumers at the right price and place.  Regardless of whether a firm sells to consumers in a store, through the mail, over the phone, through a television shopping network, door to door, in vending machines, at kiosks, or on the Internet, it is retailing. The National Retail Federation is the world’s largest retail association.  Its purpose is to protect and advance the interests of the retail industry. The most common types of retail establishments are as follows:

Department Store:  Perhaps one of the most familiar types of retailing operations. It is a departmentalized retail institution offering a large variety of hard and soft goods, including home furnishings, household linens and dry goods, and apparel and accessories for men, women and children.

Discounts/Mass Merchandiser:  A self-service store selling all kinds of merchandise at lower price margins than other retailers. Their key to success is price.  Such stores buy in large quantities and pass savings on to consumers.

Specialty Store: A retail store concentrating on a limited range of merchandise such as jewelry, books, men’s or women’s apparel, and accessories.

Warehouse Clubs/Superstore:  A self-service retailer with cash-and-carry checkout operations.  The main draw is national brands at low prices.  Membership may be required.

Wholesale Club:  A self-service retailer which offers nationally advertised brand name goods at wholesale prices to businesses and group members only.   These stores have a warehouse environment with little or no frills.

Factory Outlet:  There are two types of outlet retailers: those that use a factory-type location to sell clearance merchandise received from other retailers or manufacturers, and vendors who use a factory outlet store location to sell their own goods (excess stock, seconds, and returns, etc.) at sharply discounted prices.

Catalog:  A retailer that displays and sells merchandise through the mail.

Retailing and the United States Economy

Retailing is the service industry’s top job creator and the fastest growing employer, according to the National Retail Federation. Retailing created 3.3 million jobs between 1988 and 1998 --more than health services, social services, manufacturing, and the entire financial, insurance, and real estate sectors.  The retail industry currently employs over 18 million workers, or one in five Americans.   According to the U.S. Bureau of Labor Statistics, retail employment is expected to increase to 25 million workers by the year 2008.  This growth rate is higher than transportation, communication and utilities, manufacturing or finance, insurance, and real estate.  Since the beginning of the 1990’s, the retail sector has created 700,000 jobs, representing 13% of all new jobs in the United States.  At present, more jobs are provided in retailing than the entire U.S. manufacturing sector. Sales and earnings figures offer a glimpse of how well a retailer is doing in the industry.  It is also an indicator of the future economic health and prosperity of a company.

The Future of Retailing

The retail industry will continue to grow and expand. Retail giants will continue to dominate the industry. But there will always be opportunities for new and interesting retailers, for consumers will always have money and will always be looking for ways to spend it. Retailing offers exciting professional opportunities for African Americans. The industry has a need for executives and workers from a variety of academic backgrounds. Retail provides job flexibility and the opportunity for advancement.

Today’s retail industry is more than just shelving merchandise, itemizing inventory, and making sales. Are you aware of the many career opportunities in retailing? There are traditional paths associated with advancement within the retail industry: assistant manager, store manager, district manager, regional manager, buyer, merchandising manager, and director of store operations.  Retailing is unlike some occupations in that with a few years of experience, a store manager can supervise over 100 employees, oversee tens of thousands of square feet of a facility, and manage a budget of over a quarter of a million dollars. From marketing to real estate to Internet specialists, retailing seeks individuals who want a future. 

Kermit Crawford, Operations vice president for Walgreens, states "there are abundant job opportunities for African Americans in retailing. Retailers will make sure the labor force reflects the population in which they do business."  Jeffery Reeves, (left) vice president of the People Group, Sam's Club Division of Wal-Mart, desires to "dispel the myths held by many young African Americans that they must go through grunt work, get dirty, and go through a lot of mess to accomplish anything in retail." Vernon McNeal, (right) vice president of Fresh Operations for Sam's Club, believes there are "vast opportunities in retailing for African Americans, and they will continue to grow."  He states, "The two fastest growing segments of the population are Hispanics and African Americans.”

Retail job seekers should have good people skills, be flexible, be decisive, have good analytical skills, good written and verbal communication skills, and have a desire to win.  William S. Noakes, (right) who is senior vice president, Information Technology and Services, General Counsel, and Corporate Secretary for Meijer Inc., stresses the importance of being flexible.  His advice: “Assess where opportunities are, and don’t be afraid to seek out opportunities.  The day when you go to one company and stay to retirement is gone.” Numerous professional opportunities in retailing await African-American students, such as in human resources, information technology, e-commerce, visual design, real estate, telecommunication, private label design, product sourcing abroad, warehousing and distribution, finance and internal auditing, to name only a few.

Salary and Wages

Minimum wage jobs do exist in retail but increasingly are limited to small businesses. One large retailer with high market concentration in the U.S. reported in-store salaries, based upon store volume, ranging from $48,000 to $150,000 according to testimony given in October 2000 by a member of the National Retail Federation in New Jersey.  A specialty store in Washington D.C., with a number of suburban branches reported yearly salaries for sales associates between $17,000 and $24,000; assistant store managers between $28,800 to $45,900; and store managers between $35,300 and $66,000.  Positions above store manager had a salary range of up to $79,000 plus per year.   It was also reported that commissioned sales people with particular knowledge and experience earned six figure salaries in stores across the country.

Retail salaries are competitive with other industries and lead many areas of the service industry. A sample follows:

Store Merchandise Planner- This person communicates with the home office of a chain and the local store management. Earnings can range from $68,000 to $108,000 depending on experience.

Pharmacist at a drug store chain - Salary can range from $65,000 to $75,000 for those just out of pharmacy school, up to $80,000 for the pharmacy manager.  Note: Most drug store chains offer a scholarship/loan program that forgives one-third of the loan for each year that a pharmacist works with that company after graduation.

Supply Chain Specialist- This person is responsible for getting products from vendors to the stores so that store shelves remain fully stocked.  Salary range again varies with experience from $68,000 to $108,000.

The retail industry will continue to grow, and so will the demand for hard working motivated individuals.  It is a great industry that offers tremendous rewards for those who are willing to put forth the effort to succeed.  So what are you waiting for?  Look into the vast number of professional opportunities available to you in the exciting world of retailing.

Dr. Thelma Snuggs is an assistant professor of retailing at Purdue University.