Industry indicators show retailing future to be bright

Black Collegian, Apr 2001 by Snuggs, Thelma

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-andcarry 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, 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, 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."