The Retail Industry

The retail industry is concerned with the sale of products to final consumers whereby
retailers buy goods in bulk and sell them in small quantities. Retailing involves selling goods
such as electronics, furniture, clothing, food, grocery, among others from a single point of
purchase. The points of purchase may include online shopping websites, brick-and-mortar
retail stores, or through mobile phone applications. According to Kotler (2006), retailing is
concerned with all activities related to the sale of goods and services to the final consumer for
personal use. Barry and Joel (2004) observe that retailing is the last phase within the
distribution process whereby consumers buy goods and services for personal use or family.
According to Plunkett (2008), the retail industry is one of the largest employers in the
world since millions of employees are either directly or indirectly employed within the
industry. For instance, in the US more than 15 million employees work within the retail
industry making it a major contributor to the global economy in general. Fares (2019)
observes that sales within the US retail industry are expected to experience an increase of
between 3.8 and 4.4 percent to be above 3.8 trillion US dollars in 2019 by the National Retail
Federation (NRF). On the other and, the retail industry in the UK accounts for over 19
percent of the employees in the private sector and contributes to more than 33 percent of the
turnover made by all industries with the country (Omar & Fraser, 2010). According to
Carpenter (2019), some of the major global players within the retail industry include Wal-
Mart Stores Inc., which is the largest retail store in the world with more than 11, 400 stores
globally that generated a revenue of more than 485.7 billion US dollars in 2015 for the
company whose market capitalization in 2015 was around $194 billion. Another major player
is Costco Wholesale Corporation, which is a warehouse retail chain with business operations
in more than ten countries globally, Kroger Company that runs supermarkets and multi-
departmental stores, as well as Tesco PLC, which is the largest retailer within the UK and

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whose revenues in 2015 were over 103.3 billion US dollars (Carpenter, 2019). The retail
industry has experienced various structural changes especially due to technological
advancements including the use of the internet in conducting retail business operations
including buying and making payments, as well as using technology within various processes
in the retail industry. These changes include the use of artificial intelligence within the retail
industry in improving consumers’ shopping experience as well as in providing useful insights
on consumer behaviour.

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References

Barry, B., & Joel, E. R. (2004). Retail Management: A Strategic Approach. New Delhi:
Prentice Hall of India Privalte Limited.
Carpenter, J. W. (2019, May 16). The World’s Top 10 Retailers. Retrieved from Investopedia:
https://www.investopedia.com/articles/markets/122415/worlds-top-10-retailers-wmt-
cost.asp
Fares, M. (2019, February 5). U.S. retail sales expected to top $3.8 trillion in 2019: NRF.
Retrieved from Reuters,com: https://www.reuters.com/article/us-usa-retail-outlook/u-
s-retail-sales-expected-to-top-3-8-trillion-in-2019-nrf-idUSKCN1PU1YM
Kotler, P. (2006). “Marketing Management”. New Delhi: Prentice Hall of India.
Omar, O. E., & Fraser, P. (2010). The Role of small amd medium enterprise retailing in
Britain. University of Hertfordshire Research Archive, 100-102.
Plunkett, J. W. (2008). Plunkett’s Retail Industry Almanac 2009: The Only Comprehensive
Guide to the Retail Industry. Houston: Plunkett Research, Ltd.