Business Facilities - May 2008 - (Page 24)

LOCATIONS FOR THE RETAIL INDUSTRY Retail Set to Ride Out A Recession Despite a shaky economic outlook, the U.S. retail industry relies on its chain stores, online sales, and shopaholics to reinforce its big business status. By Tony Balacco R etail is the second largest industry in the United States, both in number of establishments and employees. The $4.5 trillion industry accounts for about 12.4% of all U.S. business establishments. Single-store businesses account for more than 95% of all U.S. retailers, but generate less than 50% of all retail store sales; not surprisingly, chain stores reign supreme in amassing total revenue. The retail industry exists in many formats—from boutiques to national department stores to the online marketplace. In addition, specialty shops, discount warehouses, mail-order catalogs, independent stores, chain restaurants, pharmacies, supermarkets, and various other outlets comprise the 1.6 million retail establishments in the United States. More than 24 million employees, or about one in five American workers, pay their bills thanks to jobs in the retail sector. Even with all of the chatter about a U.S. economic recession, the National Retail Federation (NRF) released its industry forecast in January and predicted a 3.5% increase in the retail sales industry in 2008. Experts expected a sluggish start to the year, but are hopeful that the second half of 2008 will provide a much-needed rebound. (The federal government’s economic stimulus program may well give the retail industry the jolt it needs.) NRF expects industry sales to increase by 3.8% in the second half as economic conditions improve in the third and fourth quarters. So far, NRF predictions have been relatively accurate. Retail did struggle in February, dropping 0.6% from the previous month, according to U.S. Department of Commerce data, but this dip is not atypical. Consumers tend to keep their wallets in their pockets in February to recover from holiday gift-giving and post-holiday A S P E C I A L A D V E RT I S I N G S E C T I O N O F B U S I N E S S FA C I L I T I E S 24 PHOTO CREDIT: STOCK.XCHNG

Table of Contents Feed for the Digital Edition of Business Facilities - May 2008

Business Facilities - May 2008 Contents First Word Snapshots The UK's Most Lucrative Locations, Pound for Pound Economic Development in a Flash Corporate Moves: Massachusetts Florida: A Ripe Climate for Innovation Innovating Big in Rhode IIsland Retail Set to Ride Out a Recession Corporate Moves: New Jersey South Carolina: A Sweet Spot in the Southeast Endless Opportunities in North Carolina Economic Awakening in the Mohawk Valley Metro Spotlight: Alexandria, LA Where Call Centers Call Home Texas Receives First Business Facilities State of the Year Award Advertiser Index Inside Livexchange

Business Facilities - May 2008

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