USA Retail

1. ―Study Of Retail Industry of
United States of America‖
Presented By: Group 2
Name Of Student Roll No.
Abhinav Agarwal 043003
Abhinav Mittal 043004
Deepali Agarwal 043019
Hitaishi Gupta 043026

2. Statistics
Capital Washington DC
GDP $14.59 trillion (2010)
GDP growth 3.0% (2010)
312,884,000 (3rd)
Population
2011 estimate
Area 9,826,675 km2

3. TOP US CITIES BY POPULATION
4/1/2010
US City population
estimate Size rank
2010
New York, N.Y. 8,175,133 1
Los Angeles, Calif. 3,792,621 2
Chicago, Ill. 2,695,598 3
Houston, Tex. 2,099,451 4
Philadelphia, Pa. 1,526,006 5
Phoenix, Ariz. 1,445,632 6
San Antonio, Tex. 1,327,407 7
San Diego, Calif. 1,307,402 8
Dallas, Tex. 1,197,816 9
San Jose, Calif. 945,942 10
Source: US Census Bureau

4. US RETAIL STATISTICS
Source:
In trillion WorldBank
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
US GDP 13.30 14.00 14.30 14.04 14.59 14.90 15.21 15.53 15.85 16.19
Growth Rate 5.26 2.14 -1.82 3.92 2.10 2.10 2.10 2.10 2.10
PFC 9.18 9.80 10.15 9.97 10.36 10.73 10.95 11.18 11.42 11.66
% of GDP 69.00 70.00 71.00 71.00 71.00 72.00 72.00 72.00 72.00 72.00
Retail Sales 3.40 3.54 3.62 3.41 3.61 3.75 3.89 4.04 4.19 4.35
% of PFC 37.08 36.12 35.66 34.26 34.86 34.95 35.53 36.12 36.72 37.34
Modern Retail 2.89 3.01 3.08 2.90 3.07 3.19 3.31 3.43 3.56 3.70
Traditional Retail 0.51 0.53 0.54 0.51 0.54 0.56 0.58 0.61 0.63 0.65
Source: World Bank (All figures in trillion Dollars)

5. GDP 2010: 14.59
trillion
Private
Consumption 2010: Public Spending: 2.9
10.36 trillion (71 % trillion (19.9 %)
of GDP)
Retail Sales 2010- Non- Retail Sales
3.61 trillion 2010: 6.75 trillion
Traditional Retail
Modern Retail 2010:
2010: 0.54 trillion
3.07 trillion (85 %)
(15 %)

6. US GDP IN COMPARISON WITH THE WORLD
GDP by country 2010: Source
World Bank
(in trillion dollers)
14.59
10.169
4.3 4.19
3.04 2.812
2.233
With 5 % of the world’s population , USA private consumption is 71 % of GDP.
On the other hand, with 20 % of the world’s population China consumes just 37
% of their GDP (10.169 trillion)

7. GDP, PFC & RETAIL SALES OVER YEARS
US GDP PFC Retail Sales
3.4 3.54 3.62 3.41 3.61 3.75
9.18 9.8 10.15 9.97 10.36 10.73
13.3 14 14.3 14.04 14.59 14.9
2006 2007 2008 2009 2010 2011
Private consumption and retail sales have increased over the years, however it dipped in 2009 due
to recession.

8. PERSONAL CONSUMPTION- GOODS VS SERVICES
Personal Consumption of goods has been decreasing over the years and that of services is
increasing over the years in US. Hence to satisfy customer needs, retailers will need to
incorporate services and experiences into their concepts.

9. PRIVATE CONSUMPTION
GDP 2010: 14.59
trillion
Private Consumption
2010: Public Spending: 2.9
10.36 trillion (71 % of trillion (19.9 %)
GDP)
Retail Sales 2010- Non- Retail Sales
3.61 trillion 2010: 6.75 trillion
Traditional Retail
Modern Retail 2010:
2010: 0.54 trillion (15
3.07 trillion (85 %)
%)
Housing forms the major part of consumer expenditure with a share of 34.4 %, followed by Transporatation
(16 %), followed by food (12.7%), and then personal insurance and pensions (11.2 %). This shows that
nearly 50 % of the total private expenditure comes from housing and transportation.

10. The above is like a short story of the recession. Americans are eating out less because they are largely
poorer. However, because of the housing bubble popping, families are paying less on housing. The
recession caused energy prices to crash from 2008 to 2009 but they are back up in 2010. Healthcare costs
have moved steadily up. In the end the middle class is still feeling the extreme pinch of this recession.

11. RETAIL SALES
GLOBAL RETAIL SALES US CONTRIBUTION TO TOTAL
TREND RETAIL SALES 2009
US
25%
Others
75%

12. The fastest
growth will take
place in
developing retail
markets, includi
ng the huge
markets of
China and India.
Retail issues in developed
markets around the globe
basically will be a mirror
image of issues confronted
by the U.S. economy—aging
populations, shrinking
share of retail spending and
increased pending on
healthcare.
Sources: National statistics offices, OECD and TNS Retail
Forward

13. RETAIL SALES
Furniture and Electronics Building mat.
GDP 2010: 14.59 home and appliance and garden
trillion furnishings stores , 2.78 equip. and
stores , 5.23 supplies
dealers, 6.47
Food services
and drinking
places , 13.03
Private Consumption
2010: Public Spending: 2.9
10.36 trillion (71 % of trillion (19.9 %) Non-store
GDP) retailers , 8.98
Food and
beverage
stores , 14.45
Retail Sales 2010- Non- Retail Sales General
3.61 trillion 2010: 6.75 trillion merchandise Health and
stores , 11.73 personal care
stores , 12.55
Sporting
goods, hobby,
Miscellaneous book, and Gasoline
store retailers music stores stations
Modern Retail 2010:
Traditional Retail , 5.59 , 16.89 Clothing and , 0.21
2010: 0.54 trillion (15 clothing
3.07 trillion (85 %)
%) access. stores
, 1.02
A major part of the retail sales comes from Sporting goods, hobby and music stores and thereafter Food
and beverages store (14.45% ) and food services and drinking places (13.03 %)

14. RETAIL SALES CATEGORY WISE 1992-2011
Sales of Sporting Goods/Hobbies is Sales of Electronic Appliances has been fluctuating over
decreasing over the years. the years . It has decreased in the past 2 decades.
Americans are probably not building new houses, hence
the furniture sales are decreasing over the years.

15. RETAIL SALES CATEGORY WISE 1992-2011
RETAIL CATEGORY WISE 1992-2011
Americans are spending more on food since 2008, because
Americans are spending less on Clothing over the years as a spending on basic necessities increased, when other
percentage of the total retail sales. spending was cut due to subprime crisis.

16. US Retail Sales 2009: Clothing stores
Jewelry, lug Other Men's
gage, and clothing clothing
leather stores stores
goods stores
8% 6%
14%
Women's
Shoe stores clothing
12% stores
26%
Clothing
Family
stores
clothing
74%
stores
60%

17. US Retail Sales 2010: Food and Beverage Stores
Food and Beverage Stores 2009 Grocery Stores 2009
Specialty food
Beer, wine, and Convienienc
stores
liquor stores e Stores
3%
7% 5%
Supermarket
s and other
grocery
Grocery stores stores
90% 95%
Source: us census.org

18. Grocery Market Share by Format
Fresh, Organic/Natural, 1.20 Millitary, 0.50% Other small
% grocery, 1.10%
Doller, 2.10%
Super Warehouse, 1.70%
Limited
Assortment, 3.20%
Drug, 4.50%
Superstore, 17.30%
Mass, 5.40%
Fod/Drug
Wholesale Club, 7.30% Combination, 11.50%
Convenience without
gas, 2.10%
Convenience with
gas, 13.30% Conventional
Supermarket, 8.30%
Supercenter, 20.70%
Source: Food Retailing in 21st Century, www.fmi.org

19. US Retail Sales 2010: Electronics and Appliances
Stores
Household
Computer and appliance stores
software stores 16%
20%
Radio, TV, and
other elect. stores
64%
Source: us census.org

20. Modern vs Traditional Retail
Traditional, 15
%
Modern, 85%
Indian unorganized retail is currently 93 % of the total sector and is expected to grow, where as US
unorganized retail is expected to stay constant at 15 %.

21. Top 10 Global Retailers
Name Country of Origin Country of 2009 Revenue($ 2009 Profit Margin
Operation billion)
Target US 1 $65.35 3.8%
The Home Depot US 5 $66.17 4.0%
Aldi Einkauf GmbH Germany 18 $67.7 n/a
& Co.
Costco Wholesale US 9 $71.42 1.5%
Corp.
The Kroger Co. US ! $76.7 0.1%
Schwarz Germany 25 $77.22 n/a
Unternehmens
Treuhand KG
Tesco UK 13 $90.43 4.1%
Metro AG Germany 33 $91 0.8%
Carrefour France 36 $122 0.5%
Walmart US 16 $404 3.6%
Out of the top ten global retailers, 5 retailers are from USA with total revenue of $682 billion in 2009. This
shows the strength of the US retailers across the world.

22. Share of Top 250 Retailers By region/Country 2009 Share of Top 250 sales By region/Country 2009
Latin Other Latin
America, 4% Europe, 11.90 America, 1.6
% %
US, 42.10%
US, 33.60%
U.K, 6.90%
Other
Europe, 18%
U.K, 6% Germany, 11.
60%
Germany, 7.6
0%
France, 5.20% Canada, 4%
France, 9.90%
Other Africa/Middle Other Canada, 2.40
Asia/Pacific, 5. East, 3.20% Asia/Pacific, 4. %
Japan, 12.80 Africa/Middle
60% % 70% Japan, 7.90% East, 1%
US retailers occupy a market share of 33.6% out of the total top 250 retailers in the world that means
1 out of every 3 top 250 retailers is from United States.
US retailers Sell 42.1 % of the total sales of the top 250 retailers across the globe which accounts for
2/5th of the total sales.
For these 84 US retailers in the Top 250 retailers list, 13.3% of their business comes from
foreign operations and rest 86.7 % of their business comes from US itself.
Source: Deloitte Global Retail Study 2011

23. TOP 250 RETAILERS- FMCG
Fast Moving
Consumer
Goods Percentage of US Retailers Sales in Top
250 FMCG retailers
Retail Sales($ Country of
Rank Company billions) Origin
1 Walmart 405 US Germany
19%
US
2 Carrfore 119 France 62%
UK
3 Tesco 90 UK 8%
4 Schwarz 77 Germany France
11%
5 Kroger 76 US
6 Costco 69 US
7 Aldi 67 Germany
8 Walgreens 63 US
9 Rewe 61 Germany
United States Constitute 62 % of the
total retail sales in FMCG category
amongst Top 250 retailers
10 CVS Caremark 55 US
Source: Deloitte Global Retail Study 2011

24. TOP 250 RETAILERS BY PRODUCT TYPE
TOP 250 RETAILERS- FASHION
Percentage of US Retailers Sales in Top 250 Fashion
Fashion Goods retailers
Germany
6%
Retail Sales($ Country of
Rank Company billions) Origin Sweden
8%
1 Macy's 23 US
Japan
2 TJX 20 US 9% US
59%
3 J.C Penny 17.5 US France
9%
4 Kohl's 17.1 US
5 Inditech 15 Spain Spain
9%
6 Gap 14 US
7 LVMH 13.7 France
Isetan
8 Mitsukoshi 13.5 Japan
9 H&M 13.2 Sweden United States Constitute 59 % of the
total retail sales in Fashion category
10 C&A Europe 8.8 Germany in Top 250 retailers
Source: Deloitte Global Retail Study 2011

25. TOP 250 RETAILERS BY PRODUCT TYPE
TOP 250 RETAILERS – HARDLINERS & LEISURE GOODS
Percentage of US Retailers Sales in Top 250
Hardlines & leisure goods Retailers Hardliners & Leisure Goods retailers
Retail Sales($ Country of UK
Rank Company billions) Origin 5%
France
1 Home Depot 66 US 11%
US
2 Best Buy 49.6 US Japan 67%
7%
3 Lowe's 47.2 US
Sweden
4 IKEA 29.1 Sweden 10%
5 Amazon.com 23.8 US
Yamada
6 Denki 21.7 Japan
7 PPR 18.7 France
8 Kingfisher 15.3 UK
9 Staples 14.6 US United States Constitute 67 % of the
total retail sales in Hardlines &
10 Groupe adeo 13.8 France Leisure Goods category in Top 250
retailers
Source: Deloitte Global Retail Study 2011

26. TOP 20 RETAILERS IN USA
2010 US Retail Sales($ Number of Market
Rank Company Headquaters billion) stores(2010) World wide retail Sales (in $000) share
1 Wal-Mart Bentonville, Ark. $307 4358 421 11.69
2 Kroger Cincinnati $78 3609 78 2.17
3 Target Minneapolis $65 1750 65 1.81
4 Walgreen Deerfield, Ill. $61 7456 63 1.75
The Home
5 Depot Atlanta $60 1966 68 1.89
6 Costco Issaquah, Wash $58 412 78 2.17
7 CVS Caremark Woonsocket, R.I $57 7217 57 1.58
8 Lowe's Mooresville, N.C. $48 1723 48 1.33
9 Best Buy Richfield, Minn. $37 1312 50 1.39
10 Sears Holdings Hoffman Estates, Ill. $35 3484 41 1.14
11 Safeway Pleasanton, Calif. $33 1475 38 1.06
12 SUPERVALU Eden Prairie, Minn. $31 2436 31 0.86
13 Rite Aid Camp Hill, Pa. $25 4750 25 0.69
14 Publix Lakeland, Fla. $25 1173 25 0.69
15 Macy's Cincinnati $24 852 25 0.69
16 Ahoid USA Washington, D.C. $23 751 56 1.56
17 McDonald's Oak Brook, Ill. $23 14027 69 1.92
Delhaize
18 America Salisbury, N.C 19 1627 27 0.75
19 Amazon.com Seattle, Wash. 18.5 na 32 0.89
Menomonee Falls,
20 Kohl's Wis. 18.4 1083 18 0.50
Source-http://www.stores.org/2011/Top-100-Retailers

27. TOP 20 RETAILERS IN US- MARKET SHARE
Wal-Mart, 11.69 Kroger, 2.17
Target, 1.81
Walgreen, 1.75
The Home Depot, 1.89
Costco, 2.17
CVS Caremark, 1.58
Lowe's, 1.33
Best Buy, 1.39
Sears Holdings, 1.14
Ahoid USA, 1.56
Others, 69.61
McDonald's, 1.92
Walmart despite having a turnover almost equal to the Indian retail Industry has a market share of only 11.7
% in USA, and McDonald’s has just 2 % of market share.
Source-http://www.stores.org/2011/Top-100-Retailers

28. FDI IN USA FDI IN RETAIL
FDI in retail has been fluctuating over the years, in the recent years from 2005 to 2008 , it increased at a
fast pace but declined thereafter due to sub prime crisis in 2009.

29. EMPLOYMENT BY U.S. AFFILIATES OF FOREIGN FIRMS BY
INDUSTRY, 2008
In 2008, foreign firms employed 489,000 employees in US retail sector.

30. LAWS AFFECTING RETAIL IN USA
Restrictions such as the ‗yarn forward‘ rule have severely undermined benefits that could otherwise be
reaped from recent free trade agreements and should not be repeated now that a major new agreement
is under negotiation. These restrictions make it difficult for retailers to use these agreements and thereby
provide American families with the products they need at prices they can afford. Removing these
restrictions would help promote new trade and investment, thereby creating U.S. jobs and export
opportunities while holding down prices for American consumers.
Not to Let Railroad Unions Strike- Retailers rely heavily on freight rail to move merchandise across
the country, especially during the holiday season, and that even a one-day strike at such a crucial time
would create a sustained backlog that could clog the transportation system for weeks. Other modes of
transportation would be unable to take over the extra volume, and the effects could potentially linger into
the spring selling season.
Credit Card Swipe Fee Reform - American businesses pay the highest swipe fees in the
world, impacting the price of everything they buy. Debit card reform cutting the fees roughly in half took
affect October 1, and people are now beginning to ask Congress to take the next step and address
credit card swipe fees. While debit swipe totalled about $20 billion a year before reform, credit card
swipe amounts to $30 billion a year and presents the opportunity for even larger savings for retailers and
their customers.

31. LAWS AFFECTING RETAIL IN USA
LAWS AFFECTING RETAIL IN USA
VAT - A federal tax on consumption will dampen consumer spending. Retailers will reduce
operations, closing stores and reducing employment. Some retailers will go out of business, especially
smaller retailers whose margins are slimmer so they will be forced to pass the entire burden of the tax
onto their customers.
Backdoor Card Check –National Retail Foundation (NRF) wants U.S. House of Representatives to
approve pending legislation that would block controversial moves by the National Labour Relations
Board (NLRB) to allow “ambush” union organizing elections and the formation of micro-unions, saying
that bill is needed to restore fairness and balance in labour negotiations. NRF believes that when a
union proposes organizing a workplace, employers should be given a fair opportunity to present their
side of the case – an opportunity that is taken away by “ambush” elections and other restrictions
proposed by the NLRB. Creation of micro-bargaining units would make it difficult if not impossible to
move workers from department to department within a store or to cross train workers for multiple tasks.
And while the “card check” provision of Employee Free Choice Act (EFCA) has yet to be attempted
through the NLRB, NRF is particularly concerned that eliminating secret ballot union elections in favour
of the card check process would subject workers to intimidation and coercion, further stacking the deck
in favour of unions. With only about 5 percent average unionization, the retail industry is considered “low
hanging fruit” by organized labour and is a top priority for unionization efforts.

32. US RETAIL FUTURE
Formats with Above Average Sales Growth Outlook
2001-2006 2006-2012 Non auto retail sales growth forecast
33.20%
27.70%
15.70%
12.30%
10.20%
9.20%
5.90%6.50% 6.40%
5.50% 5.80%5.40%
5.20% 5.20% 5.20% 5.20% 5.20% 5.20%
E-Commerce Supercentres CE Appliances Warehouse Clubs Convenience Drug Stores
stores Stores
Source: PWC US retail Consumer report
E-Commerce and Supercentres will be growing at an above average growth rate of more than 10 %.
Convenience stores would also be growing at a growth rate of more than 5%. US online Retail would be
11% of the total retail and 15% of total retail(excluding grocery) by 2015 . (Source: Forester)

33. US ONLINE RETAIL FUTURE
Online retail format will constitute 11% of the total retail and 15 % of the total retail(excluding grocery) by
2015. This shows that the future of US retail lies in online retail. Americans would prefer to purchase online
in future.

34. Thank You
Name Of Student Roll No.
Abhinav Agarwal 043003
Abhinav Mittal 043004
Deepali Agarwal 043019
Hitaishi Gupta 043026