It is not just American retailers but the entire retail ecosystem that created an unmatched shopping experience . The government policy support , affluence , capital , diversity , culture , infrastructure and the Chinese low-cost high-scale manufacturing outsourcing base played the trick .
American Retailers - Developing Two Superpowers
Retailing in America played a key role in arousing aspirations . Increased intensity of stores combined with the state of art ambience , and visual merchandising supported selling innovative merchandise on an unprecedented scale .
American retailers came out with many innovative pre and post-sale services like a free trial , introductory promotional offers , minimum price guarantees , flexible returns , and liberal product warranties . These steps led to creating consumerism in America . The markets were transformed from seller dominant to buyer dominant .
Retailers helped in developing mega brands by providing the required reach , ambience , pre and after-sales service , in-store advertising and promotions .
American retailers are inflation suppressors . They reduce the cost of living of Americans while enhancing their living standards .
Retailers actively supported the creation of the ‘ American lifestyle ’. Brands and retailers can be jointly blamed for creating a materialistic society .
Retailers were partners in the national development . They lured not only Americans but also pulled people from different parts of the world . These migrant citizens had an aspirational lifestyle . They work harder and earn better salaries . Their efforts to improve the standard of living helped retailers to grow further . Retailers responded by developing products , services and formats for different ethnic groups .
Retailers helped Hollywood to take its glamour to the masses in terms of fashion , garment and other merchandise that helped in projecting a modern personality and lifestyle . They propagated Hollywood fashions , fads and trends and created an aura not only around Hollywood but also around America .
Retailers increased mass consumption , expanded markets and played a key role in pushing the American economy to $ 20 trillion . Along with the strong research and academic foundation , powerful military muscle , the burgeoning economy made America the greatest super-power .
Huge and fertile agriculture , large natural resources and industrial base , strong technical and service sector and the dominant role in the international trade and finance fuelled the American economy . Domestic consumption was the key to this mega growth . American retailers provided a very powerful eco-system and frontend to facilitate mass consumption .
Retailers attracted foreign investments , talent and skills from all around the world . It employed immigrant labor , 11.5 % of immigrant labor work in the retail sector in the US .
The higher cost of living is making Americans work for extended years . As per the 2018 figures , 26 % of Americans between age group 65 to 74 were employed . The retail sector has also been helping senior citizens to survive post-retirement . About 7 % of the retail employees in America are older than 65 years and 25 % are more than 55 . Many seniors join retailing jobs after their superannuation from regular jobs . Dollar stores are selling many items at much lower rates attracting seniors . Warehouse club Costco , off-price retailer T J Maxx along Walmart are making efforts to reduce the cost of living . Walmart CEO John Furner told CNBC News in May 2021 that the retailer had about 30 % more discounts in stores in the first quarter than the same period a year ago . He said it plans to continue to dangle deals and widen price gaps to stand out from competitors , “ Over the last 12 months , we saw our price gaps improve versus the market .”
Retailers also helped China to become a superpower by sourcing products . The US imports of consumer goods products are about $ 654 billion as of the year 2020 . US retailers provided a large consumer market to China . Walmart imports 26 % of its merchandise from China , UBS ’ Lasser estimate , while Target imports 34 %. Other companies , including sporting goods , auto parts and furniture sellers , have even greater exposure to China . Dick ’ s Sporting Goods imports 51 % while Bed Bath & Beyond imports 53 % of its goods from China . The American brands and retailers helped Chinese manufacturers to grow their manufacturing capabilities and capacities by offering unmatched scale .
American Retail
American retail market is the largest retail market in the world . The combined turnover of the ‘ Top 50 American retailers ’ is approaching USD2 Trillion . Only seven countries in the world ( excluding America itself ), have annual GDP higher than the collective sale of these top 50 American retail companies . If we consider the average sale of these retailers then all of them would qualify to feature in the Global Fortune-500 list . However , about 19 American retailers feature in the Global Fortune-500 list , much more than any other industry from any country . There are 7 American retail companies in the top 10 retailer list prepared by Deloitte in 2021 . This report ( Global Powers of Retailing - 2020 ) is based on 2018 revenues . The same report shows that there are 77 American retailers in the list of Top-250 global retailers . Their share in the revenue of these Top- 250 retail companies is 44.8 % with an average sale of $ 27.63 billion . These American retailers hold a 31 % share in the total revenue of the Top-250 global retailers , $ 4.74 trillion !
Store War
These 77 chain retailers are from different fields like superstores , discounters , supermarkets , department stores , warehouse stores , pharmacies , convenience stores , consumer durable , off-price retailers , dollar stores , etc . But there ’ s no clear-cut demarcation in their merchandise , services , locations and propositions . Even though most of
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