PERRY’S DEPARTMENT STORE BUYING PORTFOLIO | Page 5

RESARCH PAPER
Understanding the economic trends in the economy is an essential part of buying
for department stores. It is important to analyze varying trends such as cost of living,
unemployment rates, education levels, and interest rates in different environments. The
economic status can vary among local economies, regions, and national levels. Overall, the
America’s make up 35% of the global market, and as a whole the United States is made up of
approximately 314.2 million people. As the year progresses, menswear is expected to
exceed $402 billion in 2014 according to Market Line statistics which encourage an increase
in sales for that department.
The current unemployment rate in the United States is at 7.9% which is a
significant 1.3% decrease from last year. Monetary spending in the US has peaked to
approximately 75.4% surpassing the national average at 73.9%. Consumer are shown to
have more money to spend because the disposable personal income has reached an all-time
high. It increased to 13021.20 USD Billion in June of 2014 from 12969.70 USD Billion in May
of 2014. Because of this consumer spending has also reached an all-time high, reaching
10912.60 USD Billion in the second quarter of 2014. Retail sales increased 4.3% over the last
year. US Inflation rates have decreased by 1.7% due to falling energy prices according the
U.S. Bureau of Labor Statistics. According to the National Center for Education Statistics, in
the year of 2013, 89.9% of persons 25 to 29 years have completed high school or higher. In
this same study 33.6% have attained a bachelor degree and 7.4% have received a master’s
degree. The median household income for the state is a high of $61,406 and the average
disposable spending after tax each month is estimated as 3,312.53, with an interest of 4.2%.
In the state of Virginia, there are approximately 8.26 million people. The current
poverty rate for families in Virginia is 7%. The unemployment rate in Virginia averages at
5.9% which is 2% lower than the national average. In the year of 1999 there was an
estimation of 2,700,335 households and the median income was approximately $46,677.
20.3% of this population earned between $50,000-$74,999. 18.3% of resident work in the
education, health, and social services industry. 11.3% work in manufacturing, 11.4% work in
retail, and 11.6% work in management and administration. 66.8% of people over the age ق