The Retail Industry’s Importance for the Economy

Retail is how consumers get products and services from producers. These producers, also known as […]

Retail is how consumers get products and services from producers. These producers, also known as retailers, get the products from the manufacturer or distributor then offer the finished product to their consumers. It is thanks to this apparently simple pathway from the “original” point to the final consumer, that customers are able to get the products they want. This has a direct economic impact basically everywhere, and this is the retail industry’s importance.      

Basically, retailers are the last stop in the supply chain before the product ends up in a shopping cart. This industry is so important that it is considered as a thermometer of the economy in many countries, including the two that will be mentioned here: The United States of America and Brazil.    

Importance for the U.S. Economy

In 2019, the U.S. retail industry generated 5.4 trillion dollars in sales, which is three times more than the 1.8 trillion dollars generated in 1992. Food and beverage stores are on the lead, with a 773 billion dollars income. Following behind are online retailers, vending machines, and direct sales stores contributing with 761 billion dollars. 

Finally, online sales contributed with a 667 billion dollars income, compared to only 35 billion in 1992. This incredible growth happened thanks to the popularization of online shopping. This type of shopping used to be suspiciously seen, but today is one of the most common, trusted, and easy ways of shopping for many.    

The COVID-19 pandemic strongly impacted the retail industry, with a loss of  over 2.2 million jobs. But thankfully, by the end of the year, the industry had already gained back 1.9 million jobs. The retail industry’s importance for the american economy then becomes evident, as well as its a very lucrative, resilient, and vital presence. 

The Brazilian Retail Industry

Similarly to many others around the world, the Brazilian market is going through a fast transformation. This shift is happening mostly because of the spread of technology, as more people turn to the internet for things like looking for information and shopping, and it was speeded up by the pandemic. E-commerce is not just an option or a new trend anymore, it is a reality that brings a lot of growth, changes and innovation to the industry.

The Brazilian retail industry is now recovering from the pandemic impacts, and sectors like furniture, home appliances, and electronics are leading it. Smart Research is excited to watch such an important industry recover and return in full force all over the world. We know that with the right data expanding and improving your business becomes a lot easier, especially in times like these when habits have changed. Helping our partners achieve these goals is our highest priority.