Quarterly, economists monitor the performance of the retail industry by monitoring retail sales and consider it when making economic decisions. Retail as an industry plays an important role in our daily lives.
Some people may wonder: Are retail outlets really that important?
We will be listing different reasons why the retail industry is so important to us all in this article.
1. Retail provides an important service to the public
Retail stores are crucial in connecting manufacturers of goods with end consumers. Customers will have to purchase directly from the factory outlet if there is no retailer. All goods in the outlet are the same brand.
However, retail stores make it easy for customers to compare and select between manufacturers and then choose the most affordable and best-suited offer.
This creates a healthy competition environment in which manufacturers will do their best to produce a high-quality product at a fair price in order to win sales at the store.
2. Retail is the largest private employer
Retail is a key driver of Australia’s economy.
Retail offers many opportunities to people looking to begin their careers.
Many people find it easy, even if they don’t intend to stay in this industry for very long, to get a job as a retailer when they need to make ends meet.
Other people are just hooked for life and can’t get enough of the excitement and speed this industry offers.
Despite the fact that many retail workers are only there for a short time, people who stay and learn the right skills often grow quickly in this industry. In addition, retail managers are hard to find, so those who have the right skills tend to be in high demand. As a result, some retail managers have seen their salaries rise to six figures.
3. Brands with a physical presence are trusted by customers
Even for online businesses, it is important to have a physical presence in order to build trust with customers.
Many pure-play online retailers recognized this and began to have a physical presence in retail, even through pop-up stores.
Customers still like to feel and touch the product before buying. They also want to try it on to ensure it fits properly. Others prefer to order online and pick it up at the store on their way home.
It is worth noting that physical shops still sell the majority of goods, despite the popularity of online shopping. Manufacturers are particularly affected by this because they must create and sell large quantities of goods to make their business profitable. Therefore, physical stores are the best way to clear more goods in terms of quantity.
4. Retail Therapy is Real
People don’t just visit malls to purchase a product. Instead, they go shopping for fun.
Research has shown that retail therapy works, and many people use shopping to lift their spirits.
It’s a great experience to browse through shops and try on different outfits. After lunch, they go to the mall’s cinema, then drive home with lots of shopping bags.
5. Mom & Pop Shops Support Families
For those who don’t want to be employees, it is possible to open a mom-and-pop shop.
There are many types of retail shops. Every day, a large number of independent retailers open new small businesses across the country.
You can find everything from flower and gift shops to convenience stores, pharmacies, beauty shops, stationery & office supplies, independent fashion boutiques, franchise stores, and even convenience stores.
Each of these independent retailers supports a family from this one store. This is in addition to the number of people employed by these stores.
6. Street shops add life to cities
Every major city around the globe can benefit from physical stores.
Imagine walking through New York City without any stores… boring and dead, right?
The street’s unique atmosphere is created by the light and buzz it creates.
Tourism to these places also contributes to the economy.
Many famous tourist destinations like Dubai are highly sought-after for their shopping experience and the availability of multiple brands under one roof. This is why Dubai’s GDP has a significant retail and wholesale component (+ 25%).
Conclusion
Retail is Important for All of Us. Not only are they important for those who work in the industry, but also, as we’ve seen, they play an important part in our daily lives at various economic and cultural levels.
This industry is vital to the economy. It provides jobs, drives consumption, and gives life to tourist areas.
