Retail Industry

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THE ECONOMIC IMPACT OF THE U.S. RETAIL INDUSTRY

August 2011

Prepared for
National Retail Federation

The Economic Impact of the U.S. Retail Industry

THE ECONOMIC IMPACT OF THE U.S. RETAIL INDUSTRY
Table of Contents

EXECUTIVE SUMMARY I. II. III. IV. V. INTRODUCTION INDUSTRY DEFINITION NATIONAL RESULTS STATE RESULTS CONGRESSIONAL DISTRICT RESULTS

E-1 1 3 6 11 26

APPENDICES A. B. DETAILED STATE-BY-STATE OPERATIONAL IMPACT RESULTS DATA SOURCES AND METHODOLOGY A-1 B-1

This document has been prepared pursuant to an engagement between PricewaterhouseCoopers LLP and its Client. As to all other parties, it is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

The Economic Impact of the U.S. Retail Industry

THE ECONOMIC IMPACT OF THE U.S. RETAIL INDUSTRY EXECUTIVE SUMMARY The National Retail Federation engaged PwC to quantify the impact of the retail industry on the U.S. economy. In evaluating the retail industry's economic impacts, this report considers three separate channels -- the direct, indirect, and induced impacts -- that in aggregate provide a measure of the total economic impact of the retail industry:  



Direct impact is measured as the jobs, labor income, and gross domestic product ("GDP") within the retail industry. Indirect impact is measured as the jobs, labor income, and GDP occurring in other industries due to the retail industry's purchases of inputs other than merchandise intended for resale. Induced impact is measured as the jobs, labor income, and GDP resulting from household spending of income earned either directly or indirectly from the retail industry's economic activities.

This report finds that there are over 3.6 million retail establishments (including food services and drinking places) across the country, accounting for 11.9 percent of all business establishments in the country. These retail businesses directly provided 28.1 million full-time and part-time jobs in 2009. The industry's direct labor income impact was estimated to be $770 billion or 8.7 percent of the national labor income in 2009. The industry directly added $1.2 trillion to GDP, accounting for 8.5 percent of U.S. GDP in 2009 (see Table E-1). Table E-1. The Retail Industry's Direct National Impact, 2009 Item Direct National Impact 3,617,486 28,113,476 $770.1 billion $1.20 trillion Percent of U.S. Economy 11.9% 16.3% 8.7% 8.5%

Establishments(1) Employment (Jobs)(2) Labor Income(3) GDP

Source: PwC calculations using the IMPLAN modeling system (2009 database) and data from the U.S. Bureau of Economic Analysis, the Census Bureau, and the Bureau of Labor Statistics. For this study, the retail industry is defined to include retail trade and food services and drinking places. (1) An establishment is a single physical location at which business is conducted. A business may consist of more than one establishment. (2) Employment is defined as the number of payroll and self-employed jobs, including part-time jobs. (3) Labor income is defined as annual wages and salaries and benefits as well as proprietors' income.

E-1

The Economic Impact of the U.S. Retail Industry

As a point of reference, the retail industry (including food services and drinking places) was the largest private-sector employer in the country in 2009, providing more direct jobs than every other industry at the 2-digit NAICS code level (see Table E-2a). In terms of the direct GDP impact, the retail industry is ranked as the third largest among all 2-digit NAICS industries (see Table E-2b). Table E-2a. Direct Employment by 2-Digit NAICS Industry, 2009 Industry Description Em ploy m ent (Jobs) 28,113,47 6 1 8,7 82,1 00 1 2,393,7 00 1 1 ,828,800 9,939,300 9,882,500 9,505,000 9,432,000 7 ,534,1 00 6,1 61 ,900 5,499,300 3,923,400 3,822,000 3,468,300 3,359,300 1 ,962,600 1 ,358,500 600,200

Retail trade (including food serv ices and...
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