What Are Retail Sales?

Retail sales occur when a business sells manufactured final products or services to consumers. These sales support our economy. Many sales or retail jobs are available to people with various skill sets, and now is a great time to join the industry.

You're buying retail items whenever you shop for groceries, hire a hairdresser or purchase a new car. Retail sales help support our economy and give access to needed products, but they wouldn’t happen without a dedicated team of retail professionals aiding the process.

Here is what you need to know about retail sales and how you can get a job in this essential industry. 

Understanding Retail Sales

Retail sales involve businesses that purchase items as inventory and then sell products or services to consumers for personal use. This type of transaction can occur:

• In-store
• Online
• Through direct mail
• Through direct sales

Products purchased through a retail sale can be perishable, like food, or durable, like furniture. Retail distribution also includes services offered at restaurants, spas and hotels.

In a retail business, retail sales professionals help ensure that customers can find and buy items or services they need with ease.

How Do Retail Sales Impact the Economy?

Retail sales tell a story about how consumers are doing financially. If the economy is poor, people have less money to make retail purchases. Consumers typically spend more on retail products and services if the economy is good.

The United States Census Bureau releases a monthly report showcasing changes in consumer spending habits. This report can provide crucial information, including:

• Consumer demand
• Manufacturing levels (supply)
• Unemployment trends
• Stock or corporate earnings trends
• Overall economy health

As one of the most reliable economic indicators, retail sales give economists what they need to predict whether the economy is on the right track. Strong retail sales made possible by retail professionals expand our economy and help gross domestic product (GDP) growth. 

Retail Sales Jobs

Now that you know what retail sales are and why they are so important, you might be interested in joining the industry. Many jobs are essential to a retail business, so there are many options based on skills and career interests. 

Some common retail jobs include:

• Cashiers
• Store managers
• Inventory buyer
• Retail adviser

Here are other sales or retail jobs that you should know.

What is a Retail Sales Associate?

A retail sales associate helps customers learn about products, compare different options and make a purchasing decision. A sales associate might also help with restocking, cleaning and organizing the store when not working with a customer.

Sales associates need excellent customer service skills, but also need to be flexible. If your store offers in-store pickup or appointment shopping, a retail sales associate should help with those tasks as needed.

Skills these retail professionals have include:

• Communicating with staff and customers
• Problem-solving to meet customer needs
• Organizing and cleaning customer areas 
• Collaborating with other team members 

What Is a Customer Service Representative?

Customer service representatives respond to customer questions or concerns by phone or email. 

These professionals often deal with inquiries about specific products or complaints from dissatisfied customers. They know information about business practices, store inventory and company policies to work most efficiently and create customer loyalty. 

Skills that these retail professionals have include:

• Communicating with customers
• Handling conflict resolution
• Problem-solving on a whim
• Practicing patience and empathy

What Is a Visual Merchandiser?

Visual merchandisers work on the floor to create eye-catching setups for staging products. Their goal is to arrange products to maximize sales. If you’ve wanted to be the person that creates exciting window displays, this may be the perfect role for you.

Working closely with other team members to ensure stock levels are good on the sales floor and in the stockroom is essential. 

Skills that these retail professionals have include:

• Creating and reading planograms
• Strategic and creative thinking
• Multi-tasking
• Working alone and with a team

What Is an Inventory Control Specialist?

An inventory control specialist prevents loss, tracks inventory and controls costs. They create reports representing how much inventory the store stocks versus how much inventory customers buy. 

Another crucial part of this position is ensuring the products received are accurate and up to the business’s standards. If there are defects or quantity problems with inventory, an inventory control specialist will handle those issues with the distributors or manufacturers.

Skills that these retail professionals have include:

• Creating reports with inventory management software
• Creating and maintaining store inventory plans
• Strategic and analytical thinking
• Maintaining or increasing store profits with inventory control 

Challenges in Retail Sales

Retail businesses face many challenges, including:

• Overhead costs 
• Targeting and capturing leads
• Retaining customers

Retail sales employees must deal with these problems as part of their daily tasks. These prominent industry challenges make it difficult to meet customer expectations and maintain consumer loyalty.

People who work in retail sales also report high demands and a fast-paced work environment that can increase stress during busy seasons

Advantages of Retail Sales

There are significant benefits to being part of this industry including growth opportunities for employees that want to earn promotions and expand their careers.

Other benefits:

• Employee discounts
• Flexible working hours
• Plenty of employment opportunities

Key Takeaways

What are retail sales?

• Retail sales occur when a business sells products or services directly to customers. 
• The retail sales industry is crucial to supporting a thriving economy. 
• Many jobs in retail sales are available based on a person’s experience, skills and interests.
• Retail businesses face challenges that impact retail employees, but there are plenty of advantages of working in the retail industry.

(Reporting by NPD)