Direct Selling

Companies in this segment sell a wide variety of products, primarily door-to-door or through other person-to-person contact.


Franchisers grant franchises to interested companies in the retail industry. These companies sell a wide variety of products, but are held to the standards and regulations set by the particular franchiser.


Companies in this segment sell a variety of products to consumers including apparel, hardware, household goods, and office supplies, primarily in-store or online.

The Retail industry is Fragmented. The production in this industry is divided among a few different companies, however, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.

Primary Demand Drivers

  • Personal income
  • Consumer confidence
  • Interest rates

Profitability Drivers

  • Efficient supply chain management
  • Effective merchandising and marketing

From the Blog Blog RSS

E-commerce sales have been growing over the past decade at a rapid rate and the online retail economy is booming. According to the US Census Bureau, 9.6% of all retail sales were from e-commerce sales during the second quarter of 2018. This percentage was only 4.4% in the second quarter of 2010. This post will discuss the reasons behind the shift from brick-and-mortar businesses to online retail stores.

Although overall retail spending has continued to grow, factors such as e-commerce and an abundance of shopping malls are changing the way people shop.  Today, e-commerce sales are steadily increasing, with Amazon sales rising from $16 billion to $80 billion between 2010 and 2016, and nearly half of all United States households are now Amazon Prime subscribers.  Also, according to Cowen and Company’s research analysts, between 1970 and 2015 the number of shopping malls in the United States grew more than twice as fast as the population.


  1. SelectUSA (Date Accessed: 6/1/2017)