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

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.

Every year, millions of people go shopping the weekend after Thanksgiving.  However, people are choosing to shop online on Cyber Monday rather than visit retail stores on Black Friday. Cyber Monday was one of the biggest shopping days in the United States.  This year, Americans spent $6.59 billion on Cyber Monday alone, according to data from Adobe Analytics.  This large amount of online orders so close to Christmas puts extra stress on retailers trying to avoid late deliveries and unfilled orders.  Normally during the holiday season, the number of late deliveries to households doubles, but this year, companies are having a particularly hard time delivering all of their orders on time.  


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