Large Retail Sales and Profitability

Tables/Charts:

Concentration of Retail Sales Among the Largest Retail Firms, 2007

Profitability of Large Retail Corporations,  2006–2010

Summary Points:

• Retail sales are most concentrated among home centers, where just four companies recorded over 92 percent of total category sales.

• Retail sales are least concentrated for motor vehicle and parts dealers, where the top 50 retailers account for just 14 percent of total category sales, and food service and drinking places where only 23.7 percent of sales are from the top 50 retailers.

• Retail industry profitability tends to average between 2 and 4 percent, a relatively low rate compared to profitability in other industries, such as manufacturing.

• In 2010, annual retail industry profitability rose above 3 percent for the first time since 2007.

Concentration of Retail Sales Among the Largest Retail Firms,* 2007
(NAICS Definitions and Percent)

Kind of Business	Top 4 Retail Firms	Top 8 Retail Firms	Top 20 Retail Firms	Top 50 Retail Firms
Total Retail Motor Vehicles & Parts Furn. & Home Furnishings Electronics & Appliance Building Mat. & Supplies   Home Centers Food & Beverages Health & Personal Care   Pharmacies & Drug Stores Gasoline Stations Clothing & Accessories   Jewelry Sprt., Hbby. & Musical Instr.   Sporting Goods Book, Periodical & Music General Merchandise   Department Stores Misc. Retail Nonstore Retailers Food Service & Drinking Total Retail (Plus Food (Service & Drinking)	12.3% 4.8 13.9 46.3 45.9 92.7 27.7 54.4 63.0 10.1 18.6 24.5 23.8 29.3 59.5 73.2 73.2 21.8 16.1   5.8 11.5	17.5% 7.3 20.0 56.9 50.1 93.0 39.4 58.2 65.8 17.1 26.2 30.9 36.0 41.0 68.4 85.0 92.8 26.7 24.7 10.1 16.5	25.4% 10.6 28.2 66.3 53.5 93.7 50.8 62.5 68.8 30.5 38.9 37.5 53.1 52.1 74.3 96.1 100.0 31.0 35.6 17.4 24.3	33.3% 14.0 36.1 71.0 56.5 94.5 61.0 66.2 70.6 40.5 55.7 43.5 62.6 56.3 77.9 98.6 100.0 34.6 46.7 23.7 32.0

* "Firms" are roughly equivalent to "companies," and "top" designation is in terms of sales.
Source: U.S. Department of Commerce, Bureau of Census

Profitability of Large Retail Corporations,* 2006-2010 (NAICS Definitions, Millions of Dollars, and Percent)
	Profits After Income Taxes	Net Sales Receipts & Operating Revenues	Retail Profits as a Share of Sales
2006	$63,174	$1,948,397	3.24%
1st quarter	15,479	459,382	3.37
2nd quarter	13,827	477,908	2.89
3rd quarter	14,068	479,348	2.93
4th quarter	19,800	531,759	3.63
2007	$62,517	$2,065,182	3.03%
1st quarter	14,370	497,962	2.89
2nd quarter	17,648	512,116	3.45
3rd quarter	12,887	504,138	2.56
4th quarter	17,612	550,966	3.20
2008	$28,908	$2,094,084	1.38%
1st quarter	11,258	511,164	2.20
2nd quarter	12,418	531,591	2.34
3rd quarter	8,278	518,200	1.60
4th quarter	-3,046	533,129	-0.57
2009	$48,262	$2,025,176	2.38%
1st quarter	7,366	487,600	1.51
2nd quarter	13,067	498,538	2.62
3rd quarter	11,550	497,441	2.32
4th quarter	16,279	541,597	3.01
2010	$67,102	$2,155,441	3.11%
1st quarter	15,119	518,924	2.91
2nd quarter	16,020	528,642	3.03
3rd quarter	13,485	526,736	2.56
4th quarter	22,478	581,139	3.87
* Retailers with assets of $50 million and over. Source: Derived from U.S. Department of Commerce, Bureau of the Census data.

Retail Industry Indicators 2009 © NRF Foundation www.nrffoundation.com