SelectUSA Retail Trade Industry
Retail Trade Industry
The United States has well-established distribution channels for all types of retail companies. The retail services industry provides an openly competitive environment that fosters strong business operations and spurs innovations that increase efficiency and reliability. At the end of 2023, the gross domestic product of the Retail Trade industry was over $1.8 trillion. Latest employment estimates indicate that 15.6 million workers were directly employed in the retail trade industry in mid-2024. The National Retail Federation estimates that the retail trade industry directly and indirectly supports 52 million full-time and part-time jobs, making this industry the United States’ largest private-sector employer. Numerous opportunities for growth exist in the U.S. retail market for retail providers of all sizes, including individual direct marketers or direct sellers, small- to medium-sized franchise unit owners, and large “big-box” store operators. In 2023, foreign direct investment in the U.S. retail industry reached $198.6 billion and foreign-owned companies employed 1,048,900 workers in 2022.
The store retail industry includes motor vehicle and parts dealers; clothing and clothing accessories stores; food and beverage stores; and gasoline stores. In 2023, foreign direct investment contributed $198.6 billion to the store retail industry, including $74.9 billion in food and beverage stores; $60 billion in health and personal care stores; and $25.6 billion in clothing and clothing accessory stores. In 2022, total employment by foreign-owned businesses in the store retail industry reached over 1 million employees.
The nonstore retail industry includes electronic shopping, vending machine operators, and direct selling establishments. In 2022, there were 90,991 establishments in this industry.
Franchising has provided business opportunities in the United States for more than 150 years. The model is widely embraced because it provides an established plan for business expansion and a means of spreading risk. Franchising also offers assistance and support for new business owners by passing on a proven business model, along with training and support, advertising programs, and accounting and payroll management.
Franchising offers products and services in over 300 business categories, including food and beverage, lodging, health and educational services, professional services, auto care, accounting and tax services, real estate, home services, IT services and retail products. As a leading job creator in both the U.S. and abroad, franchising continues to prosper in markets all over the world, no matter their level of development or sophistication.
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