United States Retail Market

United States Retail Market Overview:

United States retail market size is projected to exhibit a growth rate (CAGR) of 2.40% during 2024-2032. There are various factors that are driving the market, which include the rising focus on e-commerce shopping among individuals, increasing population growth, and numerous partnerships, collaborations, and mergers and acquisitions (M&As) among various top players.

United States Retail Market Analysis:

• Major Market Drivers: One of the key market drivers includes the shift towards sustainable and ethical practices. Moreover, there is an increase in the demand for personalized shopping experiences, which is acting as another growth-inducing factor.        
• Key Market Trends: The rising focus on e-commerce shopping among individuals and increasing population growth are main trends in the market.
• Competitive Landscape: Some of the major market players in the United States retail industry are provided in the report.
• Challenges and Opportunities: Changing consumer behavior represents a key market challenge. Nonetheless, the expansion of private label brands, coupled with the rising adoption of advanced technologies, is projected to overcome these challenges and provide market opportunities.  

United States Retail Market Trends:

Rising Focus on E-Commerce Shopping

As per Adobe Analytics, on July 16, 2024, the first day of the Prime Day event, Americans spent US$ 7.2 billion online, representing an 11.7% year-over-year (YoY) gain, and on July 17, 2024, they spent US$ 7 billion online, a 10.4% YoY. The increasing number of e-commerce platforms is impelling the market growth. As more platforms are emerging, competition among online retailers is intensifying, leading to greater innovation and improved user experiences. These platforms offer a wide range of products, seamless transactions, and efficient delivery options, which is offering a favorable United States retail market outlook. In order to remain competitive, e-commerce platforms are encouraging traditional brick-and-mortar businesses to improve their online presence and implement omnichannel tactics. Furthermore, the impact of these platforms on the retail market is accelerated by the expansion of mobile commerce. E-commerce companies are improving their mobile interfaces to guarantee a seamless buying experience. The convenience of shopping on the go contributes to increased sales, as consumers can make purchases anytime and anywhere.

Increasing Population

As per the World Bank, the population of the United States was around 334,914,895 in 2023. The rising population levels are catalyzing the United States retail demand. This demographic growth interprets into higher consumption levels across different retail categories including food and beverages, clothing, electronics, and household items. In addition, retailers are focusing on increasing their physical and online presence and providing a range of goods and services that are catering to urban lifestyles of people. Besides this, as the population becomes more diverse, retail shops are meeting the unique requirements and preferences of a wider range of demographic groups. This entails providing user support in two languages, culturally appropriate products, and advertising campaigns. The ability to tap into these diverse markets enhances retailers' competitiveness and contributes to higher United States retail market share. Furthermore, retailers that can effectively address the unique needs are well-positioned to capitalize on the expanding market opportunities.

Various Partnerships and Collaborations Among Key Players

The market is expanding due to numerous partnerships, collaborations, and mergers and acquisitions (M&As) among top players. These alliances are vital in enhancing market reach, improving operational efficiencies, and delivering better user experiences. Retailers are joining forces with technology firms, logistics companies, and even other retailers in order to leverage each other's strengths and expand their market presence, which is propelling the United States retail market growth. Such partnerships also allow physical stores to benefit from the digital expertise and online reach of e-commerce companies. Furthermore, partnerships between retailers and logistics companies are becoming essential in enhancing supply chain efficiency and delivery speed, which are critical factors in the highly competitive retail market. For instance, on 19 September 2023, Uber and Oracle, both American companies, announced a partnership to enable the thousands of retailers and other brands that run on Oracle Retail applications to use the Uber direct on-demand shipping platform to facilitate hassle-free product deliveries and returns. These Oracle clients can now easily implement on-demand delivery services connected with their e-commerce, point-of-sale, procurement, customer relationship management, merchandising, inventory planning, distribution, and restocking systems under the unified service known as Collect and Receive.

United States Retail Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2024-2032. Our report has categorized the market based on product and distribution channel.

Breakup by Product:

• Food and Beverages
• Personal and Household Care
• Apparel, Footwear and Accessories
• Furniture, Toys and Hobby
• Electronic and Household Appliances
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product. This includes food and beverages, personal and household care, apparel, footwear and accessories, furniture, toys and hobby, electronic and household appliances, and others.

Food and beverages segment includes grocery items, packaged foods, fresh produce, beverages, and other consumables. The rising demand for essential goods among individuals is impelling the market growth. In addition, increasing preferences for online grocery shopping among people with busy lifestyles is propelling the market growth.

Personal and household care comprise products such as skincare, haircare, cleaning supplies, and hygiene items. The increasing awareness among individuals about health and wellness is bolstering the market growth. Furthermore, the rising popularity of eco-friendly products among individuals is contributing to the market growth. United States retail companies are introducing innovative products to grab the attention of a wider consumer base.

Apparel, footwear and accessories are widely used by a large population across the globe. This segment is influenced by seasonal trends, brand loyalty, and the shift towards e-commerce, with fast fashion and luxury goods showing significant activity.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
• Others
   

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes supermarkets and hypermarkets, convenience stores, specialty stores, online stores, and others.

Supermarkets and hypermarkets provide a variety of goods under one roof such as food, home goods, electronics, and apparel. They are a popular choice among individuals due to their low price, regular promotions, and ease of one-stop shopping. These stores offer a wide range of products as to draw in a large consumer base and increase United States retail market revenue.

Convenience stores are smaller retail shops with a restricted inventory like snacks, drinks, and personal hygiene goods. They are usually situated in conveniently accessible regions. Their main selling points are their quick service and accessibility, which appeal to individuals seeking for easy and quick purchasing. The industry is expanding because of people's growing desire for ready-to-eat (RTE) meals and healthier snack alternatives.

Specialty stores concentrate on particular product categories like home decor, technology, fashion, and cosmetics. These shops target certain consumer categories with carefully chosen product offerings to cater to niche markets. In addition, the growing demand from individuals for distinctive and superior items is driving the market's expansion. People are preferring to shop at stores that align with their tastes and preferences, which is leading to a positive United States retail market forecast.

Breakup by Region:

• Northeast
• Midwest
• South
• West
   

The report has also provided a comprehensive analysis of all the major markets in the country, which include Northeast, Midwest, South, and West.

The Northeast region, encompassing states like New York, Massachusetts, and Pennsylvania, is characterized by a high population density. The rising demand for premium products, luxury goods, and specialty items among individuals in the region is impelling the market growth. The retail market in the Northeast is driven by a mix of traditional brick-and-mortar stores and a rapidly expanding e-commerce sector. The region’s cold climate also influences seasonal demand for winter apparel and heating-related products. All these factors provide the United States retail market overview of the region.    

The Midwest has a diverse economic base with strong agricultural and manufacturing sectors. The retail market here is influenced by value-conscious consumers. The presence of a combination of large retail chains and small or family-owned businesses in the region is bolstering the market growth.

The South, covering states like Texas, Florida, and Georgia, is the largest and fastest-growing region in the United States. This region's retail market is fueled by a rapidly expanding population, particularly in urban and suburban areas, as well as a growing economy. The region is also known for the presence of large retail chains, particularly in sectors like food and beverage, apparel, and home improvement.

The West region, which includes states like California, Washington, and Colorado, is known for its diverse population and strong economy, particularly in technology, entertainment, and tourism. The retail market in the West is highly dynamic, with a significant emphasis on innovation, sustainability, and health-conscious products.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have been provided.
• Key players in the market are investing in digital transformation to strengthen their omnichannel presence, engaging in partnerships and acquisitions, and introducing innovative products to expand their market reach. All these factors are providing the United States retail market recent opportunities. Top players are expanding their private label offerings and focusing on personalization through data analytics to better understand and serve their users. In addition, they are investing in supply chain improvements to ensure timely delivery of online orders. Furthermore, companies are forming partnerships and acquiring other players to provide improved solutions that enhance user experience. For instance, on 28 March 2024, The Home Depot®, the world's largest home improvement retailer, completed the acquisition of SRS Distribution, Inc. (SRS) for a total enterprise value of approximately US$ 18.25 billion. SRS is a leading residential specialty trade distribution company across several verticals serving the professional roofer, landscaper, and pool contractor. 

United States Retail Market Recent Developments:

• 8 August 2024: Lowe's Companies, Inc. rebranded its retail media network with a new logo and a simplified name: Lowe's Media Network. Lowe's also announced expanded placements on the Lowe's app and the launch of four new channels this year including email, in-store audio, paid search, and direct mail for install services.
• 16 May 2024: CVS Pharmacy®, the retail division of CVS Health®, announced the launch of Well Market™, a new store brand consumables line featuring snacks, beverages, and groceries. The aim is to be the most consumer-centric healthcare solutions company. Through this repositioning and expansion of food and beverage portfolio, the company is providing new nutritious options.

United States Retail Market Report Scope:

Key Questions Answered in This Report:

• How has the United States retail market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the market?
• What is the breakup of the market on the basis of product?
• What is the breakup of the market on the basis of distribution channel?
• What are the various stages in the value chain of the market?
• What are the key driving factors and challenges in the market?
• What is the structure of the market, and who are the key players?
• What is the degree of competition in the United States retail market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States retail industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.