Retail Is The Nation’s Largest Non-Farm Employment Sector Economic development initiatives often focus on recruiting “big” companies and industries, while overlooking what the U.S. Bureau of Labor Statistics reports is the nation’s largest non-farm employment sector: retail. Retailers come in many shapes and sizes and tend to be very sensitive to economic swings, making it critical that communities develop strategies to attract and retain the right retailers. If you aren’t convinced that retail development is worth the investment, here are three benefits that a thriving retail sector provides.
Benefit #1: Increase Sales Tax Revenue
Perhaps the primary driver of retail recruitment efforts is sales tax collection, which has played an important role in making up for shortfalls in other revenue streams. The share of sales tax revenue generated by retailers is substantial. But if your residents have to leave the community to shop at their preferred retail outlets, those sales tax dollars end up benefitting a neighboring community. By identifying and recruiting the retailers that are the best match for your community’s needs and interests, you can keep sales tax dollars in your city’s general fund and invest the money back into local public projects and services.
Benefit #2: Enhance Quality Of Life
Convenient shopping and dining options greatly contribute to a community’s quality of life. Shorter drive-times save time and fuel costs, while increasing the frequency of visits. But to truly enhance quality of life, community leaders should focus on recruiting the retailers that are the best match for the community’s needs and desires. Otherwise, residents may continue to bypass local retailers in favor of others that provide the products, services, or experiences they seek.
Benefit #3: Support Local Businesses
Retail development efforts shouldn’t focus exclusively on recruitment. An equally important part of any strategy is support for existing retailers. Whether existing outlets are owned by local entrepreneurs or larger chains, they can all benefit from insights on local demographic and lifestyle trends, competitors in neighboring communities, and local government decisions that could impact their business. Smart communities use analytical tools to help existing retailers optimize their location, marketing, and merchandising strategies, contributing to long-term success.
Smart Communities Use Analytical Tools
Since 1994, Buxton has provided big answers for retailers and communities. Our insights go beyond broad regional demographics by drilling down to the household-level in order to give you the clearest picture of your community. We’ve helped 650 communities recruit over 35 million square feet of retail space.
