Introduction to the Retail Industry

Retail sector is the second largest industry in U.S., accumulating number of businesses and employees. According to the government broad measure of retail sales that consists food service, gasoline sales and automobiles) sales in the U.S. climb nearly 6.6% to $4.16 trillion in 2005, comparing a 3.8% increase in the year 2004. In the last year, retail industry evolved strongly, due to higher gasoline costs and good discounting during the Christmas.

The elimination of the global textile quota system enforced industry players to reorganize their businesses again to thrive in a cut-throat competition in the global apparel market. Last year was significant for the exporters and retailers, who re-organize to take benefit of the free trade era, and the best possible exploitation of resources. New initiatives were put in practice to meet new challenges to give the buyers value-add products at more competitive prices.

As a result, re-arranging the businesses for stiff competition was also witnessed in the American apparel industry. The sections, in which retailers focus on more are - better merchandise and inventory management, consolidating sourcing and more involvement in sourcing the country. The only reason behind all preparation was for a better market reach with wide product range.

The strategies made into practice last year and plans for growth in 2006 brought success for leading retailers like: Wal-Mart, Target, Tommy Hilfiger, JCPenny, Kohl's, Sears Holding, and Gap Inc., are all sourcing massively from India.

Wal-Mart: Success is a result of expansion strategy

Wal-Mart is considered the leader in value-added market and currently shifting gears to offer better products to its customers. The company was offering limited range in apparel line, but, has introduced the exclusive apparel line, Metr07 collection in Oct 2005. The intention behind launching this collection is to cater the needs of urban buyers with more styles, featuring feminine touches and fashionable looks.

In a move to provide eco-friendly lines, Wal-Mart has just launched durable, hygienic, value-added product, the George Baby Organic cotton clothing line. This would be the first clothing line, for which Wal-Mart is planning for the coming years.

The Wal-Mart management is very optimistic at the record net sales growth with 9.5 percent to $312.4 billion. 537 new international stores have been added and the company is going to sustain a trend this year with more than 600 stores.

Currently, Wal-Mart operates 2,285 international stores, sourcing from 70 countries and is looking to enter into unexploited markets.

Wal-Mart Stores Inc operates Wal-Mart discount stores, super-centers, Neighborhood Markets and SAM'S CLUB locations in the United States. The company operates in Brazil, Canada, Argentina, Germany, China, El Salvador, Costa Rica, Mexico, Honduras, Guatemala, Japan, Nicaragua, United Kingdom, Puerto Rico and South Korea.

JCPenney: Sees growth through high-end merchandising

In previous years, JCPenney's has marked upbeat enhancement in various commodity ranges and witnessed increase in recognition as a superb place for shopping. The company is optimistic about the future growth with 18 newly added stores, a 22.5 percent climb in operating profits, and more than $1billion in sales generated from jcp.com. Long-term initiatives have been made, which were implemented in mid 2005 to increase growth rate until 2009.