The State of Retail in 2025: Industry Statistics You Need to Know

Did you know that retail is the backbone of the U.S. economy? As the nation’s largest private-sector employer, it largely impacts the country’s financial well-being. And even with the rise of e-commerce, a whopping 85% of all retail sales still happen in physical stores!

This is partly because retail, like any other industry, prioritizes customer satisfaction, making offline shopping remain a big deal. Additionally, the retail industry employs 15.5 million people, underscoring its importance.

Want to know more about the retail stats? Let’s have a look into the numbers!

Retail Industry Statistics at a Glance

• 85 percent of all retail sales occur in a physical store.
• E-commerce accounted for 16.1 percent of total sales in 2024.
• In 2023, total retail sales grew by approximately 3.6 percent compared to the previous year.
• Retail trade sales rose by 0.5% in January 2025, Across 2025, retail sales rose 3.4% from 2024.
• 81% of people research businesses online before making a purchase.
• The Retail Trade sector is an integral part of the U.S. economy, employing roughly 15.5 million people.
• The retail industry's unemployment rate for Feb 2025 was 5.1% , compared to the national rate of 4.1%.

Retail revenue by Channels: E-commerce vs. Physical Stores

• E-commerce accounts for 15.4% of total retail sales in the U.S., meaning nearly 85% occur in physical stores (Statista).
• Total e-commerce sales for 2024 were estimated at $1,192.6 billion, an increase of 8.1% from 2023. E-commerce accounted for 16.1% of total sales in 2024 (census.gov).
• U.S. retail e-commerce sales for the fourth quarter of 2024 totaled $352.9 billion, a 22.1% increase from the third quarter of 2024 (census.gov).
• In 2023, American consumers spent a substantial $7.051 trillion in retail stores, compared to $1.243 trillion online. (U.S. Census Bureau).

Retail Industry Growth Statistics

• Total retail sales in the U.S. grew by approximately 3.6% in 2023 compared to the previous year. (Statista).
• Total retail sales increased by 4.5% in the fourth quarter of 2024 compared to the same period in 2023 (census.gov).
• Retail sales in the U.S. increased by 0.2% in February 2025, remaining stable from February to March 2025 (tradingeconomics).

Retail Industry's Impact on employment and economy

• The retail industry employs roughly 15.5 million people in the U.S. (bls.gov).
• There were 4.6 million retail establishments, accounting for 11.1% of all business establishments in the U.S. in 2022. (NRF).
• All retailers also directly provided 32.2 million jobs for American workers. (NRF).
• Retail industry's unemployment rate was 5.1% in February 2025, compared to the national rate of 4.1% (bls.gov).
• The retail industry contributed $5.3 trillion to the U.S. GDP, accounting for 20.4% of the total GDP (NRF).
• One out of five people in the U.S. works in the retail and hospitality sector. (McKinsey and Company)
• Retail is the only industry in which flexibility ranks as the number-one driver of why employees might leave their jobs. (David Fuller for McKinsey and Company)

Retail Market Size Statistics

• The global retail market sales will account to 32.8 trillion U.S. dollars by 2026. (Statista)

Source: eMarketer

• As of 2025, the retail sales worldwide will account to approximately $31.2 trillion. (emarketer)
• The retail sales grew by approximately 31.77% from 2020 to 2025 with an annual growth rate of 5.8%.
• Last year (2024), America's retail industry made $7.6 trillion in revenue and in 2025 it made $8.6 trillion in revenue. (IBIS)
• The global retail sales are projected to reach 32.8 trillion by 2026, and U.S. retail sales is supposed to reach 8.6 trillion by 2026. (Statista)

Global Retail Leaders By Country

• In 2023, the United States had a total retail market exceeding $7.24 trillion, with Walmart, Amazon, and Costco standing out as among the world’s top retail companies. (Statista)
• China’s retail revenue reached approximately $6.4 trillion in 2023, solidifying its position as one of the largest retail markets globally. (Stats.gov)
• India’s retail sales were projected to reach $1.03 trillion in 2023, with the market being largely driven by the unorganized or informal sector, which is characterized by a significant presence of self-employed individuals.(Statista)

Statistics on Leading Retail Companies

• Walmart was the largest retailer in the world in 2023, with a revenue of $635 billion. (NRF)
• Followed closely by Amazon with a retail revenue of $359.9 billion in 2023. (NRF)
• Costco became the third largest retailer in 2023 with a retail revenue of $234.2 billion. (NRF)
• The Kroger Co. was placed fourth in the list and it made $149.61 billion in 2023. (NRF)
• In 2023, Home Depot, headquartered in the U.S. made $150.73 billion. (NRF)

Retail Trends to Look Out for

Retail brands often find it hard to connect with consumers. They need to step up and offer personalized experiences to stand out. These numbers prove that retailers can use technology to offer better customer experience.

AI in Retail

Retail sector has embraced AI and Machine learning in the past couple of years leading to incredible growth.

Image Source: IHL

• Retailers using AI/ML saw 2.3x sales growth and 2.5x profit growth compared to non-adopters in 2023. (IHL)
• A similar performance was predicted for 2024 with a 2.4x growth in sales and 2.6x growth in profits compared to retailers that are not using AI/ML. (IHL)
• Over 72% of retailers using AI have seen a decrease in operating costs. (NVIDIA)

Social Commerce

Source: Statista

• Global social commerce revenue was nearly $1 trillion in 2023. (Statista)
• Social commerce is projected to grow at a CAGR of over 13.7% from 2023 to 2028. (Statista)
• In China, social commerce makes up over 47% of all e-commerce. (Statista)

Resale Market

Source: ThredUp

• The global secondhand apparel market is projected to increase by 127% by 2026, which is three times faster than the overall global apparel market. (ThredUp Survey Report)
• By 2028, the U.S. secondhand market is anticipated to more than double its current size, reaching a value of approximately $73 billion. (ThredUp Resale Report 2024)
• Resale is expected to grow at a pace that is sixteen times faster than the broader retail clothing sector by 2026. (ThredUp Resale Report 2022)

Consumer Behavior in Retail

Source: eMarketer

• 69% of consumers said they would rather look for product reviews on their phones first. (eMarketer)
• 81% of retail shoppers research products online before making a purchase. (GE Capital Retail Bank).
• 80% of shoppers say the experience a brand provides is just as important as its products. (Salesforce).
• 80% of consumers are more likely to make a purchase from a brand that provides personalized experiences. (Epsilon)
• 53% of shoppers use their mobile devices in-store to compare costs or research deals and coupons rather than talking to an employee. (eMarketer)