The retail sector plays a key role in the U.S. economy, not only because consumer demand is an indication of a healthy financial system, but also because retailers serve as large employers. Nearly 10 percent of the national workforce in the U.S. is employed in the retail sector, which provides both long-term career opportunities for young people and seniors. Retailing serves also as a side job when people look to switch between career objectives. No surprises then why the retail sector is greatly affected by consumer spending. Retail sales are highly sensitive to liquidity and preservation of capital. However, the recent real estate slowdown, the increase in energy prices, the tight credit lines and the general market uncertainty, all have led to a general slowdown of consumer-driven economic growth. Generally, consumer spending is the driving force of U.S. economic growth and consequently of the retail sector. How much consumers afford to spend determines the profitability of firms a
"Price is what you pay. Value is what you get"