From: The Bureau of Labor Statistics Occupational Outlook Handbook 2010-2011
Employment
Retail salespersons held about 4.5 million jobs in 2008. The largest employers were clothing and clothing accessories stores, department stores, building material and supplies dealers, motor vehicle and parts dealers, and general merchandise stores such as warehouse clubs and supercenters. In addition, about 156,500 retail salespersons were self-employed.
Because retail stores are found in every city and town, employment is distributed geographically in much the same way as the population.
Job Outlook
Employment is expected to grow about as fast as average. Due to the frequency with which people leave this occupation, job opportunities are expected to be good.
Employment change.
Employment is expected to grow by 8 percent over the 2008–18 decade, about as fast as the average for all occupations. In addition, given the size of this occupation, about 374,700 new retail salesperson jobs will arise over the projections decade—more jobs than will be generated in almost any other occupation.
Employment growth among retail salespersons reflects rising retail sales stemming from a growing population. Many retail establishments will continue to expand in size and number, leading to new retail sales positions. Growth will be fastest in general merchandise stores, many of which sell a wide assortment of goods at low prices. As consumers continue to prefer these stores other establishments with higher prices, growth in this industry will be rapid. Employment of retail sales persons is expected to decline in department stores and automobile dealers as these industries see a reduction in store locations.
Training:
Retail salespersons typically learn their skills through on-the-job training. Although advancement opportunities are limited, having a college degree or a great deal of experience may help retail salespersons move into management positions.
A college degree may be required for management trainee positions, especially in larger retail establishments. Most retail salespersons receive on-the-job training, which usually lasts anywhere from a few days to a few months. In small stores, newly hired workers usually are trained by an experienced employee. In large stores, training programs are more formal and generally are conducted over several days. Topics often include customer service, security, the store's policies and procedures, and cash register operation. Depending on the type of product they are selling, employees may be given additional specialized training. For example, those working in cosmetics receive instruction on the types of products the store offers and for whom the cosmetics would be most beneficial. Likewise, those who sell computers may be instructed in the technical differences between computer products. Because providing the best possible service to customers is a high priority for many employers, employees often are given periodic training to update and refine their skills.
Other qualifications.
Employers look for people who enjoy working with others and who possess good communication skills. Employers also value workers who have the tact and patience to deal with difficult customers. Among other desirable characteristics are an interest in sales work, a neat appearance, and a courteous demeanor. The ability to speak more than one language may be helpful for employment in communities where people from various cultures live and shop.
Advancement.
Opportunities for advancement vary. In some small establishments, advancement is limited because one person—often the owner—does most of the managerial work. In others, some salespersons can be promoted to assistant manager.
Large retail businesses usually prefer to hire college graduates as management trainees, making a college education increasingly important. However, motivated and capable employees without college degrees still may advance to administrative or supervisory positions in large establishments. As salespersons gain experience and seniority, they often move into positions with greater responsibility and may be given their choice of departments in which to work. This opportunity often means moving to areas with higher potential earnings and commissions. The highest earnings potential usually lies in selling “big-ticket” items—such as cars, jewelry, furniture, and electronic equipment—although doing so often requires extensive knowledge of the product and an excellent talent for persuasion.
Earnings
Median hourly wages of wage-and-salary retail salespersons, including commissions, were $9.86 in May 2008. The middle 50 percent earned between $8.26 and $13.35 an hour. The lowest 10 percent earned less than $7.37, and the highest 10 percent earned more than $19.14 an hour.
Median hourly wages in the industries employing the largest numbers of retail salespersons in May 2008 were as follows:
Automobile dealers $18.91
Building material and supplies dealers 11.95
Other general merchandise stores 9.22
Department stores 9.14
Clothing stores 8.94
Many beginning or inexperienced workers earn the Federal minimum wage of $7.25 an hour, but many States set minimum wages higher than the Federal minimum. In areas where employers have difficulty attracting and retaining workers, wages tend to be higher than the legislated minimum.
Compensation systems can vary by type of establishment and merchandise sold. Salespersons receive hourly wages, commissions, or a combination of the two. Under a commission system, salespersons receive a percentage of the sales they make. This system offers sales workers the opportunity to increase their earnings considerably, but they may find that their earnings depend strongly on their ability to sell their product and on the ups and downs of the economy.
Benefits may be limited in smaller stores, but benefits in large establishments usually are considerable. In addition, nearly all salespersons are able to buy their store's merchandise at a discount, with the savings depending on the type of merchandise. Also, to bolster revenue, employers may use incentive programs such as awards, bonuses, and profit-sharing plans to the sales staff.
May 13, 2010