Retail Business Owners

The retail field is extremely competitive, and many businesses fail each year. The most common reason for failure is poor management. Thus people with some managerial experience or training will likely have the best chance at running a successful business.

The retail industry is directly affected by the economy and is negatively affected by financial downturns. In addition to overcoming economic slowdowns, retail businesses must also face increased competition from other retailers and direct-marketers, and the growth of Internet businesses in the next decade. According to the Department of Labor, little or no employment change is expected for retail sales workers through 2029.

In early 2020, the coronavirus (COVID-19) outbreak had a major impact on every industry, including retailing, causing supply chain disruptions, temporary and permanent store closures, and layoffs. The pandemic's impact was especially severe on franchises. In early 2020, approximately 8 million Americans worked in the franchise sector, according to the International Franchise Association (IFA). By September 2020, the IFA reported that 32,000 franchises had closed (10,875 permanently) and more than 1.4 million franchise jobs were lost since the pandemic began about six months earlier.

Another factor to consider is changing social and technological trends. Even in a down economy, a business catering to a hot new device or market may thrive, while once-successful business based on past trends or technology may fade fast.