Question

1. Present a report on how retailing can ensure economic growth of a country. Present an empirical evidence to show how retailing can accelerate economic growth using different dimensions or measures of economic growth

Answer 1

Retail sales are important indicator for economic growth because the consumer spending regulates majority of the economy. The buying and selling of goods and services and its timely delivery demanded by the consumers at competitive and affordable prices is known as retailing. It is the last step to the supply chain. So, the product so produced reaches to the customer as per his demand through the retailer, and when a consumer purchases the product against its monetary value which ultimately participate in economic growth.

Retailing is the backbone of every economy because retailing belongs to a system where small sellers run the complete sale and purchase of the commodities in a short level and long level in the economy. So retailing is the real essence of making the economic growth in a positive sense in the economy.

The whole system of economy and economic production is based on the demand and supply forces in the market and the supply is based on the productivity and the production efficiency of the sectors of the economy which includes primary sector, secondary sector and tertiary sector in the economy. So this is the only reason why retailing is so important to give a real impact and image to raise the production efficiency in the economy.

There are various measures which can be used to measure the retailing as an accelerator in the economy growth.

1. One is the reflection of overall sale in the economy.

2. Another one is the base of wholesale price index and consumer price index in the economy which is based on real sale and purchase of goods and services in the economy.

3. The third one is the overall turnover of productive efficiency which can only be possible by monitoring the overall sales Estimation in the market.