Occupation Profile for Retail Salespersons
Sell merchandise, such as furniture, motor vehicles, appliances, or apparel in a retail establishment.
Signficant Points
- Good employment opportunities are expected because of the need to replace the large number of workers who leave the occupation each year.
- Most salespersons work evenings and weekends, particularly during sales and other peak retail periods.
- Employers look for people who enjoy working with others and who have tact, patience, an interest in sales work, a neat appearance, and the ability to communicate clearly.
Earnings
Median hourly earnings of retail salespersons, including commissions, were $9.50 in May 2006. The middle 50 percent earned between $7.81 and $12.83 an hour. The lowest 10 percent earned less than $6.79, and the highest 10 percent earned more than $18.48 an hour. Median hourly earnings in the industries employing the largest numbers of retail salespersons in May 2006 were as follows:
| Automobile dealers | $18.70 |
| Building material and supplies dealers | 11.37 |
| Other general merchandise stores | 8.79 |
| Department stores | 8.70 |
| Clothing stores | 8.53 |
Many beginning or inexperienced workers earn the Federal minimum wage of $5.85 an hour, but many States set minimum wages higher than the Federal minimum. Under Federal law, this wage will increase to $6.55 in the summer of 2008 and to $7.25 in the summer of 2009. 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 thereof. 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 strongly depend 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 comparable to those offered by other employers. 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, banquets, bonuses, and profit-sharing plans to promote teamwork among the sales staff.
Job Outlook
Due to the high level of turnover in this occupation, opportunities are expected to be good. The average projected employment growth in this occupation reflects the expansion of the economy and consumer spending.
Employment change. Employment is expected to grow by 12 percent over the 2006-16 decade, which is about as fast as the average for all occupations. In fact, due to the size of this occupation, retail salespersons will have one of the largest numbers of new jobs arise, about 557,000 over the projections decade. This growth 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. Since retail salespeople must be available to assist customers in person, this is not an occupation that will suffer negative effects from advancements in technology. To the contrary, software that integrates purchase transactions, inventory management, and purchasing has greatly changed retailing, but retail salespersons continue to be essential in dealing with customers. There will also be an increased demand for retail salespersons in warehouse clubs and supercenters, which sell a wide assortment of goods at low prices, since they continue to grow as many consumers prefer these stores.
Despite the growing popularity of electronic commerce, the impact of electronic commerce on employment of retail salespersons is expected to be minimal. Internet sales have not decreased the need for retail salespersons. Retail stores commonly use an online presence to complement their in-store sales; there are a limited number of Internet-only apparel and specialty stores. Retail salespersons will remain important in assuring customers, providing specialized service, and increasing customer satisfaction. Most shoppers continue to prefer to make their purchases in stores, and growth of retail sales will continue to generate employment growth in various retail establishments.
Job prospects. As in the past, employment opportunities for retail salespersons are expected to be good because of the need to replace the large number of workers who transfer to other occupations or leave the labor force each year. Warehouse clubs and supercenters are expected to have excellent job prospects as they continue to grow in popularity with consumers. In addition, many new jobs will be created for retail salespersons as businesses seek to expand operations and enhance customer service.
Opportunities for part-time work should be abundant, and demand will be strong for temporary workers during peak selling periods, such as the end-of-year holiday season. The availability of part-time and temporary work attracts many people seeking to supplement their income.
During economic downturns, sales volumes and the resulting demand for sales workers usually decline. Purchases of costly items, such as cars, appliances, and furniture, tend to be postponed during difficult economic times. In areas of high unemployment, sales of many types of goods decline. However, because many retail salespersons constantly transfer to other occupations in search of better pay or career opportunities, employers often can adjust employment levels simply by not replacing all those who leave.
Employment
Retail salespersons held about 4.5 million jobs in 2006. They worked in stores ranging from small specialty shops employing a few workers to giant department stores with hundreds of salespersons. In addition, some were self-employed representatives of direct-sales companies and mail-order houses. The largest employers of retail salespersons are department stores, clothing and clothing accessories stores, building material and garden equipment and supplies dealers, other general merchandise stores, and motor vehicle and parts dealers.
Because retail stores are found in every city and town, employment is distributed geographically in much the same way as the population.