Retail is responsible for a great deal of economic activity. Here are some of the multipliers, or economic consequences stemming from retail transactions.
First and foremost, when you purchase something at the retail level, you are purchasing a product that was manufactured and transported to you. It was not created on site. Therefore, the retailer has to pay the actual producer some percentage of the dollar amount you spent. When this happens, money leaves the retail sector and flows to the industries where the actual production and distribution took place.
Second, all retailers purchase inputs from regional suppliers: shop space, utilities, advertising, etc.
Lastly, all retailers must pay their workers, who in turn, spend their money.
A few other benefits of retailers include: leakage plugging, shopping options, visitor attraction, and complementary purchases at other stores. It's rather easy to see how other industries and businesses benefit economically from the existence of retailers.
It's quite easy to go on, but in summary, Retail is Good!
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