The retail industry is one of the largest and most important drivers of the American economy. According to the U.S. Census Bureau, retail sales in December, 2016, were estimated at a whopping $410 billion. Retail also represents an enormous slice of American employment: More than 42 million jobs are reportedly generated by nearly four million retail establishments across the country. To put that number in perspective, retail supports one in four American jobs.
How are those huge numbers of retail professionals getting compensated? Specifically, how do demographical variables such as geography, gender, age, and education level affect salary figures? Total Retail, a trade publication that follows the retail industry, recently released its 2016 Salary Benchmark Report to answer these questions. In collaboration with its parent company, NAPCO Media, Total Retail conducted a survey of nearly 700 retail executives during a two-week period in June, 2016, to uncover some important insights into the makeup and compensation of those 42 million retail professionals.
Nathan Safran, Director of Research at NAPCO Media
In comparison to women nationwide, who earn 80 cents for every dollar earned by men, women in the retail industry seem to fare better. According to data published in the survey, male and female respondents from virtually all salary ranges earn roughly equal pay. The biggest wage gap between the two genders is among respondents at the upper end of the salary spectrum, those who make between $250,001 and $500,000 annually. (Sixty percent of that echelon was male.) Salary ranges just below that level — $100,001 to $150,000 and $150,001 to $250,000 — are essentially even between men and women, as are executive salaries between $500,001 and $1 million.
According to the study, education does not seem to have a significant effect on salary levels. Among the three lower salary levels — under $35,000; $50,001 to $60,000; and $75,001 to $100,000 — the percentage of respondents who have bachelor degrees does not vary enormously (56 percent, 68 percent, and 67 percent, respectively). And graduate degrees do not seem to have a significant impact on salary levels, except at the highest levels. In many cases, those with only a bachelor’s degree earn even more than their counterparts with graduate degrees.
Age clearly has a major effect on retail salary levels, although much of that differential can be attributed to seniority and time in the industry. Among survey respondents who earn $50,001 to $60,000, 44 percent — the largest percentage — are 25 to 34 years old. Those who earn more generally tend to be older: Half of respondents who earn $500,001 to $1 million are 45 to 54 years old. Likewise, among respondents who make $250,001 to 500,000, the largest number (40 percent) are between 45 and 54 years old.
Last but not least, geography significantly affects salary. Respondents working for companies headquartered in the East North Central region (Illinois, Indiana, Michigan, Ohio, Wisconsin) or the Mid-Atlantic Region (New Jersey, New York, Pennsylvania) typically earn more than their peers in other parts of the country. On the other end of the spectrum, respondents whose companies are headquartered in the West North Central region of the country (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota) have some of the lowest salaries in the industry. Nearly a quarter (24 percent) of respondents from this region earn less than $50,000 a year.
“The Total Retail Salary Benchmark Report provides retail and human resources executives with an unprecedented look into compensation, benefits and opportunities for career advancement in the retail space,” says Nathan Safran, director of research for NAPCO Media and co-author of the study. “The data will help executives ensure they’re compensated fairly, understand trends around benefits and identify how compensation differs by geography and other factors.”
To download the full report, click here.