Retail salespersons

Occupational Outlook Handbook, 2004-05 Edition

U.S. Department of Labor | Bureau of Labor Statistics | Bulletin 2540

Retail Salespersons

Whether selling shoes, computer equipment, or automobiles, retail salespersons assist customers in finding what they are looking for and try to interest them in buying the merchandise. They describe a product’s features, demonstrate its use, or show various models and colors. For some sales jobs, particularly those involving expensive and complex items, retail salespersons need special knowledge or skills. For example, salespersons who sell automobiles must be able to explain the features of various models, information about warranties, the meaning of manufacturers’ specifications, and the types of options and financing available.

Consumers spend millions of dollars every day on merchandise and often form their impression of a store by evaluating its sales force. Therefore, retailers stress the importance of providing courteous and efficient service in order to remain competitive. When, for example, a customer wants an item that is not on the sales floor, the salesperson may check the stock room, place a special order, or call another store to locate the item.

In addition to selling, most retail salespersons—especially those who work in department and apparel stores—make out sales checks; receive cash, checks, and charge payments; bag or package purchases; and give out change and receipts. Depending on the hours they work, retail salespersons may have to open or close cash registers. This work may include counting the money in the register; separating charge slips, coupons, and exchange vouchers; and making deposits at the cash office. Salespersons often are held responsible for the contents of their registers, and repeated shortages are cause for dismissal in many organizations. (Cashiers, who have similar job duties, are discussed elsewhere in the Handbook.)

Salespersons also may handle returns and exchanges of merchandise, wrap gifts, and keep their work areas neat. In addition, they may help stock shelves or racks, arrange for mailing or delivery of purchases, mark price tags, take inventory, and prepare displays.

Frequently, salespersons must be aware of special sales and promotions. They also must recognize security risks and thefts and know how to handle or prevent such situations.

Most salespersons in retail trade work in clean, comfortable, well-lighted stores. However, they often stand for long periods and may need supervisory approval to leave the sales floor.

The Monday-through-Friday, 9-to-5 workweek is the exception rather than the rule in retail trade. Most salespersons work evenings and weekends, particularly during sales and other peak retail periods. Because the holiday season is the busiest time for most retailers, many employers restrict the use of vacation time to some period other than Thanksgiving through the beginning of January.

The job can be rewarding for those who enjoy working with people. Patience and courtesy are required, especially when the work is repetitious and the customers are demanding.

Retail salespersons held about 4.1 million wage and salary jobs in 2002. 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 accessories stores, building material and garden equipment and supplies dealers, and motor vehicle dealers.

This occupation offers many opportunities for part-time work and is especially appealing to students, retirees, and others seeking to supplement their income. However, most of those selling “big-ticket” items, such as cars, jewelry, furniture, and electronic equipment, work full time and have substantial experience.

Because retail stores are found in every city and town, employment is distributed geographically in much the same way as the population.

There usually are no formal education requirements for this type of work, although a high school diploma or equivalent is preferred. Employers look for people who enjoy working with others and who have the tact and patience to deal with difficult customers. Among other desirable characteristics are an interest in sales work, a neat appearance, and the ability to communicate clearly and effectively. The ability to speak more than one language may be helpful for employment in communities where people from various cultures tend to live and shop. Before hiring a salesperson, some employers may conduct a background check, especially for a job selling high-priced items.

In most small stores, an experienced employee or the proprietor instructs newly hired sales personnel in making out sales checks and operating cash registers. In large stores, training programs are more formal and are usually conducted over several days. Topics generally discussed are customer service, security, the store’s policies and procedures, and how to work a cash register. Depending on the type of product they are selling, employees may be given additional specialized training by manufacturers’ representatives. For example, those working in cosmetics receive instruction on the types of products the store has available and for whom the cosmetics would be most beneficial. Likewise, salespersons employed by motor vehicle dealers may be required to participate in training programs designed to provide information on the technical details of standard and optional equipment available on new models. Because providing the best service to customers is a high priority for many employers, employees often are given periodic training to update and refine their skills.

As salespersons gain experience and seniority, they usually move to positions of greater responsibility and may be given their choice of departments in which to work. This often means moving to areas with potentially higher earnings and commissions. The highest earnings potential usually is found in selling big-ticket items, although such a position often requires the most knowledge of the product and the greatest talent for persuasion.

Opportunities for advancement vary in small stores. In some establishments, advancement is limited because one person—often the owner—does most of the managerial work. In others, some salespersons are promoted to assistant managers.

Traditionally, capable salespersons without college degrees could advance to management positions. Today, however, large retail businesses usually prefer to hire college graduates as management trainees, making a college education increasingly important. Despite this trend, motivated and capable employees without college degrees still may advance to administrative or supervisory positions in large establishments.

Retail selling experience may be an asset when one is applying for sales positions with larger retailers or in other industries, such as financial services, wholesale trade, or manufacturing.

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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. In addition, many new jobs will be created for retail salespersons. Employment is expected to grow about as fast as the average for all occupations through the year 2012, reflecting rising retail sales stemming from a growing population. 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 turnover among retail salespersons is high, employers often can adjust employment levels simply by not replacing all those who leave.

Despite the growing popularity of electronic commerce, Internet sales have not decreased the need for retail salespersons. Retail stores commonly use an online presence just to complement their in-store sales—there are very few Internet-only apparel and specialty stores. Retail salespersons will remain important in assuring customers that they will receive specialized service and in improving customer satisfaction, something Internet services cannot do. Therefore, the impact of electronic commerce on employment of retail salespersons will be minimal.

The starting wage for many retail sales positions is the Federal minimum wage, which was $5.15 an hour in 2002. In areas where employers have difficulty attracting and retaining workers, wages tend to be higher than the legislated minimum.

Median hourly earnings of retail salespersons, including commission, were $8.51 in 2002. The middle 50 percent earned between $7.08 and $11.30 an hour. The lowest 10 percent earned less than $6.18, and the highest 10 percent earned more than $16.96 an hour. Median hourly earnings in the industries employing the largest numbers of retail salespersons in 2002 were as follows:

Automobile dealers	$18.25
Building material and supplies dealers	10.41
Department stores	8.12
Other general merchandise stores	7.84
Clothing stores	7.77

Compensation systems vary by type of establishment and merchandise sold. Salespersons receive hourly wages, commissions, or a combination of wages and commissions. Under a commission system, salespersons receive a percentage of the sales that 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. Employers may use incentive programs such as awards, banquets, bonuses, and profit-sharing plans to promote teamwork among the sales staff.

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 upon the type of merchandise.

Information on careers in retail sales may be obtained from the personnel offices of local stores or from State merchants’ associations.

Suggested citation: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2004-05 Edition, Retail Salespersons, on the Internet at http://www.bls.gov/oco/ocos121.htm (visited July 09, 2004).