Study Finds Retail Industry is Key Pillar of Illinois’ Economy
Analysis shows the retail sector generates $112 billion in economic investment annually and is the state’s largest employer, representing one out of four workers in Illinois
SPRINGFIELD — The Illinois Retail Merchants Association (IRMA) today unveiled the results of a study examining the economic impact of the retail industry in Illinois, which found retail directly contributes more than $112 billion in economic investment annually – more than 10 percent of the state’s total Gross Domestic Product.
The analysis, the first of its kind in Illinois history, also found the retail sector is the state’s largest private sector employer, with 1.3 million people working in retail – representing one out of every four workers in Illinois. Retail helps generate $7.3 billion income and sales tax revenue each year, which supports public safety, infrastructure, education and other important programs. All told, retail is the second largest revenue generator for the State of Illinois and the largest revenue generator for local governments.
“From our largest cities to our rural villages, retailers large and small serve as vital pillars of our state and local economies,” said Rob Karr, president and CEO of the Illinois Retail Merchants Association. “This study shows how retail impacts the daily lives of every resident of Illinois, not only by providing jobs and access to important goods, but also by generating billions of dollars in tax revenue that support important state and local programs we all rely on. Illinois’ success is tied to the strength of the retail sector.”
Overall, Illinois’s retail sector generated a combined direct and indirect total sales impact of $441.0 billion, supporting 2.4 million jobs. The breadth and depth of the retail sector includes but is not limited to food and drinking establishments, motor vehicle and parts dealers, sporting goods and book retailers, pharmacy and health retailers, furniture and home stores, building material and garden supply centers, clothing and jewelry vendors, and fuel stations/convenience stores.
Notably, the study found that retail is an industry in which everyone, regardless of credentials, can find a viable career path. Across the retail sector, most entry-level jobs require a high school diploma or less. This employment accessibility is vital in Illinois, where 35 percent of adults aged 25 and older have a high school diploma or less.
“From day one, I’ve been laser-focused on empowering the businesses that drive Illinois’ economy and uplift our working families – and this study confirms just how crucial those businesses are. The retail industry stands as a powerhouse in our state, creating jobs, driving economic growth, and supporting the essential services that benefit our communities,” said JB Pritzker, Governor of Illinois. “Our continued commitment to this vital industry is paying off, and Illinois is stronger because of it.”
The study was conducted by the University of Cincinnati Economics Center, which provides unbiased, non-partisan economic data, and was funded by the Illinois Department of Commerce and Economic Opportunity. Additional study details can be found at www.irma.org.
“The retail sector is an essential part of our state’s economy, and retail workers help make that possible,” said Kristin Richards, Director of the Illinois Department of Commerce and Economic Opportunity (DCEO). “DCEO, along with our workforce program partners across Illinois, will continue to provide support to retailers looking to hire skilled workers and raise awareness of these job opportunities.”
The economic analysis follows the 2024 launch of “We Are Retail,” a promotional campaign created by IRMA to share the stories of independent retailers across the state through videos, photographs, blogs, social media, and paid advertisements. The effort is designed to raise awareness of the impact retailers have on our lives and in our communities, as well as the many rewarding career paths available in the industry. Since its launch, the We Are Retail campaign has featured dozens of retailers throughout Illinois with a new retailer spotlighted weekly.
“By connecting important economic data with the personal stories of retailers across the state, we can better understand the key role retail serves in our communities,” said Sarah Shupenus, Executive Director of the IRMA Foundation. “Too often, retail can be overlooked. Our goal is to highlight and support the businesses that anchor our neighborhoods, while inspiring the next generation of retail entrepreneurs.”
About the Illinois Retail Merchants Association (IRMA)
One of the largest state retail organizations in the United States, IRMA serves as the voice of retail and the business community in state government. Founded in 1957, IRMA represents more than 23,000 stores of all sizes and merchandise lines. From the nation’s largest retailers to independent businesses in every corner of the state, merchants count on IRMA to fight for the best possible environment in which to do business in Illinois.
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