August 2023
Smart Retail Stores in Nevada: An Economic Powerhouse in Disguise
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MALL RETAIL STORES, NESTLED IN THE HEART OF NEVADA, FROM Las Vegas Boulevard to the tranquil streets of rural areas, are more than just quaint places for commerce. They represent a formidable yet often overlooked force in Nevada’s economy, contributing significantly in terms of employment, tax revenue, community development, and innovation. As of 2020, small businesses in Nevada represented 99.1% of all firms, according to the U.S. Small Business Administration Office of Advocacy. These businesses, including small retail stores, employed 41.8% of the state’s private workforce. The scale of employment becomes even more impressive when narrowed down to the retail sector. Small businesses in the retail sector accounted for about 20% of the total private employment in the state, underlining their role as vital job creators. Nevada’s Gross State
By Bryan Wachter
Bryan Wachter Product (GSP) also receives a hefty contribution from the retail sector. In 2019, retail trade accounted for approximately 14.5% of the state’s GSP, amounting to around $20 billion. Given the substantial presence of small businesses, a considerable part of this output likely comes from small retail stores. Besides direct employment and GSP contribution, the economic footprint of small retail stores extends to tax revenues. Nevada’s sales tax rate in 2021 stood at 6.85%, with some localities adding as much as 1.53% on top of that. Retail stores, as final
points of sale for consumer goods, contribute significantly to these revenues. Furthermore, retail businesses paid out $3.5 billion in wages in 2019, with a significant portion of this coming from small retail stores considering their employment reach. However, the economic impact of small retail stores goes beyond the measurable numbers. These businesses enhance community development and identity. Often, they serve as social gathering points, fostering a sense of community cohesion Continued on page 2
INSIDE Industry Updates.....................2 Small Business, Big Impact: Nevada’s Stake in Local Politics.............................3 Back-to-School Spending to Reach $528 Million Statewide..................................4 Nevada’s Call to Action: Retail Leaders as Polirical Catalysts.....................8 Pro Group Captive Management Services Sweeps Nationwide Awards....9