December, 2017 –The retail industry in the U.S. is undergoing disruption which is bringing about a change in how retailers operate. Things are transforming faster than ever when it comes to shopping on-line, the use of mobile purchasing, new forms of payments, and the degree to which consumers are expecting convenience while shopping. According to a survey by PwC, over 32% of consumers buy products at least monthly via their smartphones. Consequently, without an iota of doubt, the retail industry ecosystem is being forced to evolve with the dynamic needs of the customers.
AND, THE SPOTLIGHT IS NOW ON TAX
The most recent disruption in the retail industry is the proposed tax-reform plan by President Donald Trump that offers sweeping cuts in individual and corporate tax rates. The retail industry is expected to be majorly disrupted by this reform.
Presently, the United States has the highest corporate taxes among the OECD countries. According to a 2016 report by Goldman Sachs, major retailers are among the top tax paying companies in the US. The table below depicts some of the top tax-paying retailers include apparel companies Gap (GPS), Under Armour (UAA) and department store Nordstrom (JWN).