What is retail?

Answers

Retail is the sale of goods or services to end users, who consumes the purchase for personal use and not for resale. The transaction itself can occur in a brick-and-mortar store, online, catalog, or direct sales. As long as the end user is the buyer who intends to use that product, it will be considered as a retail transaction.

A typical retail supply chain consists of four key players: Manufacturers who produce the goods, wholesalers who purchase the finished goods from the manufacturers and resell them to retailers in large bulk quantities, retailers who then sell those purchased goods in small quantities to the end-user, and consumers who buy the goods from the retailer for personal use.

Retail - selling goods and services to the end user. In a broader sense, retail should not only consider any trading point, but the principle of organizing trade. Under the definition of retail falls any work with any buyer who can freely come and buy goods.

A retailer is a retail company - whether it is a supermarket, a clothing store, a car dealership, a bank selling services to private customers.

Retail point - the point of retail sale, shop. The very first example that fits the definition of retail is the well-known market and stores. The most ancient form of retail is street retail, or street trading.

Retail uses special retail trade technologies:

  • placement of retail enterprises according to certain location rules;
  • the offer of the grouped assortment of goods of constant demand;
  • use of commercial equipment;
  • trade marketing;
  • minimum of sales personnel;
  • self-service of customer ;
  • accounting, purchasing and storage of goods;
  • Optimization of logistics, retail space;

and etc

.
A distinctive feature of retail is the wide variety of goods and services offered in one place. All this reduces the cost of servicing each client, reduces costs, and thus increases competitiveness. The use of these retail technologies allows you to sell the product at retail in large volumes, comparable to the volume of sales of wholesale.

Network retail - a network of single-format (less often multi-format) stores united by one owner, a unified system of logistics, procurement, a single commodity policy. All this allows to further reduce costs, which means offering the buyer prices for products is much lower than in non-network outlets. Low price and constant availability of the basic assortment, availability of outlets, network retail attracts a large number of consumers and receives a large profit at the expense of turnover.

In large network hyper- and supermarkets it is customary to make purchases of large volumes about once a week, and consumers prefer to buy goods of daily demand (to buy) in small shops "at home".

Classification of retail. Detailed classification is presented in the note of the marketer "Classification of the network retail", which presents the classification of stores by size and ideology, the classification of stores according to pricing approaches.

Revenue of retail. The basic income of the retailer brings a trade margin for the goods delivered to the retail. However, this is not the only source of income for the retailer. For example, there are additional services paid by the suppliers of products, the income from which also receives retail. The ability to deliver your goods to retail, the ability to place goods on a desired shelf for the supplier, the payment of trade marketing services - all this is "sold" by retailers to product suppliers as a marketing service. Also, retailers earn on promotion-promotions, advertising, sale (lease) of retail space for non-core products.

Retail branding is the creation of a brand in the retail segment. Retail branding is the necessary marketing activity, caused by a tough competitive environment in the retail segment between the owners of retail outlets, network operators of the retail market. The brand in retail is the image in the mind of the buyer of the physical place for shopping.
 

 

Loyverse.town uses cookies. By continuing to browse the site you are agreeing to our cookies policy. Learn more Ok