Retail
Essay Preview: Retail
Report this essay
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a “retailer” buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term “retailer” is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.
Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.
Contents
[hide]
* 1 Etymology
* 2 Types of retail outlets
* 3 Retail pricing
* 4 Transfer mechanism
* 5 Second hand retail
* 6 Sales techniques
* 7 Customer service
* 8 Retail Sales
* 9 Consolidation
* 10 Bibliography
* 11 See also
* 12 Notes
* 13 External links
[edit] Etymology
The Apple Store retail location on the Magnificent Mile in Chicago.
The worlds only Garmin retail location is located on the Magnificent Mile in Chicago.
Retail comes from the Old French word tailer (compare modern French retailler), which means “to cut off, clip, pare, divide” in terms of tailoring (1365[citation needed]). It was first recorded as a noun with the meaning of a “sale in small quantities” in 1433[citation needed] (from the Middle French retail, “piece cut off, shred, scrap, paring”).[2] Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel, respectively) also refers to the sale of small quantities of items.
[edit] Types of retail outlets
San Juan de Dios Market in Guadalajara, Jalisco
Inside a supermarket in Russia
A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world.
In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains.
Retail is usually classified by type of products as follows:
* Food products
* Hard goods (“hardline retailers”) – appliances, electronics, furniture, sporting goods, etc.
* Soft goods – clothing, apparel, and other fabrics.
There are the following types of retailers by marketing strategy:
* Department stores – very large stores offering a huge assortment of “soft” and “hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service.
* Discount stores – tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands.
* Supermarkets – sell mostly food products;
* Warehouse stores – warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee;
* Variety stores or “dollar stores” – these offer extremely low-cost goods, with limited selection;
* Demographic – retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals).
* Mom-And-Pop : is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder.
* Specialty stores: A typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores.
* General store – a rural store that supplies the main needs for the local community;
* Convenience stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases.
* Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats.