Basics of Retailing
Concept of Retail
- Retail involves selling small quantities of goods directly to customers based on their needs.
- A retail store is a business enterprise focused on retail sales volume.
- Retailing is the process of selling products to final consumers by an individual or a firm.
Functions of a Retailer
Retailers provide essential services, ensuring products are available in the right quantity, place, and time, adding value for customers. The key functions include:
- Breaking bulk into smaller quantities:
- Producers ship goods in large quantities to reduce transportation costs.
- Retailers unpack and distribute products in smaller quantities to suit customer needs.
- Providing Product & Service Information:
- Retailers educate customers about product features and functions.
- Salespersons guide buyers with knowledge about different brands.
- Offering Customer Services:
- Retailers provide services like free home delivery, gift wrapping, credit facilities, and after-sales support.
- Enhancing Shopping Experience:
- Creates a comfortable and pleasant shopping environment through lighting, space, music, and courteous employees.
- A positive retail ambiance increases customer footfall.
- Providing Customer Feedback to Producers:
- Retailers understand consumer preferences through direct interaction.
- Feedback helps manufacturers improve products and services.
Basics of Retailing
Essential Requirements of Retailers
A successful retailer should:
- Choose a strategic location to attract customers.
- Stock relevant goods based on customer demand.
- Offer competitive pricing while maintaining quality.
- Be financially stable to sustain operations.
- Manage inventory wisely to avoid over-stocking or under-stocking.
- Stay updated with market trends and industry changes.
- Utilize effective displays like window and counter arrangements to boost sales.
- Ensure accessibility and be readily available for customers.
Retailer’s Services to Customers
- Sell goods in small quantities at reasonable prices, catering to individual needs.
- Fulfill consumer demand by maintaining necessary stock availability.
- Provide essential product information to assist buyers in making informed decisions.
- Guide customers on replacement policies for damaged goods.
- Displaying and Demonstrating Products: Attracts customers by showcasing goods effectively.
- Credit Facility: Provided to regular and trustworthy customers for convenience.
To sum up
- Key Intermediary in distribution channels.
- Wholesale Definition: Selling goods for business use or resale, not directly to consumers.
- Wholesaler’s Role: Acts as a link between manufacturers/producers and retailers.
- Bulk Selling: Wholesalers typically deal in large quantities before goods reach retailers.
Growth of Retail Sector in India:
- The retail sector is experiencing rapid growth.
- Previously, customers purchased goods from kirana shops, mobile vendors, and mandis.
- Improvement in the standard of living has led to an expansion of the retail sector.
- More departmental stores have emerged, fostering the organised retail sector.