Retailing

Retail consists of the sale of 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 awholesaler, and then sells smaller quantities to
the end-user. Retail establishments are often called shops or stores. Retailers are at the end of thesupply
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 forbusiness-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 Bibliography

• 10 See also

• 11 Notes
 • 12 External links

[edit]Etymology

The Apple Store retail location on theMagnificent Mile in Chicago.

The world's only Garmin retail location is located on the Magnificent Mile in Chicago.

Retail comes from the Old French word retaillier (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.

 General merchandise store - a hybrid between a department store and

discount store;

 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 (or Kirana Stores as they call them in India): 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 specialty 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.

 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. A classic example is the Metro™ in Bangalore.

 Supermarkets: is a self service store consisting mainly of grocery and

limited products on non food items. They may adopt a Hi-Lo or an EDLP
strategy for pricing. The supermarkets can be anywhere between 20,000-
40,000 square feet. Example: SPAR™ supermarket.

 Malls: has a range of retail shops at a single outlet. They endow with
products, food and entertainment under a roof. Example: Sigma mall and
Garuda mall in Bangalore, Express Avenue in Chennai.

 Category Killers or Category Specialist: By supplying wide assortment in a

single category for lower prices a retailer can "kill" that category for other
retailers. For few categories, such as electronics, the products are
displayed at the centre of the store and sales person will be available to
address customer queries and give suggestions when required. Other
retail format stores are forced to reduce the prices if a category specialist
retail store is present in the vicinity. For example: Pai Electronics™ store
in Bangalore, Tata Croma.

 E-tailers: The customer can shop and order through internet and the
merchandise are dropped at the customer's doorstep. Here the retailers
use drop shipping technique. They accept the payment for the product but
 the customer receives the product directly from the manufacturer or a
wholesaler. This format is ideal for customers who do not want to travel to
retail stores and are interested in home shopping. However it is important
for the customer to be wary about defective products and non secure
credit card transaction. Example: Amazon and Ebay.

 Vending Machines: This is an automated piece of equipment wherein

customers can drop in the money in machine and acquire the products.
For example: Soft drinks vending at Bangalore Airport.

Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what
income level they target.

Other types of retail store include:

 Automated Retail stores are self service, robotic kiosks located in airports,
malls and grocery stores. The stores accept credit cards and are usually
open 24/7. Examples include ZoomShops andRedbox.

 Big-box stores encompass larger department, discount, general

merchandise, and warehouse stores.

 Convenience store - a small store often with extended hours, stocking

everyday or roadside items;

 General store - a store which sells most goods needed, typically in a rural
area;

Retailers can opt for a format as each provides different retail mix to its customers based on their customer
demographics, lifestyle and purchase behaviour. A good format will lend a hand to display products well
and entice the target customers to spawn sales.
A food vendor in India

Adidas store in Tel Aviv, Israel

[edit]Retail pricing

The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or
percentage) to the retailer's cost. Another common technique is suggested retail pricing. This simply
involves charging the amount suggested by the manufacturer and usually printed on the product by the
manufacturer.

In Western countries, retail prices are often called psychological prices or odd prices. Often prices are
fixed and displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can
beprice discrimination, where the sale price is dependent upon who the customer is. For example, a
customer may have to pay more if the seller determines that he or she is willing and/or able to. Another
example would be the practice of discounting for youths, students, or senior citizens.

[edit]Transfer mechanism

There are several ways in which consumers can receive goods from a retailer:
  Counter service, where goods are out of reach of buyers and must be
obtained from the seller. This type of retail is common for small expensive
items (e.g. jewelry) and controlled items like medicine and liquor. It was
common before the 1900s in the United States and is more common in
certain countries.[which?]

 Delivery, where goods are shipped directly to consumer's homes or

workplaces. Mail order from a printed catalog was invented in 1744 and
was common in the late 19th and early 20th centuries. Ordering
by telephone is now common, either from a catalog, newspaper, television
advertisement or a local restaurant menu, for immediate service
(especially for pizza delivery). Direct marketing,
including telemarketing and television shopping channels, are also used to
generate telephone orders. Online shopping started gaining significant
market share in developed countries in the 2000s.

 Door-to-door sales, where the salesperson sometimes travels with the

goods for sale.

 Self-service, where goods may be handled and examined prior to

purchase
[edit]Second hand retail

See also: Charity shop

Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates goods to the shop
to be sold. In give-away shops goods can be taken for free.

Another form is the pawnshop, in which goods are sold that were used as collateral for loans. There are
also "consignment" shops, which are where a person can place an item in a store and if it sells, the person
gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the
established shop gives the item exposure to more potential buyers.

[edit]Sales techniques

Behind the scenes at retail, there is another factor at work. Corporations and independent store owners
alike are always trying to get the edge on their competitors. One way to do this is to hire
amerchandising solutions company to design custom store displays that will attract more customers in a
certain demographic. The nation's largest retailers spend millions every year on in-
storemarketing programs that correspond to seasonal and promotional changes. As products change, so
will a retail landscape. Retailers can also use facing techniques to create the look of a perfectly stocked
store, even when it is not.
A destination store is one that customers will initiate a trip specifically to visit, sometimes over a large
area. These stores are often used to "anchor" a shopping mall or plaza, generating foot traffic, which is
capitalized upon by smaller retailers.

[edit]Customer service

According to the bookDiscovery-Based Retail,[3] customer service is the "sum of acts and elements that
allow consumers to receive what they need or desire from your retail establishment." It is important for a
sales associate to greet the customer and make himself available to help the customer find whatever he
needs. When a customer enters the store, it is important that the sales associate does everything in his
power to make the customer feel welcomed, important, and make sure he leave the store satisfied. Giving
the customer full, undivided attention and helping him find what he is looking for will contribute to the
customer's satisfaction.

[edit]Retail Sales

US Retail Sales 1992-2010

The Retail Sales report is published every month. It is a measure of consumer spending, an important
indicator of the US GDP. Retail firms provide data on the dollar value of their retail sales and inventories.
A sample of 12,000 firms is included in the final survey and 5,000 in the advanced one. The advanced
estimated data is based on a subsample from the US CB complete retail & food services sample.[4]

It has been published by the US Census Bureau since 1951.

[edit]Bibliography

 Krafft, Manfred; Mantrala, Murali K. (eds.) (2006). Retailing in the 21st

century: current and future trends. New York: Springer
Verlag. ISBN 3540283994.
[edit]See also
 List of department stores by country

 Point of sales
  Point of sales terminal

 Retail concentration

 Retail design

 Retail software

 Retailing in India

 Shopping mall

 Specialist store

 Stand-alone store

 Store manager

 Supermarket

 Tuangou

 Variety store

 Visual merchandising

 Wardrobing
[edit]Notes

Wikibooks has a book on the

topic of

Marketing

Look
up retailing or retail inWiktionar
y, the free dictionary.

1. ^ "Distribution Services". Foreign Agricultural Service. 2000-02-09.

Retrieved 2006-04-04.

2. ^ Harper, Douglas. "retail". Online Etymology Dictionary. Retrieved 2008-

03-16.

3. ^ Philip H. Mitchell 2008, Discovery-Based Retail, Bascom Hill Publishing

Group ISBN 9780979846793

4. ^ US Census Bureau Retail sales Retail SalesRetail Sales Definition

[edit]External links
 ECRoPEDIA - Free Global Collection of Retail/FMCG Best practices by
ECR Community
  Investopedia.The Industry Handbook: The Retailing Industry

 Retail Sales figures

Categories: Retailing

• Log in / create account

• Article
• Discussion
• Read
• Edit
• View history
Top of Form

Bottom of Form
• Main page
• Contents
• Featured content
• Current events
• Random article
• Donate to Wikipedia
Interaction
• Help
• About Wikipedia
• Community portal
• Recent changes
• Contact Wikipedia
Toolbox
Print/export
Languages
• ‫العربية‬
• বাংলা
• Català
• Česky
• Dansk
• Deutsch
• Español
• Français
• Gaeilge
• Gàidhlig
• 한국어
• िहनदी
• Bahasa Indonesia
• Íslenska
• Italiano
• ‫עברית‬
• ಕನನಡ
• Latviešu
• Lietuvių
• Bahasa Melayu
• Nederlands
• 日本語
• Norsk (bokmål)
• ਪੰਜਾਬੀ
• Polski
• Português
• Русский
• Shqip
• Sicilianu
• Simple English
• Slovenčina
• Suomi
• Svenska
• Türkçe
• Українська
• ‫יִידיש‬
• 中文

• This page was last modified on 8 March 2011 at 12:05.

• Text is available under the Creative Commons Attribution-ShareAlike License;

additional terms may apply. See Terms of Use for details.

Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit
organization.
• Contact us

• Privacy policy

• About Wikipedia

• Disclaimers