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. A sale is the act of selling of products or services in return for money or other
compensation. It is an act of completion of a commercial activity. Consumption is a common
concept in economics, and gives rise to derived concepts such as consumer debt. 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. While "business" refers to the value-creating activities of an organization for profit,
commerce means the whole system of an economy that constitutes an environment for business.
Sthe manufacturers who made the finished goods sold to wholesalers, who in turn sell them to
retailers, who then sell them to end users – the "consumers". Retailers are at the end of the
supply chain. A supply chain is a system of organizations, people, technology, activities,
information and resources involved in moving a product or service from supplier to customer.
Supply chain activities transform natural resources, raw materials and components into a finished
product that is delivered to the end customer. In sophisticated supply chain systems, used
products may re-enter the supply chain at any point where residual value is recyclable.
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. Online
retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and
mail order, are forms of non-shop retailing. Electronic commerce, commonly known as e-
commerce or eCommerce, consists of the buying and selling of products or services over
electronic systems such as the Internet and other computer networks. Business-to-consumer
(B2C, sometimes also called Business-to-Customer) describes activities of businesses serving
end consumers with products and/or services.

An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The
transactions that led to the shoes being available for purchase, that is the purchase of the leather,
laces, rubber, etc. However, the sale of the shoe from the shoemaker to the retailer would be
considered a (B2B) transaction.

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 (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 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. 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 and Redbox.
 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.

[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 be price 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 like India.[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
a merchandising 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-store marketing 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

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.[3]

[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] Consolidation
Among retailers and retails chains a lot of consolidation has appeared over the last couple of
decades. Between 1988 and 2010, worldwide 40'788 mergers & acquisitions with a total known
value of 2'255 bil. USD have been announced.[5] The largest transactions with involvement of
retailers in/from the United States have been: the acquisition of Albertson's Inc. for 17 bil. USD
in 2006,[6] the merger between Federated Department Stores Inc with May Department Stores
valued at 16.5 bil. USD in 2005[7] - now Macy's, and the merger between Kmart Holding Corp
and Sears Roebuck & Co with a value of 10.9 bil. USD in 2004[8].

Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to

industrial, commercial, institutional, or other professional business users, or to other wholesalers and
related subordinateAccording to the United Nations Statistics Division, "wholesale" is the resale (sale
without transformation) of new and used goods to retailers, to industrial, commercial, institutional or
professional users, or to other wholesalers, or involves acting as an agent or broker in buying
merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently
physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller
lots.[2] While wholesalers of most products usually operate from independent premises, wholesale
marketing for foodstuffs can take place at specific wholesale markets where all traders are
congregated.d services.[1] In general, it is the sale of goods to anyone other than a standard consumer. In
the banking industry "wholesale" usually refers to wholesale banking, providing tailored services to large
customers, in contrast with retail banking, providing standardized services to large numbers of smaller
customers. Wholesale banking is the provision of services by banks to the likes of large corporate
clients, mid-sized companies, real estate developers and investors, international trade finance
businesses, institutional customers (such as pension funds and government entities/agencies), and
services offered to other banks or other financial institutions. In essence, wholesale banking services
usually involve high value transactions. Retail banking refers to banking in which banking institutions
execute transactions directly with consumers, rather than corporations or other banks. Services offered
include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so
forth.

Often wholesellers are not required to charge their buyers sales tax, though sometimes they may be
required to (or may per discretion) charge a special wholesale tax.