Retail

Retail is the electric power.

Shops may be on residential streets, streets with few or no houses or in a mail order, are forms of non-shop retailing.

recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

Contents

[edit] Etymology

The Chicago.

The world’s only 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). It was first recorded as a noun with the meaning of a “sale in small quantities” in 1433 (from the Middle French retail, “piece cut off, shred, scrap, paring”).[1] 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

Inside a supermarket in Russia

Walnut Market in India

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 or durable goods (“hardline retailers”) – appliances, electronics, furniture, sporting goods, etc. Goods that do not quickly wear out and provide utility over time.
  • Soft goods or consumables – clothing, apparel, and other fabrics. Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them.

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.
  • warehouse clubs charge a membership fee;
  • Variety 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 as it often works with extended hours, stocking everyday;
  • Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats.
  • 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 and 40,000 square feet (3,700 m2). Example: SPAR supermarket.
  • Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof.
  • 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.
  • 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, Pennyful and eBay.
  • Vending Machines: This is an automated piece of equipment wherein customers can drop the money in the machine and acquire the products.

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:

  • Redbox.
  • Big-box stores encompass larger department, discount, general merchandise, and warehouse stores.

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] Global Top Five Retailers

Worldwide Top Five Retailers[2]
Retail Sales Rank Company Country of Origin 2010 group revenue (US $mil)
1 Walmart US $421,849
2 Carrefour France $121,519
3 Tesco UK $94,244
4 Metro AG Germany $89,311
5 Kroger US $82,189

[edit] Operations

[edit] Retail pricing

The product by the manufacturer.

In Western countries, retail 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] Staffing

Because patronage at a retail outlet varies flexibility in scheduling is desirable. Employee scheduling software is sold which, using known patterns of customer patronage, more or less reliably predicts the need for staffing for various functions at times of the year, day of the month or week, and time of day. Usually needs vary widely. Conforming staff utilization to staffing needs requires a flexible workforce which is available when needed but does not have to be paid when they are not, part-time workers; as of 2012 70% of retail workers in the United States were part-time. This may result in financial problems for the workers, who while they are required to be available at all times if their work hours are to be maximized, may not have sufficient income to meet their family and other obligations.[3]

[edit] Transfer mechanisms

There are several ways in which consumers can receive goods from a retailer:

  • which?]
  • shopping channels, are also used to generate telephone orders. 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

Some shops sell second-hand goods. In the case of a give-away shops goods can be taken for free.

Another form is the 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] Challenges

To achieve and maintain a foothold in an existing market, a prospective retail establishment must overcome the following hurdles:

  • Regulatory barriers including
    • Restrictions on real estate purchases, especially as imposed by chain retailers;
    • Restrictions on foreign investment in retailers, in terms of both absolute amount of financing provided and percentage share of voting stock (e.g., common stock) purchased;
  • Unfavorable taxation structures, especially those designed to penalize or keep out “big box” retailers (see “Regulatory” above);
  • Absence of developed supply chain and integrated IT management;
  • High profit margins, caused in part by
    • Constant advances in product design resulting in constant threat of product obsolescence and price declines for existing inventory; and
  • Lack of properly educated and/or trained work force, often including management, caused in part by

[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 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 leaves 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.[4]

[edit] Statistics for national retail sales

[edit] United States

The United States retail sector features the largest number of large, lucrative retailers in the world. A 2012 Deloitte report published in STORES magazine indicated that of the world’s top 250 largest retailers by retail sales revenue in fiscal year 2010, 32% of those retailers were based in the United States, and those 32% accounted for 41% of the total retail sales revenue of the top 250.[5]

U.S. Retail Sales, 1992–2010

Since 1951, the U.S. Census Bureau has published the Retail Sales report 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.[6]

[edit] CE region

In 2011 the grocery market in six Central European (CE) countries was worth nearly €107bn, 2.8% more than the previous year when expressed in local currencies. The increase was generated foremost by the discount stores and supermarket segments, and was driven by the skyrocketing prices of foodstuffs. This information is based on the latest PMR report entitled Grocery retail in Central Europe 2012[7]

[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 [11]

[edit] See also

Types of store or shop:

[edit] Further reading

  • Krafft, Manfred; Mantrala, Murali K. (eds.) (2006). Retailing in the 21st century: current and future trends. New York: Springer Verlag. ISBN 3-540-28399-4.

[edit] References

  1. ^ Harper, Douglas. “retail”. Online Etymology Dictionary. http://www.etymonline.com/index.php?term=retail. Retrieved 2008-03-16.
  2. ^ “2011 Top 250 Global Retailers”. Retrieved in January 2012. http://www.stores.org/2011/Top-250-List.
  3. ^ Steven Greenhouse (October 27, 2012). “A Part-Time Life, as Hours Shrink and Shift”. The New York Times. http://www.nytimes.com/2012/10/28/business/a-part-time-life-as-hours-shrink-and-shift-for-american-workers.html. Retrieved October 28, 2012.
  4. ^ Philip H. Mitchell 2008, Discovery-Based Retail, Bascom Hill Publishing Group ISBN 978-0-9798467-9-3
  5. ^ Deloitte, Switching Channels: Global Powers of Retailing 2012, STORES, January 2012, G20.
  6. ^ US Census Bureau Retail sales Retail SalesRetail Sales Definition
  7. ^ Grocery retail in Central Europe 2012 Retail in Central Europe
  8. full citation needed]. Retrieved 2012-11-02.
  9. dead link]
  10. full citation needed]. Retrieved 2012-11-02.
  11. full citation needed]. Retrieved 2012-11-02.

[edit] External links



This article uses material from the Wikipedia article Retail, which is released under the Creative Commons Attribution-Share-Alike License 3.0.

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