The Nature of Retailing

The Nature of Retailing

Definition of Retailing

  • Retailing involves the sale of goods or services directly to consumers.
  • It includes businesses of all sizes, from small independent shops to multinational corporations.
  • Retailers act as an intermediary between producers and end-users or consumers.

Types of Retail Locations

  • There are numerous types of retail locations, which can be physical (e.g. high street shops, shopping centres) or online.
  • Retail parks are large out-of-town shops that feature multiple retailers in one location.
  • Convenience stores are small retailers that are located close to residential areas and provide a range of everyday items.
  • Market stalls are small, temporary retail outlets that can sell a variety of merchandise.
  • E-commerce stores operate exclusively on the internet, without a physical outlet.

Types of Retailers

  • Retailers can be classified into various types such as independent, chain, franchise, and department stores.
  • An independent retailer usually owns one outlet and manages its day-to-day operations.
  • Chain retailers own and operate multiple outlets, usually under the same brand.
  • Franchise retailers operate under a parent company’s brand, using their business model and guidelines.
  • Department stores sell a wide range of products in different sectors under one roof.

Retail Marketing

  • Retailers use many marketing strategies to attract customers including sales promotions, product placements, advertisements and loyalty schemes.
  • The choice of these strategies depends on target customers, type of product, and competitive environment.

Emerging Trends in Retailing

  • Retailers are now shifting towards multi-channel retailing, incorporating both in-store and online shopping experiences.
  • Sustainable and ethical sourcing of products is becoming a priority for many retailers.
  • The use of technology in retailing, including self-service kiosks and contactless payments, is increasing.
  • Personalisation and customisation of products and services are trends shaping the future of retailing.