Retailing is the act of selling products or services to people for their personal, non business use. A retailer is a business that specializes in the act of retailing primarily. Retailing includes all the activities involved in selling goods or services directly to final customers for their personal, non business use. A retailer is any business enterprise whose sales volume comes primarily from retailing.

2. Retailing is the act of selling products or services
to people for their personal, nonbusiness use. A retailer is a
business that specializes in the act of retailing primarily.
Retailing includes all the activities involved in
selling goods or services directly to final customers for their
personal, nonbusiness use. A retailer is any business enterprise
whose sales volume comes primarily from retailing.
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4. RETAIL ORGANIZATIONS:
Achieve many economies of scale, such as greater
purchasing power, wider brand recognition, & better trained
employees. The major types of retail organizations are:
• Corporate Chain Stores:
Two or more outlets that are commonly owned & controlled,
employ central buying & merchandising, & sell similar lines of
merchandise. Their size allows them to buy in large quantities.
Ex: Tower Records, Pottery Barn.
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5. • Voluntary Chain:
Wholesaler-sponsored group of independent retailers engaged in bulk
buying & common merchandising.
Ex: Independent Grocers Alliance.
• Retailer Cooperative:
Independent retailers who set up a central buying organization &
conduct joint promotion efforts.
Ex: Associated Grocers, ACE.
• Consumer Cooperative:
A retail firm owned by its customers. Started by community residents.
Ex: local consumer cooperatives.
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6. • Franchise Organization:
Contractual association between a franchiser & franchisees. Normally
based on some unique product, service or method of doing business.
Prominent in fast foods, video stores, health/fitness centers, auto rentals.
Ex: McDonald’s, Pizza Hut, Taco Bell, Burger King.
• Merchandising Conglomerate:
A free-form corporation that combines several diversified retailing
lines & forms under central ownership , along with some integration of
their distribution-&-management function
Ex: F.W. Woolworth, Kids Mart.
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7. TYPES OF RETAILING
With such a broad definition, the types of retailers are
vast and are categorized based on their different characteristics.
The distinctive characteristics and examples that are most
relevant to me as a consumer are below:
(a)Specialty Stores:
Carry a narrow product line with a deep assortment within the
line. Ex: Athlete’s Foot, Tall Men, The Limited.
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8. (b)Supermarkets:
Relatively large, low-cost, low-margin, high-volume, self-service
operations designed to serve the consumer’s total needs for food,
laundry, & household maintenance products.
Ex: Kroger, Safeway, Food Lion.
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9. (c)Convenience Stores:
Relatively small stores located near residential areas, opened long
hours seven days a week.
Ex: 7-eleven
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10. (d)Factory outlets:
Owned & operated by manufacturers & normally carry the
manufacturer’s surplus, discontinued or irregular goods.
Ex: Ralph Lauren, Liz Claiborne.
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11. (e)Independent off-price retailers:
Owned & run either by entrepreneurs or by division of larger
retail corporations.
Ex: TJX Cos.
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12. (f)Warehouse clubs:
Sell a limited number of brand-name grocery items, appliances,
clothing, etc. at deep discounts. Operate in huge, low-overhead,
warehouse-like facilities. No credit cards. No deliveries.
• Ex: Sam’s Club.
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13. (g)Superstores:
35,000 square feet selling space. Meets consumer’s total needs.
Ex: Petsmart, Home Depot, Staples.
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14. (h)Department Stores:
Carry several product lines.
Ex: Sears, J.C. Penney, Bloomingdale’s.
(i)Off-Price Retailers:
Buy at less than regular wholesale prices & charge consumers
less than retail.
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15. (j)Discount Stores:
Sell standard merchandise at lower prices by accepting lower
margins & selling higher volumes.
Ex: Wal-Mart, H.E.B., Kmart.
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16. Importance of Retail :
Retailing has mirrored the increasing prominence of
the retail industry. Retailing provides necessary service and a
positive contribution to the economy. The importance of retailing
is given below:
• Retailing shapes the lifestyle of people
• Retailing contributes to the economy
• Retailing dominates the supply chain
• Retailing is interdisciplinary
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17. • Retailing offers itself as an academic course.
• Retailers have status as employers.
• Retailers are gatekeepers within the channel of distribution.
• Retailers have scope for expanding internationally.
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19. • Target-market decision: A retailer’s most important decision.
Until the target is not defined, the retailer cannot make
consistent decisions. Retailers should conduct periodic
marketing research to ensure that they are reaching &
satisfying their target customers.
• Price Decision: Key positioning factor & must be decided in
relation to the target market, the product-&-service-
assortment & competition. Retailers must pay attention to
pricing tactics. They will plan markdowns on slower-moving
merchandise.
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20. A growing number of retailers have abandoned “sales pricing” in
favor of everyday low pricing (EDLP). This could lead to lower
advertising costs, greater pricing stability, a stronger store image
of fairness & liability, & higher retail profits.
Promotion Decision: Use promotion tools that reinforce image
position.
Place Decision: Retailers have a choice of locating their stores in:
– Central business districts (downtown). Rents are high.
– Regional shopping centers. Large suburban malls
containing 40-200 stores.
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21. Malls are attractive because of generous parking, one-stop
shopping, restaurants, & recreational facilities.
– Community shopping centers. Smaller malls. Between 20-
40 smaller stores.
– Strip malls. Contain a cluster of stores, usually housed in
one long building.
– A location within a larger store. Certain well known
retailers-McDonald’s, Dunkin Donuts- are locating units in
airports, schools, Wal-Marts.
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