The Impact of Retail on the Economy

The Impact of Retail on the Economy

Retail is an abbreviation for retail store. Retail is the method of selling products or services directly to consumers through different channels of distribution to make a profit. Retailers meet demand identified by a distribution network. This can be from the sales of merchandise, services or both.

Distribution channels include retail shops and malls, wholesalers and retailers, distributors and importers and online stores. Distribution provides retailers with raw materials and finished goods and ensures that consumers receive them in the right condition at the right time. Distribution also ensures that retailers do not run out of stock of a commodity as it might adversely affect consumer confidence in the retailer. A smooth supply chain system allows retailers to keep inventory levels as low as possible.

End-users are users who buy goods for personal use. Goods purchased for the purpose of personal use are normally bought for a limited period, such as a vacation or holiday. Goods bought for business purposes are usually bought over a longer period of time to satisfy a customer demand. Retailers aim at satisfying the end-user by distributing goods in the most efficient manner possible. In retailing, efficient distribution systems are crucial in ensuring that the end-user does not experience delivery delays, returns or defective goods.

Internet retailing allows for lower overhead costs and faster transactions among the retailers, wholesalers and manufacturers. Internet retailing also enables the retailers to benefit from the low prices that can be afforded by the online market. There is no face-to-face interaction between the customer and the retailer with the only communication being via the internet. Through this, the cost of running a retail operation is reduced and it becomes more profitable to sell merchandise over the internet.

An extensive range of merchandise is available in the retail industry. It offers a wide variety of products including electronic goods, fashion goods, appliances, health and beauty products, home appliances, furniture and many more. There are even some goods that are specialized in particular types of consumer requirements, such as baby products, groceries and even toys. The wide-ranging categories of merchandise available in the retail industry allow the retailers to offer a wide selection of goods for their customers.

The retail industry has benefited greatly from the internet, with improved product information and sales, better distribution systems and more convenient shopping. More people have now taken advantage of being able to make their purchases online as it gives the end-user a wider choice of products and better prices. This has enabled more people to enter the retail sector and the number of retail stores has increased dramatically. The expansion of retail transactions has made it easier for the retailers to meet the demands of the end-user.