Types Of Retail
Types Of Retail
Retail is basically the act of selling consumer products or services directly to consumers through multiple retail outlets to make a profit. Retailers meet demand identified through a distribution system. Retailers use various techniques for promoting their products, such as advertising and marketing strategies, to attract customers. The process includes sales promotion, wherein the retail establishment forms an alliance with other retailers. The alliance, in turn, disseminates sales promotions to consumers, who will likely purchase the product.
Distribution plays a major role in retailing, especially in the case of large retailers. It allows large retailers to gain access to various forms of consumer goods from different manufacturers. This leads to cost savings because the retailer does not need to purchase products from various vendors in order to stock inventory. Instead, the distribution chain provides it with products at wholesale prices and retailers benefit from the economies of scale.
Distribution may take the form of salespeople, or sometimes it takes the form of warehouses and distribution depots where goods are stocked directly by the retailer. A major benefit of retailing lies in the direct relationship between the retailer and the customer. Retail stores establish a long-term relationship with their consumers by building loyalty among customers. The major aim of a retail store is to sell the most number of products at the lowest cost to maximize profits. Direct selling plays an important role in ensuring that retailers remain in business and make a significant profit.
Department stores, on the other hand, are primarily retail businesses that sell goods directly to consumers. Most department stores have a single store location where individuals can buy all sorts of merchandise. Department stores typically have separate clothing departments, electronics departments, and beauty supply departments. Many department stores also have snack bars and eating areas. These activities help in making customers stay in the store longer, resulting in higher profit margins.
Lastly, there are wholesale and discount drug stores. Like department stores, wholesale drug stores usually have just one location and many have few branches outside of the main store. They have more limited profit margins than other types of retail stores and they generally specialize in branded products. Some drug stores offer exclusive brands from famous manufacturers. Other drug stores offer supplies for prescription drugs.
Different types of retailers exist depending on the nature of the product. There are retail sales of food, apparel, health and beauty, and small items such as books, videos, and CDs. There are wholesale retailers that sell goods directly to consumers through their own inventory or warehouses. And there are wholesalers, who either supply retailers with inventory that retailers then sell to customers, or arrange for retailers to purchase goods that the retailer can sell at a discount.