Home>Business Glossary >What is Retail?

What is Retail?

Get a clear understanding of the term Retail, types of retail businesses and latest trends.
HomeredyFynd
AR: The Winning Strategy For Beauty Industry

<first>What is Retail?<first>Retail is a broad term that encompasses the sales and distribution of goods and services to consumers. In today's world, the majority of sales activities revolve around retail businesses. Thus it is even more critical to understand and comprehend the concepts of the term Retail.

By definition, Retail is the sale of goods or services by a business to the ultimate consumers through multiple sales channels to earn a profit. A retail transaction involves the direct sale of a small quantity of goods to the final consumers. So, if you purchased anything today or yesterday for your consumption, you participated in Retail.
The word retail has been derived from the old French verb 'tailier', which means to cut off a piece, clip, pare or divide in tailoring. Thus, at present, it refers to the sale of goods in small quantities to the consumers.

<head-two>Before we dive deep into the concept of Retail, let us first get familiarised with the common terms associated with Retail<head-two>

<first>Retailing<first> Retailing is defined as the set of activities involved in selling goods and services to the final consumers for their consumption. There is a common misconception that retailing involves only the sale of goods in stores. However, it also includes the sale of services offered at restaurants, salons, repair centers, etc. It is undoubtedly the most popular method of conducting business.


<first>Retailers<first> A Retailer or a Merchant is an individual or a business entity that sells goods such as groceries, clothing, stationery, cars, etc., to the ultimate consumers through various distribution channels in return for a profit. Retailers are responsible for satisfying the demand of consumers identified through the supply chain. They typically do not manufacture the products themselves, instead, they purchase them in bulk either directly through the manufacturer or the wholesaler and later sell them in small quantities to the final consumers.


<first>Retail Stores<first> A retail store is where the retailer sells his products to the customers. It represents a single point of purchase directly to the final consumer of the product. It may be a brick-and-mortar store like the store of Godrej, Puma, or an online shopping website like eBay, Flipkart, etc.

<first>Types of Retail Stores:<first> There are various types of retail models in the industry, each having its pros and cons. The most common types of retail models are:
<head-two>Convenience Stores:<head-two> A convenience store known as the corner shop is a small retail business that stocks and sells a wide range of everyday items such as groceries, milk, confectioneries, soft drinks, newspapers, etc. These stores are usually located near residential areas where customers can make purchases at their comfort and convenience.
<head-two>Specialty Stores:<head-two> Speciality stores focus on specific product categories such as furniture, children's clothes, office supplies, etc. Think of purchasing a product of a particular variety or from a particular brand, and that's a specialty store where you go for it.
<head-two>Supermarkets:<head-two> A supermarket is a self-service store that sells various products of different categories like household items, food & beverages, fashion commodities, etc. They are usually larger than convenience stores.
<head-two>Hypermarkets / Big-Box Stores:<head-two> A hypermarket is a big-box store that combines a supermarket and a department store. It carries a wide range of products under one roof, including groceries and general merchandise. They usually offer goods in larger quantities than retail outlets.
<head-two>Discount Stores:<head-two> Discount retailers offer a wide range of products at lower prices than the actual or supposed maximum retail price. They depend on bulk purchasing and efficient distribution of goods for keeping the operations cost-effective.
<head-two>Department Stores:<head-two> A department store offers a wide range of consumer goods under different sections or areas of the store, with each region specializing in a particular product category. The different departments may be dedicated to clothes, groceries, shoes, jewelry, household items, etc.
<head-two>Ecommerce Store / Online Stores / Webstores:<head-two> Online stores sell goods or services to the customers via the internet through their website. Customers make online payments for the purchase, or they may opt for the payment on delivery option. The stores deliver the products directly from the warehouses to the customers at their homes, workplaces, or wherever they want.

<first>Retail Supply Chain<first> The retail supply chain is the process of transportation of the final goods to the ultimate consumers. It encompasses all the activities involved in acquiring the raw materials for the production of goods to their delivery at the consumer's hands. The retail supply chain consists of manufacturers, wholesalers, retailers, and end consumers.
Each of these entities plays an essential role in completing the retail supply chain.
<head-two>Manufacturers:<head-two> Manufacturers purchase raw materials and turn them into finished goods.
<head-two>Wholesalers:<head-two> Wholesalers purchase the goods from manufacturers in bulk and supply them to retailers and different cities or locations.
<head-two>Retailers:<head-two> Retailers sell the goods in small quantities to the ultimate consumers at higher prices or what we call the manufacturer's suggested retail price.
<head-two>Consumers:<head-two> These are the end-users of the products produced by the manufacturers. Consumers are the ones who generate demand for the products and initiate the supply chain.

<first>Ready for retailing?<first> Now, since you have a thorough knowledge of what Retail is and what it encompasses, you are all set to start your own retail business. Stay a step ahead of your competitors by starting with an online retail business. When it comes to e-commerce platforms, there are many options available in the market. Some of them may be available at a low price, or some may offer different features. Fynd Platform offers an optimum combination of these: the ultimate solution for omnichannel retail business. It allows you to create your own e-commerce website at an affordable rate and with several features like delivery assistance, payment gateway integration, user and API documentation, marketplace catalog generation, data insights with tracking and analytics, etc.

Subscribe

Subscribe to our monthly newsletter for important updates and inspirations from Fynd Platform
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Related Articles

Share this Article