Retailing(unit18)

Retailing is selling goods and services to the ultimate consumer. Retailing includes all transactions in which the buyer intends to consume the product through personal, family or household use. Retailers, organizations that sell products primarily to ultimate consumers, are important and the most expensive links in the channel of distribution because they are customers for wholesalers and producers. Retail institutions provide place, time and possession utilities.

Retail stores are often classified according to width of product mix and depth of product lines. The major types of retail stores are department stores, variety stores, hypermarkets, supermarkets, discount sheds, warehouse clubs, specialty shops, convenience stores, discounters, markets and catalogue showrooms.

Specialty retailers offer substantial assortments in a few product lines.

Non-store retailing is the selling of goods or services outside the confines of a retail facility. Forms of non-store retailing include: in-home retailing (selling via personal contacts with consumers in their own homes), telemarketing (direct selling of goods and services by telephone), the Internet, automatic vending (selling through machines), mail order and catalogue retailing (selling by description because buyers usually do not see the actual product until it arrives in the mail).

Franchising is an arrangement whereby a supplier grants a dealer the right to sell products in exchange for some type of consideration. Retail franchises are of three general types 1) a manufacturer may authorize a number of retail stores to sell a certain brand name item; 2) a producer may license distributors to sell a given product to retailers; 3) a franchisor may supply brand names, techniques or other services instead of a complete product.

To increase sales and store patronage, retailers must consider several strategic issues. First, he may provide a convenient location. Second, he often guarantees and services the merchandise he sells. Third, the retailer helps to promote the product through displays, advertising or sales people. Fourth, the retailer can finance the customer by extending credit.