Retail is the combination of activities involved in selling or renting consumer goods and services directly to end consumers for their personal or household use. In addition to selling, retailing includes activities as diverse as purchasing, advertising, data processing, and inventory management. This article explains the meaning of retail trade and its etymology. Understand the meaning and constituents of the retail industry and the role it plays in the economy of any nation.
Retail is the combination of activities involved in selling or renting consumer goods and services directly to end consumers for their personal or household use. In addition to selling, retailing includes activities as diverse as purchasing, advertising, data processing, and inventory management.
What do we mean by retail?
According to Phillip Kotler, “Retail includes all activities involved in the sale of goods or services to end consumers for personal, non-business use.” A retailer or retail store is a business enterprise whose sales volume comes primarily from retail. A retailer may primarily sell goods such as a grocery store or bookstore, or a retailer may primarily sell services such as a beauty salon or theater. Retailers are commercial enterprises that offer goods and services directly to consumers. In most, but not all, retail outlets are primarily concerned with the sale of merchandise. Typically, these companies sell individual units or small groups of products to a large number of customers.
However, a minority of retailers also derive revenue from rentals rather than the outright sale of goods (as in the case of businesses that offer furniture or gardening tools for hire) or a combination of products and services (as in the case of a clothing store company that might offer free alterations with the purchase of a suit). Retail trade is therefore a combination of activities consisting of selling or renting consumer goods or services directly to end customers for their personal or household use. In addition to selling, retailing includes activities as diverse as purchasing, advertising, data processing, labor management, and inventory maintenance.
The etymology of “Retail”:
Retail comes from the old French word tailer (compare modern French retailer), which means “to cut, to cut, to pare, to divide” in terms of tailoring (1365). It was first recorded as a name with the meaning of “sale in small quantities” in 1433 (from Middle French detail, “piece cut, shredded, scrap, peeled”). Some of the “cutting” functions performed by retailers include sorting and storing, packaging and selling in small quantities to end consumers, thereby adding value.
Difference between shopping and retail:
Shopping refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; Sometimes it is a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.
Retail business :
Retail is the sale of goods and services by individuals or businesses to the end user. Retailers perform specific activities such as anticipating customer desires, sourcing materials based on anticipated demand, acquiring market information, and financing.
Globe: Retail is the largest private sector in the world and the main driver of the economy. It represents nearly 10% of the GDP of most developed countries. Global retail is huge – $6.6 billion and much of it is organized. Retail trade is predominant in developed countries like USA, UK etc. The industry is also a major employer for most producers – up to 16% in the United States, 15% in Brazil, 12% in Poland and 7% in China. Typically, the top 250 global retailers have combined sales of approximately US$4 trillion. The top ten retailers account for $1.2 trillion, or about 30% of those sales.
United States of America: In the United States, the retail industry employs approximately 22 million people and generates over $3 trillion in sales annually. The retail industry in the United States has the largest number of large, lucrative retailers in the world. A 2012 Deloitte report published in STORES magazine indicated that of the world’s top 250 retailers by retail revenue in fiscal year 2010, 32% of those retailers were based in the United States and that 32% accounted for 41% of total retail sales. turnover of the first 250. The retail industry is a significant part of the overall United States economy and in 2005, retail establishments accounted for 18% of all non-farm private sector employment and had sales of $3.2 trillion of dollars. Many retail niches are characterized by a healthy population of small businesses, and the vast majority of retail employees in the United States work in establishments with fewer than 20 employees. There is also a huge concentration of large retail companies in the United States – 10% of food and general merchandise retail companies account for over 40% of all sales. Some of these large retail chains eliminate all vendors and buy directly from manufacturers, which makes the supply chain very efficient.
Japan: In Japan, on the other hand, small businesses and stores rule the retail sector. The wholesale channel is relatively much wider. Merchandise must pass through three or four members before reaching the store. This results in reduced efficiency and higher labor and distribution costs. In Japan, 20% of the workforce is employed in retail compared to 10% in the United States.
Europe: In Europe, there is a high concentration of retail sales in certain countries such as the United Kingdom and Germany. In the UK, over 80% of retail food sales are made by 5 major chains. In Southern Europe, the market is more fragmented and small traditional family stores dominate the markets.
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Creation Date Friday, June 22, 2012 Hits 43541