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Retail
From Wikipedia, the free encyclopediaJump to: navigation, search"Retail stores" redirects here. For the comic strip by Norm Feuti, see Retail (comic strip).
This article includes a list of references, but its sources remain unclear because it has insufficientinline citations. Please help to improve this article by introducing more precise citations. (March 2012)
Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of anintegrated system called the supply chain. A retailer purchases goods orproducts in large quantities frommanufacturers directly or through a wholesale, and then sells smaller quantities to the consumerfor a profit.Retailing can be done in either fixed locations like stores or markets, door-to-dooror by delivery. Retailingincludes subordinated services, such as delivery. The term "retailer" is also applied where a service providerservices the needs of a large number of individuals, such as a public. Shops may be on residential streets, streets
with few or no houses or in a shopping mall. Shopping streets may be forpedestrians only. Sometimes ashopping street has a partial or full roofto protect customers fromprecipitation. Online retailing, a type ofelectronic commerce used forbusiness-to-consumer(B2C) transactions and mail order, are forms of non-shopretailing.
Shopping generally refers to the act ofbuying products. Sometimes this is done to obtain necessities such as foodand clothing; sometimes it is done as a recreational activity. Recreational shopping often involves windowshopping (just looking, not buying) and browsing and does not always result in a purchase.
Contents
1 Etymology2 Types of retail outlets3 Global Top Five Retailers4 Operations
4.1 Retail pricing4.2 Staffing4.3 Transfer mechanisms
5 Second-hand retail6 Challenges7 Sales techniques8 Customer service9 Statistics for national retail sales
9.1 United States9.2 CE region
10 Consolidation11 See also12 Further reading
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13 References14 External links
[edit] Etymology
The world's only Garmin retail
storefront is located on theMagnificent Mile in Chicago.
Retail comes from the Old French word tailler, which means "to cut off, clip, pare, divide" in terms of tailoring(1365). It was first recorded as a noun with the meaning of a "sale in small quantities" in 1433 (from the Middle
French retail, "piece cut off, shred, scrap, paring").[1] Like in French, the word retailin both Dutch and Germanalso refers to the sale of small quantities of items.
[edit] Types of retail outlets
San Juan de Dios Market in Guadalajara,Jalisco
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Inside a supermarket in Russia
Walnut Market in Katra, Jammu &Kashmir, India
A marketplace is a location where goods and services are exchanged. The traditional market square is a citysquare where traders set up stalls and buyers browse the merchandise. This kind of market is very old, andcountless such markets are still in operation around the whole world.
In some parts of the world, the retail business is still dominated by small family-run stores, but this market isincreasingly being taken over by large retail chains.
Retail is usually classified by type of products as follows:
Food productsHard goods or durable goods ("hardline retailers") - appliances, electronics, furniture, sporting goods, etc.Goods that do not quickly wear out and provide utility over time.Soft goods or consumables - clothing, apparel, and other fabrics. Goods that are consumed after one useor have a limited period (typically under three years) in which you may use them.
There are the following types of retailers by marketing strategy:
Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear aresemblance to a collection of specialty stores. A retailer of such store carries variety of categories andhas broad assortment at average price. They offer considerable customer service.Discount stores - tend to offer a wide array of products and services, but they compete mainly on priceoffers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell lessfashion-oriented brands.
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Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steelshelves; warehouse clubs charge a membership fee;Variety stores - these offer extremely low-cost goods, with limited selection;Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthyindividuals).Mom-And-Pop : is a retail outlet that is owned and operated by individuals. The range of products arevery selective and few in numbers. These stores are seen in local community often are family-run
businesses. The square feet area of the store depends on the store holder.Specialty stores: A typical speciality store gives attention to a particular category and provides high levelof service to the customers. A pet store that specializes in selling dog food would be regarded as aspecialty store. However, branded stores also come under this format. For example if a customer visits aReebok or Gap store then they find just Reebok and Gap products in the respective stores.General store - a rural store that supplies the main needs for the local community;Convenience stores: is essentially found in residential areas. They provide limited amount of merchandiseat more than average prices with a speedy checkout. This store is ideal for emergency and immediate
purchases as it often works with extended hours, stocking everyday;Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating
cost is comparatively less than other retail formats.Supermarkets: is a self-service store consisting mainly of grocery and limited products on non food items.They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between
20,000 and 40,000 square feet (3,700 m2). Example: SPAR supermarket.Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainmentunder a roof.Category killers or Category Specialist: By supplying wide assortment in a single category for lower pricesa retailer can "kill" that category for other retailers. For few categories, such as electronics, the productsare displayed at the centre of the store and sales person will be available to address customer queries and
give suggestions when required. Other retail format stores are forced to reduce the prices if a categoryspecialist retail store is present in the vicinity.E-tailers: The customer can shop and order through internet and the merchandise are dropped at thecustomer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the
product but the customer receives the product directly from the manufacturer or a wholesaler. This formatis ideal for customers who do not want to travel to retail stores and are interested in home shopping.However it is important for the customer to be wary about defective products and non secure credit cardtransaction. Example: Amazon, Pennyful and eBay.Vending Machines: This is an automated piece of equipment wherein customers can drop the money in themachine and acquire the products.
Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what incomelevel they target.
Other types of retail store include:
Automated Retail stores are self-service, robotic kiosks located in airports, malls and grocery stores. Thestores accept credit cards and are usually open 24/7. Examples include ZoomShops and Redbox.Big-box stores encompass larger department, discount, general merchandise, and warehouse stores.
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Retailers can opt for a format as each provides different retail mix to its customers based on their customerdemographics, lifestyle and purchase behaviour. A good format will lend a hand to display products well andentice the target customers to spawn sales.
[edit] Global Top Five Retailers
Worldwide Top Five Retailers[2]
Retail
Sales RankCompany
Country
of Origin
2010 group
revenue (US
$mil)
1 Walmart US $421,849
2 Carrefour France $121,519
3 Tesco UK $94,244
4MetroAG
Germany $89,311
5 Kroger US $82,189
[edit] Operations
[edit] Retail pricing
Thepricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (orpercentage) to the retailer's cost. Another common technique is suggested retail pricing. This simply involvescharging the amount suggested by the manufacturer and usually printed on theproduct by the manufacturer.
In Western countries, retailprices are often calledpsychological prices or odd prices. Often prices are fixed anddisplayed on signs or labels. Alternatively, when prices are not clearly displayed, there can bepricediscrimination, where the sale price is dependent upon who the customer is. For example, a customer may haveto pay more if the seller determines that he or she is willing and/or able to. Another example would be the
practice of discounting for youths, students, or senior citizens..
[edit] Staffing
Because patronage at a retail outlet varies flexibility in scheduling is desirable. Employee scheduling software issold which, using known patterns of customer patronage, more or less reliably predicts the need for staffing forvarious functions at times of the year, day of the month or week, and time of day. Usually needs vary widely.Conforming staff utilization to staffing needs requires a flexible workforce which is available when needed butdoes not have to be paid when they are not,part-timeworkers; as of 2012 70% of retail workers in the UnitedStates were part-time. This may result in financial problems for the workers, who while they are required to beavailable at all times if their work hours are to be maximized, may not have sufficient income to meet their family
and other obligations.[3]
[edit] Transfer mechanisms
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There are several ways in which consumers can receive goods from a retailer:
Counter service, where goods are out of reach of buyers and must be obtained from the seller. This typeof retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor.It was common before the 1900s in the United States and is more common in certain countries like
India.[which?]
Delivery, where goods are shipped directly to consumer's homes or workplaces. Mail orderfrom a
printed catalog was invented in 1744 and was common in the late 19th and early 20th centuries. Orderingby telephone is now common, either from a catalog, newspaper, television advertisement or a localrestaurant menu, for immediate service (especially forpizza delivery). Direct marketing, includingtelemarketingand television shopping channels, are also used to generate telephone orders. started gainingsignificant market share in developed countries in the 2000s.Door-to-doorsales, where the salesperson sometimes travels with the goods for sale.Self-service, where goods may be handled and examined prior to purchase
[edit] Second-hand retail
See also: Charity shop
Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates goods to the shop to besold. In give-away shops goods can be taken for free.
Another form is thepawnshop, in which goods are sold that were used as collateral for loans. There are also"consignment" shops, which are where a person can place an item in a store and if it sells, the person gives theshop owner a percentage of the sale price. The advantage of selling an item this way is that the established shopgives the item exposure to more potential buyers.
[edit] Challenges
To achieve and maintain a foothold in an existing market, a prospective retail establishment must overcome thefollowing hurdles:
Regulatory barriers includingRestrictions on real estate purchases, especially as imposed by local governments and against "big-
box" chain retailers;Restrictions on foreign investment in retailers, in terms of both absolute amount of financing
provided and percentage share of voting stock (e.g., common stock) purchased;Unfavorable taxation structures, especially those designed to penalize or keep out "big box" retailers (see"Regulatory" above);Absence of developed supply chain and integrated IT management;High competitiveness among existing market participants and resulting lowprofit margins, caused in part
byConstant advances in product design resulting in constant threat of product obsolescence and pricedeclines for existing inventory; and
Lack of properly educated and/or trained work force, often including management, caused in part by
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Lack ofeducational infrastructure enabling prospective market entrants to respond to the abovechallenges.
[edit] Sales techniques
Behind the scenes at retail, there is another factor at work. Corporations and independent store owners alike arealways trying to get the edge on their competitors. One way to do this is to hire a merchandising solutions
company to design custom store displays that will attract more customers in a certain demographic. The nation'slargest retailers spend millions every year on in-store marketing programs that correspond to seasonal and
promotional changes. As products change, so will a retail landscape. Retailers can also use facing techniques tocreate the look of a perfectly stocked store, even when it is not.
A destination store is one that customers will initiate a trip specifically to visit, sometimes over a large area. Thesestores are often used to "anchor" a shopping mall or plaza, generating foot traffic, which is capitalized upon bysmaller retailers.
[edit] Customer serviceCustomer service is the "sum of acts and elements that allow consumers to receive what they need or desire fromyour retail establishment." It is important for a sales associate to greet the customer and make himself available tohelp the customer find whatever he needs. When a customer enters the store, it is important that the salesassociate does everything in his power to make the customer feel welcomed, important, and make sure he leavesthe store satisfied. Giving the customer full, undivided attention and helping him find what he is looking for will
contribute to the customer's satisfaction.[4]
[edit] Statistics for national retail sales[edit] United States
The United States retail sector features the largest number of large, lucrative retailers in the world. A 2012Deloitte report published in STORESmagazine indicated that of the world's top 250 largest retailers by retailsales revenue in fiscal year 2010, 32% of those retailers were based in the United States, and those 32%
accounted for 41% of the total retail sales revenue of the top 250. [5]
U.S. Monthly Retail Sales, 1992
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2010
Since 1951, the U.S. Census Bureau has published the Retail Sales report every month. It is a measure ofconsumer spending, an important indicator of the US GDP. Retail firms provide data on the dollar value of theirretail sales and inventories. A sample of 12,000 firms is included in the final survey and 5,000 in the advancedone. The advanced estimated data is based on a subsample from the US CB complete retail & food services
sample.[6]
[edit] CE region
In 2011 the grocery market in six Central European (CE) countries was worth nearly 107bn, 2.8% more thanthe previous year when expressed in local currencies. The increase was generated foremost by the discountstores and supermarket segments, and was driven by the skyrocketing prices of foodstuffs. This information is
based on the latest PMR report entitled Grocery retail in Central Europe 2012[7]
[edit] Consolidation
Among retailers and retails chains a lot of consolidation has appeared over the last couple of decades. Between1988 and 2010, worldwide 40'788 mergers & acquisitions with a total known value of 2'255 bil. USD have
been announced.[8] The largest transactions with involvement of retailers in/from the United States have been: the
acquisition ofAlbertson's Inc. for 17 bil. USD in 2006,[9] the merger between Federated Department Stores Inc
with May Department Stores valued at 16.5 bil. USD in 2005[10] - now Macy's, and the merger between Kmar
Holding Corp and Sears Roebuck & Co with a value of 10.9 bil. USD in 2004.[11]
[edit] See also
List of department stores by countryPoint of salesPoint of sales terminalRetail concentrationRetail designRetail softwareShopping mallSpecialist storeStand-alone storeStore managerTuangouVisual merchandisingWardrobing
Types of store or shop:
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Big-box storeChain storeConfectionery storeConvenience storeDepartment storeDiscount storeGeneral store
Grocery storeHardware storeHealth food storeHobby storeHypermarketLiquor store
NewsagentOnline shoppingOutlet store
Pet storePop-up retailSpecialty storeState storeStore-within-a-storeSupermarketSurplus storeSurvival storeToy storeVariety store
Warehouse clubWarehouse store
[edit] Further reading
Krafft, Manfred; Mantrala, Murali K. (eds.) (2006).Retailing in the 21st century: current and futuretrends. New York: Springer Verlag. ISBN3-540-28399-4.
[edit] References
1. ^ Harper, Douglas. "retail". Online Etymology Dictionary. Retrieved 2008-03-16.2. ^"2011 Top 250 Global Retailers". Retrieved in January 2012.3. ^ Steven Greenhouse (October 27, 2012). "A Part-Time Life, as Hours Shrink and Shift". The New York
Times. Retrieved October 28, 2012.4. ^ Philip H. Mitchell 2008,Discovery-Based Retail, Bascom Hill Publishing Group ISBN 978-0-
9798467-9-35. ^ Deloitte, Switching Channels: Global Powers of Retailing 2012, STORES, January 2012, G20.
http://en.wikipedia.org/wiki/Retail#cite_ref-5http://en.wikipedia.org/wiki/Special:BookSources/9780979846793http://en.wikipedia.org/wiki/Retail#cite_ref-4http://www.nytimes.com/2012/10/28/business/a-part-time-life-as-hours-shrink-and-shift-for-american-workers.htmlhttp://en.wikipedia.org/wiki/Retail#cite_ref-NYT102812_3-0http://www.stores.org/2011/Top-250-Listhttp://en.wikipedia.org/wiki/Retail#cite_ref-DS_2-0http://en.wikipedia.org/wiki/Online_Etymology_Dictionaryhttp://www.etymonline.com/index.php?term=retailhttp://en.wikipedia.org/wiki/Retail#cite_ref-1http://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=18http://en.wikipedia.org/wiki/Special:BookSources/3-540-28399-4http://en.wikipedia.org/wiki/International_Standard_Book_Numberhttp://en.wikipedia.org/w/index.php?title=Retail&action=edit§ion=17http://en.wikipedia.org/wiki/Warehouse_storehttp://en.wikipedia.org/wiki/Warehouse_clubhttp://en.wikipedia.org/wiki/Variety_storehttp://en.wikipedia.org/wiki/Toy_storehttp://en.wikipedia.org/wiki/Survival_storehttp://en.wikipedia.org/wiki/Surplus_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Store-within-a-storehttp://en.wikipedia.org/wiki/Alcoholic_beverage_control_statehttp://en.wikipedia.org/wiki/Specialty_storehttp://en.wikipedia.org/wiki/Pop-up_retailhttp://en.wikipedia.org/wiki/Pet_storehttp://en.wikipedia.org/wiki/Outlet_storehttp://en.wikipedia.org/wiki/Online_shoppinghttp://en.wikipedia.org/wiki/Newsagenthttp://en.wikipedia.org/wiki/Liquor_storehttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Hobby_storehttp://en.wikipedia.org/wiki/Health_food_storehttp://en.wikipedia.org/wiki/Hardware_storehttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/General_storehttp://en.wikipedia.org/wiki/Discount_storehttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/Confectionery_storehttp://en.wikipedia.org/wiki/Chain_storehttp://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Anchor_store -
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6. ^US Census Bureau Retail sales Retail SalesRetail Sales Definition7. ^ Grocery retail in Central Europe 2012 Retail in Central Europe
8. ^[full citation needed] "Statistics on Mergers & Acquisitions (M&A) - M&A Courses | CompanyValuation Courses | Mergers & Acquisitions Courses". Imaa-institute.org. Retrieved 2012-11-02.
9. ^[full citation needed] [dead link]
10. ^[full citation needed] "Press Release - Investor Relations - Macy's Inc". Phx.corporate-ir.net. Retrieved2012-11-02.
11. ^[full citation needed] "Sears Holdings Press Releases". Searsholdings.com. Retrieved 2012-11-02.
[edit] External links
Look up retailingorretail in Wiktionary, the free dictionary.
Wikibooks has a book on the topic of:Marketing
ECRoPEDIA - Free Global Collection of Retail/FMCG Best practices by ECR CommunityInvestopedia.The Industry Handbook: The Retailing Industry
National Retail Federation (U.S.-based trade association)2011 Top 250 Global Retailers
v
t
e
Media manipulation
Context
BiasCrowd psychologyDeceptionDumbing downFalse balanceHalf-truthsMachiavellianismMediaObfuscationPersuasion
Alternative mediaBoycottCivil disobedience
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Activism
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Urban legendVirus
Marketing
BrandingLoyaltyProductProduct placementPublicityResearchWord of mouth
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InfotainmentManagingNarcotizing dysfunctionPseudo-eventSensationalismTabloid journalism
Political
campaigning
AdvertisingAstroturfing
Attack adCanvassingCharacter assassinationCharm offensiveElection promisesLawn signsManifestos
Name recognitionNegativePush pollingSmear campaignWedge issue
Propaganda
BandwagonCrowd manipulationDisinformationFear mongeringFraming
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IndoctrinationLoaded language
National mythologyTechniques
Psychological
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Public relations
Cult of personalityDoublespeakNon-apology apologyReputation managementSlogansSound bitesSpinTransferUnderstatementWeasel words
Sales
Cold callingDoor-to-doorPhonePricingProduct demonstrationsPromotional merchandisePromotion
Retail
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