BASICS OF RETAILING Page 12
Concept of Retail
Session 1: Basics of Retailing
Hetail refers as a business activity to sell the goods in small quantities as per the
requirements of the customers. Retailing includes allthe activities involved in selling goods or services tothe final consumers for personal or non-business use.A retailer or retail store is any business enterprisewhose sales volume comes primarily from retailing.
In simple words, any organization selling to finalConsumers whether it is a manufacturer, wholesaleror retailer is doing retailing. It does not matter howgoods or services are sold - in a store, on the street,or through internet. Re tailing, thus, may beunderstood as the final step in the distribution ofmerchandise, for consumption by the end users. Ineasy terms, any individual or firm that sells productsto the final consumers is performing the function of retailing.
The Functions of Retailer
The role ofa retailer is to provide the products that he needs in the required quantityat the required place and at right time. This creates real added value or utility to thecustomers. This comes from four different perspectives; they are,
• first, is the form utility of a product that is acceptable to the customer,
For example, boxed detergent can be produced in liquid form, which may bemore advantageous for certain consumer requirements.
second, is the time utility keeping the store open when the consumers preferto shop, For example, a daily newspaper home delivered so that the customerhas it available immediately when he/she awakes for the day.
third, is the place utility being availableat a convenient location, For example, if itis a retail establishment, people should beprovided with easy access. Mail ordercompanies make it easy for customers toshop whenever they want and then havetheir purchases delivered to them.
• fourth, is ownership utility when theproduct is sold. Additional consumer valuecreated by allowing easy transferring of a
product's ownership. For example, various time payment, leasing, and creditpurchase strategies can be important in makinga product more attractive to a
Consunner
The Retailer's Services to the Customers
lo supply the goods in small quantities to consumers at reasornable prices.To practice personal relations, cOurtesy, attentiveness and honesty.• To anticipate the consumer demand and make available such stock.• To guide the consumer in buying and providing necessary information.
To provide replacement facility for the damages.
• To display and demonstrate the qoods to attract the customers.
To offer credit facility to reqular and reliable customers.Essential requirements of Retailers
Establish the shop in a place where Customers are attracted.
Stock the goods which are needed by the customers.
• Compete in price and quality of goods to be sold.
• Be financially sound and cautious of over-stocking or under-stocking.
• Up-date with trends in the market and its position.
Ensure window display and counter display to promote sales.
• Always be accessible to the customers.
At this point, it is essential to understand theterm wholesale as both wholesalers andretailers are intermediaries in distributionchannels. Wholesale involves in selling toindividuals or organizations for their businessuse or for resale purpose In other words,wholesalers buy and resell merchandise toretailers and other merchants and not to theconsumers. Normally, wholesalers sell large
quantities. They take the title of the goods.
They also provide credit facility to the retailers. A wholesaler acts as an intermediarybetween the manufacturer and the retailer.
Exercise: Assignment
1. Group Activity: Role play on functions of retailer
Objective: This activity will be facilitated by your teacher or trainer, At the endof this activity, you will be able to understand the functions of retailer.
