Min. order price$300
Min. order price$300
A retailer company is an enterprise that is engaged in the process of selling goods or services to end consumers through various channels, such as stores, supermarkets, online stores and others. Also includes a wide range of activities such as inventory management, marketing, customer service and more.
This understanding is key to various aspects of economics and business.
For entrepreneurs and businesses:
- Development of effective sales and marketing strategies.
- Optimization of investments in retail sales channels.
- Creation of unique customer offers and competitive advantages.
For consumers:
Access to a wide range of goods and services.
Ability to compare prices and product characteristics.
Improving the level of service and convenience of shopping.
For the state and economy:
Promoting the development of the retail sector and increasing retail sales volumes.
- Create jobs and support economic growth.
- Generation of tax revenues to the budget.
Principle of operation
The retailer plays a key role in how goods reach the final consumer from the manufacturer. There are three main participants in the commodity supply chain. What is retail for them?
Manufacturer: These are companies or businesses that create goods, whether in plants, factories or other production sites.
Distributor: They act as intermediaries between manufacturers and retailers. They buy goods wholesale and resell them to retailers.
It is a business that purchases products from distributors and sells them directly to end consumers. The store size or format can vary from large supermarkets to small shops or even online platforms.
The target audience of retail is people who buy goods for their own use, that is, for personal non-commercial use.
What does retail mean and what are its main features? The main feature of this area is the desire of companies to expand their range of products to satisfy all consumer needs. This is manifested in the development of large grocery chains and marketplaces, where you can purchase everything from food to household appliances and furniture.
Profit in retail comes from several sources:
- Trade markup: the difference between the purchase price of a product and its selling price.
- Service and additional services: such as delivery, installation, warranty service and other services provided by retailers.
- Income from non-core activities: for example, rental of retail premises, resale of retail equipment and other operations.
Key retailer expenses include:
Personnel costs: wages, insurance, training, etc. Utilities and electricity costs: maintaining stores and offices, paying bills for electricity, water, heating, etc.
Advertising and marketing costs: to attract customers and increase sales.
To reduce costs and increase competitiveness, retail uses special techniques and technologies.
It is an integral part of modern retail business. It is being implemented into accounting, purchasing and warehousing systems. In conditions of high competition and a dynamic market, it is impossible to quickly and correctly manually track the movement of a large volume of goods. Automation not only saves time, but also reduces the likelihood of errors in accounting for goods.
One of the key points of successful operation of a retail enterprise is assortment analysis. It is important to provide customers with the goods they need and, conversely, to reduce the purchase of products that are sold poorly. To do this, they conduct an ABC analysis of positions and constantly adjust the assortment in accordance with customer needs. In addition, analysis of the assortment allows us to identify new trends in the market.
Aimed at the effective placement of goods on store shelves in order to attract customers' attention to certain brands and products. One of the important tasks of merchandising is not only to attract attention, but also to maximize profits from every square meter of retail space. Professional merchandising helps to increase sales and create a positive impression of the store among customers.
They are an effective tool for retaining customers and increasing the average purchase price. By offering customers various bonuses, discounts and gifts for purchases, retail companies motivate customers to make repeat purchases and choose their store. In addition, the loyalty program allows you to create a positive image of the company and strengthen its position in the market.
As technology advances and consumer preferences change, self-service is becoming increasingly popular in retail. Giving customers the opportunity to fully or partially serve themselves.
Retailers come in a wide range of formats, reflecting the variety of services and products offered to consumers. Depending on the nature of the business and the range of goods, the following categories are distinguished.
Food
This segment includes stores specializing in the sale of food products - from fresh vegetables and fruits to meat, dairy products and frozen prepared foods. This also includes farm produce stores that offer fresh and organic goods.
Daily consumption items
This category includes products used in the daily lives of consumers. This includes medicines, cosmetics, household chemicals, hygiene products, as well as stationery and other items necessary for a comfortable lifestyle.
Durable Products
These are products intended for long-term use. This includes furniture, household appliances, cars, electronics and other goods that the consumer purchases for long-term use.
Art objects
This category includes goods that are not primary consumer goods, but have cultural or aesthetic value. This includes musical instruments, paintings, books and other items designed to satisfy the need for beauty and aesthetics.
Kinds
Retail trade is represented by various types, each of which has its own characteristics and specific customer service. Depending on the method of service, the size of retail space, the technology for placing goods and the method of sale, the following types of retail trade are distinguished:
Grocery and non-grocery retail formats. The grocery retail format is focused on the sale of food and other essential goods. The non-grocery format, in turn, offers consumers various products, such as clothing, shoes, household appliances, etc.
Network retail format. Retail companies own and operate multiple retail locations located in different geographic locations. They often have a single brand, service standards and product range.
Street retail. It consists of retail outlets located on the streets of cities and towns. Includes shops, kiosks, stalls and other retail outlets offering goods and services directly on the streets.
Online retail. It is a retail format based on the use of Internet platforms for the sale of goods and services. Online retail what does this mean? This type of commerce allows consumers to shop directly from home or via mobile devices, providing convenience and accessibility.
Multiple retail formats. Retail companies can simultaneously belong to several types of retail formats. For example, many retail chains sell both food and non-grocery products at the same time, and also have both offline and online points of sale.
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