Introduction to Retailing (CURM 101)

Definition of Retailing -A retailer is a business that sells goods and services to consumers for their personal or family use. -A retailer is the final business in a Distribution channel that links manufacturers with consumers. -Manufacturers make products and sell them to retailers or Wholesalers . Wholesalers buy products from manufactures & resell these products to consumers. -Retailing is the set of business activities that adds a value to the goods and services sold to consumers for their personal or family use. Manufacturer Wholesaler Retailer Consumer

 Wholesalers and retailers may perform many of the same functions but wholesalers satisfies retailers needs while retailers direct their efforts to satisfying the needs of ultimate consumers. Some wholesalers like Mohammed Mussa and Jaggers are both retailers and wholesalers

Functions performed by Retailers

1.PROVIDING AN ASSORTMENT OF PRODUCTS AND SERVICES -To maximise efficiency , many manufacturers would like make one basic type of item & sell the entire type of item & sell the entire of inventory to as few buyers as possible, yet many final consumers want to choose from a variety of goods & services & purchase a limited quantity. -Retailers collect an assortment of goods & services from various sources , buy them in large quantities & offer to sell them in small quantities to consumers. This is the sorting process -As a result , each manufacturer or wholesaler become more efficient , and final consumers are pleased with the selection available to them. -This enables buyers to do one stop shopping & also exercise choice from a variety of goods available.

The retailers role in the sorting process

Manufacturer Brand A Wholesaler X Manufacturer Brand B Manufacturer Brand C Wholesaler Y Manufacturer Brand D Manufacturer Brand E Wholesaler Z Manufacturer Brand F Customer for Brand F Customer for brand B Customer for brand A

Customer for brand C

Customer for brand D

Customer for Brand E

2. Breaking Bulk
-To reduce transportation costs, manufacturers & wholesalers typically ship cases of frozen dinners or cartons of blouses to retailers. -retailers then offer the products in small quantities tailored to individual consumers & household consumption patterns. This is called breaking bulk.

3. Holding Inventory
-Retailers keep inventory so that products will be available when consumers want them, & thus consumers can keep as much smaller inventory of products at home because they know the retailers will have the products available when they need more. -By maintaining an inventory , retailers provide a benefit to consumers by reducing the cost of storing products. -Consumers can thus use their monies for Investment purposes instead of holding inventory.

4. Providing Services
-Retailers provide services that make it easier for customers to buy and use products. -They offer credit to consumers. -Also, they provide additional informational information about products to consumers. -Retailers provide customer services such as gift wrapping, delivery, & installation.

5.Completion of Transaction
Retailers strive to fill orders promptly & accurately 6.Retailers also assist small wholesalers & manufacturers by: -transportation -storing -marking -advertising -Pre-paying for merchandise

7. Communication
-Retailers also have a function of communication both with their manufactures & w/ salers . -Communication with customers is enhanced via advertisements , salespeople & store displays, where consumers are informed about the availability and characteristics of goods & services , store hours , sales & so on. -Manufacturers , Wholesalers & others are informed about: -sales forecasts -delivery delays to retailers -Customer complaints -Defective items -Inventory turnover ( By style, colour , size) -Many goods & services have been modified due to feedback to suppliers

Economic significance of Retailers

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Employment-A substantial population of any country is employed in the retail industry. Retailing raises the standards of living of people through the sorting process. The sorting process increases variety so that consumers can enjoy from a wider choice of products. Moreover the products are brought closer to the consumers & one stop shopping is enhanced. All leisure activities are provided by retailers. Retail activities contributes to Gross Domestic Product They contribute to Gvnt revenue by paying taxes. Gvnt Revenue is important for Economic Development. Retailers help in the regeneration of towns , districts & regions. Generation of foreign currency