Retail trade is a business activity that is performed; selling goods
directly to the consumers is known as retail trading. It doesn't
provide goods or material to the corporations. It acts as a final
distribution channel in the journey of selling goods from the
manufacturer to the consumer. It doesn't deal with the wholesale or
lump sum amount of goods and services. The shops which use these
retail trading are known as retail outlets of a particular company or
a product. And the persons who perform these trading activities are
nothing but retailers.
The retail trade bridges the gap between manufacturers or
wholesalers and consumers. The trading activity will be performed
in various ways. The consumer can come to the retail store and
purchase his requirements. Also, the orders can be taken from the
phone or online, etc. Retail trading also has some strategies to
provide festival offers, discounts, price reductions while placing
bulk orders, etc.
The business activity of selling items to the final consumer, or
ultimate customer, is known as retail trade. It serves as a link
between wholesalers or manufacturers and the product's end users.
Typically, retailers sell things to consumers in modest amounts for
personal use alone, not for resale or company.
The final phase in the distribution chain is retail. The retailer will
purchase the goods in bulk (big quantities) at a discounted price
from the wholesaler or, in some cases, straight from the producer.
The firm then offers the goods to the ultimate consumers in small
units or quantities at retail prices, profiting in the process.
Types of Retailing Trade
So we call it retail trade when the goods are sold to the final
consumer for personal use. Buying a thing from a store or a
roadside hawker is still retail trade. So how can we categorise the
different retailers we encounter?
We can categorise them by size or ownership modules. One simple
technique is to categorise them as fixed or not.
1. Itinerant Retailers
These are retailers who don't have a set location. Their business is
distinguished by frequent shop relocations. They are retailers even
if they do not have a physical location.
Features
The operation is tiny.
Itinerant retailers also have capital constraints.
They mainly deal in everyday commodities like fruits,
vegetables, milk, toiletries, etc.
These businesses promote client convenience by bringing things
to their doorsteps.
They have low inventory due to frequent relocations.
Types:
Peddlers and Hawkers
Hawkers and peddlers are among the world's oldest retailers. They
transport their stuff via bicycle, hand cart, basket, etc.
They set up shop in markets and on streets. So they travel to
contact as many clients as possible. Hawkers don't usually offer
branded goods, but rather non-standardized everyday items.
Cheap Jacks
Unlike hawkers, cheap jacks have a shop, but it is temporary. They
move these temporary shops if better possibilities arise elsewhere.
Market Traders
These are small shops that only open on market days. So if the
market is only open Mondays and Wednesdays, they only trade
then.
They usually specialise in one product line. These stores' major
consumers are low-income or bulk buyers (but still for personal
use).
Street Traders
Street traders are sometimes known as pavement sellers. They set
their shop on streets near schools, cinemas, train stations, etc. and
sell everyday items. Eg. Newspaper seller, food item seller etc.
[Link] shop retailers
They operate from a fixed location and are self-explanatory. They
are permanent structures that do not relocate frequently.
Features
Fixed shop retailers often operate on a considerably larger
scale, though this varies by store type.
They need a lot of cash for merchandise and infrastructure.
They also provide a wide range of products and services.
Consumers and manufacturers/wholesalers trust these
businesses more.
Types:
General Stores
General stores are the most common in India. They stock
everything from crackers and grains to toothpaste and shampoos.
They are positioned in a market where clients may easily access
them. To promote convenience, these establishments sometimes
offer home delivery and credit options.
Speciality Stores
Stores that specialise in one product category, such as women's
clothing, technology, or cosmetics. They exclusively sell things
from one category. Vijay Sales exclusively sells electronics. These
shops are frequently located in cities. They set up shop in a busy
area, like a mall, to maximise foot traffic.
Secondhand Products Store
They sell used goods. Some of these used things are rare books or
furniture or even cars. Their products are sourced differently
than typical merchants, although they are still considered retail.
Street Stallholders
These vendors have permanent stalls put up on the street. They
don't move their stalls often. Their shops are small, thus they
can't hold much stuff. They also deal in everyday products like
clothing, stationery, and tobacco.
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