Scope and benefits of retailing

What is retailing all about?

Retailing involves selling finished goods and services to consumers through various channels of distribution; demand/customer satisfaction being one of the major aims of the retailer. Retailing can be traced as far back to the ancient times although modern and more conventional retailing has taken over. Retail shops occur in diverse range of types and many different contexts, from shopping centers in residential areas to large malls, supermarkets or even companies.

Businesses considered as retail business
  1. Supermarkets
  2. Supermarkets sell finished goods varying from edibles to non edibles as well as some home utilities. Supermarkets in some places are also referred to as 'grocery stores'. They range from small sized stores to very large supermarkets depending on location and funds.

  3. Merchandize stores
  4. These stores deal in the sales of merchandize which may include toys, clothing, auto parts e.t.c. They sell mostly at discounted rates. Merchandize stores include department stores, large merchandisers and retail outlets.

  5. Online retailers
  6. This is slowly taking over stores, retail shops and even retail companies UK and other parts of the world. With the advent of retail friendly internet bundles, online networking, promotions on online advertisements, online retailing appears to be an easy and cost effective retail venture.

  7. Restaurants, eateries and diners
  8. I like to term these 'the food retailing business'. Its a common sight to find places like this filled with people (both the young and the old). By offering food and drinks services, these outlets seem to be one of the most patronized retail outlet.

Benefits of retailing
  • Promotion of customer rapport
  • This benefits both the buyer and the seller. The buyer gets to see the product one-on-one and even has the opportunity to make choices. A friendly staff or retailer also helps to encourage customer loyalty.

  • Sales potential
  • With a retail outlet, you can stock up many variety of goods that you wish to thereby making customers to even purchase things they never thought they needed. Hence, increasing your sales potential as a retailer.

  • Greater inventory options
  • A retailer can buy goods directly from the manufacturer if the wholesaler is out of the chain (this might be due to the fact that not all merchandize is available on the wholesale market).

Most retailing companies UK recognizes these benefits and takes advantage of the consumer's demand to create satisfaction and make more profits compared to wholesale markets.