Retail

Published on Author Suchen

Retail markets and shops have a very old history, dating back to antiquity. Over the centuries, retail shops have been transformed from “rough booths” to “sophisticated shopping malls” that we know today.

Retailing involves the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. Retailers satisfy demand identified through a supply chain . Some of the earliest retailers were itinerant peddlers . The term “retailer” is typically applied to a small business service provider, who are end-users, rather than large orders of a small number of wholesale , corporate or government customers. Shopping refers to the act of buying products. Sometimes this is done to obtain final goods, including necessities such as food and clothing; sometimes it takes place as a recreational activity. Recreational shopping often involves shopping (just looking, not buying) and browsing: it does not always result in a purchase.

Modern retailers typically make a variety of strategic level decisions including the type of store , the market to be served, the optimal product assortment, the customer service , supporting services and the store’s overall market positioning. The retail mix, which includes product, price, place, promotion, personnel and presentation. In the digital age , a growing number of retailers are seeking to expand markets by multiple channels, and both bricks and mortar and online retailing . Digital technologies are also changing the way thatconsumerspay for goods and services. Retailing support services may also include the provision of credit, delivery services, advisory services, stylist services and a range of other supporting services.

Retail shops in a wide range of types and in many different contexts – from strip shopping centers in residential streets through to large, indoor shopping malls . Shopping streets may restrict traffic to pedestrians only. Sometimes a shopping street has a full advantage , or a wind in the air . Forms of non-shop retailing include online retailing (a type of electronic commerce used for business-to-consumer ( B2C ) transactions) andmail order .

Etymology

Retail comes from the Old English word to cut , which means “to cut off, clip, pare, divide” in terms of tailoring (1365). It was first recorded as a “sale in small quantities” in 1433 (from the Middle French retail , “piece cut off, shred, scrap, paring”). [1] As in the French, the word, retail, in both Dutch and German, also refers to the sale of small quantities of items.

History

Retailing in antiquity

Retail markets have since ancient times. Archaeological evidence for trade, probably involving barter systems, dates back more than 10,000 years. As civilizations grew, barter was involved with retail trade involving coinage. Selling and buying is thought to have emerged in Asia Minor (modern Turkey) in around the 7th millennium BCE. [2] Gharipour points to evidence of primitive shops and trade centers in Sialk Hills in Kashan (6,000 BCE), Catalk Huyuk in modern-day Turkey (7,500-5,700 BCE), Jericho (2,600 BCE) and Susa (4,000 BCE). [3] Open air, public markets are known in ancient Babylonia, Assyria, Phenicia and Egypt. These markets typically occupied a place in the town’s center. Surrounding the market, skilled artisans, such as metal-workers and leather workers, occupied permanent premises in the open marketplace. These craftsmen may have their wares directly from their premises, but also prepared for sale on market days. [4] In ancient Greece markets operated in the agora , an open space where, on market days, goods were displayed on mats or temporary stalls. In ancient Rome , trade took place in the forum . Rome had two forums; the Roman Forum and Trajan’s Forum. The latter was a vast expanse, comprising multiple buildings with shops on four levels. The Roman forum was arguably the earliest example of a permanent retail shop-front. [5] In antiquity, exchange involved direct selling via merchants or peddlers and bartering systems were commonplace. [6]

The Phoenicians , noted for their seafaring skills, become a major trading power by the 9th century BCE. The Phoenicians imported and exported wood, textiles, glass and produce such as wine, oil, dried fruit and nuts. Their trading skills necessitated a network of settlements along the Mediterranean coast, stretching from modern day Crete through Tangiers and onto Sardinia [7]The Phoenicians are not only traded in tangible goods, but have also been instrumental in transporting culture. The Phoenician’s extensive trade networks necessitated considerable book-keeping and correspondence. In around 1500 BCE, the Phoenicians developed a consonantal alphabet which was much easier to learn than the complex scripts used in ancient Egypt and Mesopotamia. Phoenician traders and merchants are widely responsible for spreading their alphabet around the region. [8] Phoenician inscriptions have been found in the archaeological sites of Phoenician cities and colonies around the Mediterranean, such as Byblos (in present-day Lebanon ) and Carthage inNorth Africa . [9]

In the Graeco-Roman world, the market primarily served the local peasantry. Local producers, who were the poor, would sell small surpluses from their individual farming activities, and buy a few luxuries for their homes. Major producers such as these are very attractive to their farm-gates, obviating the producers’ need to wait for local markets. The very wealthy landowners managed their own distribution, which may have involved exporting and importing. The nature of export markets in ancient sources and archaeological case studies. [10]The Romans preferred to purchase goods from specific places: oysters from Londinium, cinnamon from a specific mountain in Arabia, and these place-based preferences stimulated throughout Europe and the Middle East. [11] Markets were also important centers of social life. [12]

The rise of retailing and marketing in England and Europe has been extensively studied, but is known about developments elsewhere. [13] Nevertheless, recent research suggests that China exhibited a rich history of early retail systems. [14] From as early as 200 BCE, Chinese packaging and branding has been used, and the use of product branding has been used between 600 and 900 CE. [15] Eckhart and Bengtsson have argued that during the Song Dynasty (960-1127), a Chinese society developed a consumerist culture, where it is possible for the elite. [16] The rise of a consumer culturebusiness image , retail signage , symbolic brands, trademark protection and sophisticated brand concepts. [17]

Retailing in Medieval Europe

In Medieval England and Europe, relatively few permanent shops were found; More about the tradesman’s workshops where they discussed purchasing options directly with tradesmen. In 13th century London, mercers and haberdashers have been known to exist and market themselves, to market, and to sell or sell food products. [18]

In the more populous cities, a small number of shops were beginning to emerge by the 13th century. In Chester , a medieval covered shopping arcade represented a major innovation that attracted shoppers from many miles around. Known as ” The Rows” this medieval shopping arcade is believed to be the first of its kind in Europe. [19] Fragments of Chester’s Medieval Row, which is believed to date to the mid-13th century, can still be found in Cheshire. [20] In the 13th or 14th century, another arcade with several shops was recorded at Drapery Row in Winchester. [21] Drapery Row, Mercer’s Lane and the emergence of street namesIronmonger Lane suggests that permanent shops become more commonplace.

Medieval shops had little in common with their modern equivalent. As late as the 16th century, London’s shops were described as “rough booths” and their owners “bawled as loudly as the itinerants.” [22] Cox and Dannehl suggest that the shopper’s experience was very different. Glazed windows, which were rare during the medieval period, and did not become commonplace until the eighteenth century, meaning that shop interiors were dark places. Outside the markets, goods were rarely out of the box. Shoppers had few opportunities to inspect the goods to consume. Many stores have had their way to the street. [23]

Outside the major cities, most consumables were made through markets or fairs. Markets were held daily in the most populous towns and cities in the most sparsely populated rural districts. Markets sold fresh produce; fruit, vegetables, baked goods, meat, poultry, fish and some ready to eat foodstuffs; while fairs are operating on a regular cycle and are almost always associated with a religious festival. [24] Fairs sold non-perishables such as farm tools, homewares, furniture, rugs and ceramics. Market towns dotted the medieval European landscape while itinerant vendors supplied less populated areas or hard-to-reach districts. Peddlers and other itinerant vendors The political philosopher John Stuart Mill compared the convenience of markets / fairs to that of the intinerant peddlers:

“The contrivance of fairs and markets was early, where consumers and producers might periodically meet, and this plan would be tolerable.” occupations, and the need for the consumers of the world, the need for the consumers must be provided for so long beforehand, or must remain so long unsupplied, that even before the resources of society of the establishment of shops, the These are the ones who seem to be able to see each other, who is likely to be a part of the time, being elected to the world, which only comes back once or twice a year. ” [25]

Blintiff has investigated the early Medieval networks of market towns in Europe, and suggests that it is an upsurge in the number of market towns and the emergence of merchants as bulk traders bulked up surpluses from smaller regional, different day markets and resold them at the larger centralized market towns. [26] Market-places appear to have independently iruope. The Grand Bazaar in Istanbul is often cited as the world’s oldest continuously operating market; its construction began in 1455. The Spanish conquistadors wrote glowingly of markets in the Americas. In the 15th century the Mexica ( Aztec ) market of Tlatelolcowas the largest in all the Americas . [27]

English market towns have been regulated from a relatively early period. The English monarchs awarded a local charter Lords to create markets and fairs for a town. This charter would grant the Lords the right to take tolls and also afford some protection from rival markets. For example, the market has been granted for specific market days, a nearby rival market could not open on the same days. [28] Across the boroughs of England, a network of chartered markets sprang up between the 12th and 16th centuries, giving them preferential patronage. [29]A study on the purchasing habits of the monks and other individuals in medieval England, suggests that consumers of the period were relatively discerning. These decisions are based on the understanding of the range, quality, and price of goods. This information is of greater importance. [30] Today, traders and showmen jealously guard the reputation of these historic market charters.

Braudel and Reynold have made a systematic study of these European market towns between the thirteenth and fifteenth century. Their investigation shows that they were held once or twice a day. Gradually over time, continuing to sell the markets, while in the distribution gap. The physical market was characterized by transactional exchange and the economy was characterized by local trading. Braudel reports that, in 1600, goods traveled relatively short distances – grain 5-10 miles; cattle 40-70 miles; wool and wollen cloth 20-40 miles. Following the European age of discovery, goods from India, porcelain, silk and tea from China,[31]

English essayist, Joseph Addison , writing in 1711, quoted from the English:

“Our Ships are Laden with the Harvest of Every Climate: Our Tables Are Stored with Spices, and Oils, and Wines: Our Rooms Are Filled with Pyramids of China, and Adorned with the Workmanship of Japan: Our Morning’s Draft Remotest Corners of the Earth: Our Friend Sir ANDREW calls the Vineyards of France our Gardens; the Spice Islands for Hot-beds; the Persians our Silk-Weavers , and the Chinese our Potters. [32]

Luca Clerici has made a detailed study of Vicenza’s food market during the sixteenth century. He found that there were many different types of resellers operating out of the markets. For example, in the dairy trade, cheese and butter by the members of two craft guilds (ie, who were shopkeepers) and that of the so-called ‘resellers’ (hucksters selling a wide range of foodstuffs), and by other sellers who were not enrolled in any guild. Cheesemongers’ shops were located at the town hall and were very lucrative. Resellers and direct sellers increased the number of sellers, thus increasing competition, to the benefit of consumers. Direct sellers, who brought produce from the countryside, sold their wares through the central marketplace and priced their goods at discounted rates than cheesemongers. [33]

Retailing in the 17th, 18th and 19th centuries

By the 17th century, permanent shops are beginning to supplant markets and fairs. Provincial shopkeepers were active in almost every market town. These shopkeepers sell a general store or a general store. For example, William Allen, a mercer in Tamworth who died in 1604, sold spices alongside furs and fabrics. [34] William Stout of Lancaster retailed sugar, tobacco, nails and plums at both his shop and at the central markets. His autobiography reveals that he is one of the most influential people in the world. [35]

As the number of shops grew, they underwent a transformation. The trappings of a modern shop, which was entirely new to the sixteenth and early seventeenth century Prior to the eighteenth century, the typical retail store had no counter, display cases, chairs, mirrors, changing-rooms, etc. However, the opportunity for the customer to browse merchandise, touch and feel products to be available, with retail innovations from the late 17th and early 18th centuries. [36]

Outside the major metropolitan cities, there are many types of customers. However, gradually retail stores introduced innovations that would allow them to separate wealthier customers from the “riff raff.” One technique was able to be used. This allowed the sale of goods to the common people, without encouraging them to come inside. Another solution, that came into vogue from the late sixteenth century was to invite customers to a back-room of the store, where goods were permanently on display. Yet another technique that has emerged around the same time as a showcase of goods in the shopkeeper’s private home for the benefit of wealthier customers. Samuel Pepys, for example, writing in 1660,[37] The eighteenth century English entrepreneurs, Josiah Wedgewood and Matthew Boulton , both staged expansive showcases of their wares in their private residences or in rented halls. [38]

American merchants, who have been operating as importers and exporters, have begun to specialize in either wholesale or retail roles. They tend to specialize in particular types of merchandise, often trading as general merchants, selling to various ranges of product types. These merchants were concentrated in the larger cities. They often provide high levels of credit financing for retail transactions. [39]

By the late eighteenth century, great shopping arcades began to emerge across Europe and in the Antipodes. A shopping arcade refers to a multiple-seller space, operating under a roof roof. Typically, the roof is constructed of glass to allow for natural light and to reduce the need for candles or electric lighting. The architect, Bertrand Lemoine, described the period, 1786 to 1935, as the Era of the walkways (the Arcade Era). [40]Designed to attract the middle class, retailers. However, prices have never been a deterrent, as these new arches come to the market and to be seen. Arcades Offered the Shoppers of the Noisy and Dirty Streets; a warm, dry space away from the elements, and a safe-haven where people could socialize and spend their leisure time. As thousands of glass covered arcades spread across Europe, they became larger and more ornately decorated. By the mid nineteenth century, they had become prominent centers of fashion and social life. Promenading in these arcades became a popular nineteenth century pass-time for the emerging middle classes. The Illustrated Guide to Paris of 1852 summarized the arcades in the following description:

“In speaking of the inner boulevards, we have made mention again and again of the arcades which open onto them. These arches, a recent invention of industrial luxury, are glass-roofed, marble-paneled corridors extending through whole blocks of buildings, These are the most elegant shops in the world, so that the arcade is a city, a world in miniature, in which customers will find everything they need. ” [41]

The Royal Palace in Paris, which opened to the public in 1784 and became one of the most important marketplaces in Paris, is widely regarded as an example in the great shopping arcades. [42]The Palais-Royal was a complex of gardens, shops and entertainment, located on the outskirts of the grounds, under the original colonnades. The area boasted some 145 shops, cafes, salons, hair salons, bookshops, museums, and numerous refreshment kiosks as well as two theaters. The retail outlets specialize in luxury goods such as fine jewelry, furs, paintings and furniture designed to appeal to the wealthy elite. Retailers operating out of the Palace complex were among the first in Europe to abandon the system of bartering, and adopt fixed-prices thereby sparing their customers the hassle of bartering. They have been fitted into the window of the window, and they have become fashionable, even if they are not able to afford it. THUS, The Royal Palace has become one of the first examples of a new style of shopping arcade, frequented by both the aristocracy and the middle classes. It has a reputation for being a site of sophisticated conversation, revolving around salons, cafes, and bookshops, but has become a favorite place of off-duty and a favorite haunt of prostitutes.[43] London’s Burlington Arcade , which opened in 1819, located on the outskirts of the city. [44] Other notable nineteenth century grand arcades include the Royal Galleries Saint-Hubert in Brussels which was inaugurated in 1847, Istanbul’s Çiçek Pasajı opened in 1870 and Milan’s Galleria Vittorio Emanuele II first opened in 1877. Shopping arcades were the precursor to the modern shopping mall.

While the arcades were the province of the bourgeoisie, a new type of retail venture emerged to serve the needs of the working poor. John Stuart wrote about the rise of the co-operativeretail store, which he witnessed first-hand in the mid-nineteenth century. Stuart Mill locates these co-operative stores as part of a broader co-operative movement which was prominent in the industrial city of Manchester and in the counties of Yorkshire and Lancashire. He documents one of the early co-operative retail stores in Rochdalein Manchester, England, “In 1853, The Store Purchased for £ 745, a warehouse on the opposite side of the street, where they keep and retail their stores of flour, butcher’s meat, potatoes, and kindred articles.” Stuart Mill also quoted a contemporary commentator who wrote about the benefits of the co-operative store:

“There is no doubt that they do not care about one another, but they do not know each other.” These crowds of humble working men adulterated, whose shoes are in the water a month too soon, whose waistcoats shone with devil’s dust, and whose wives would like to go to the market, like to buy millionaires, live like lords . ” [45]

Retailing in the modern era

The modern era of retailing is defined as the period of the industrial revolution to the 21st century. [46] In major cities, the department stores in the mid-late 19th century, and permanently reshaped shopping habits, and redefined concepts of service and luxury. The term, “department store” originated in America. In 19th century England, these stores are known as emporia or warehouse shops. [47] A number of major department stores opened across the USA, Britain and Europe from the mid nineteenth century; Harrod’s of London in 1834; Kendall’s in Manchester in 1836; Selfridges of London in 1909; Macy’s of New York in 1858; Bloomingdale’s in 1861; Sak ‘JC Penney in 1902; Le Bon Marche of France in 1852 and Galeries Lafayette of France in 1905. Other Twentieth Century innovations in retailing included chain stores, mail-order , multi-level marketing (pyramid selling or network marketing, c. 1920s), party planning ( c. 1930s) and B2C e-commerce (cyber-peddling). [48]

Many of the early department stores were more than just a retail emporium; they were where they could spend their leisure time and be entertained. Some departments stores offered, art galleries and concerts. Where can we go to? The fashion show, which originated in the US in around 1907, became a staple feature for many celebrities and celebrity appearances were also used to great effect. Themed events featured from foreign shores, exposing shoppers to the exotic cultures of the Orient and Middle East. [49]

During this period, retailers worked to develop modern retail marketing practices. Pioneering merchants who contributed to modern retail marketing and management methods include: AT Stewart , Potter Palmer , John Wanamaker , Montgomery Ward , Marshall Field , Warren Warren Sears , Rowland Macy , Penney JC , Fred Lazarus , Edward Brothers and William Filene and Sam Walton . [50] For example, Edward Filene, a proponent of the scientific approach to retail management, developed the concept of Automatic bargain Basement.Although Filene’s Basement was not the first ‘bargain basement’ in the US, the principles of ‘automatic mark-downs’ generated excitement and proved very profitable. Under Filene’s plan, it was marked down; after a further 12 days, a further markdown of 25% was applied. If the merchandise remained unsold after two months, it was given to charity. [51]Filene was a pioneer in employee relations. He has a profit sharing program, a minimum wage for women, a 40-hour work week, health clinics and paid vacations. He also played an important role in encouraging the Filene Cooperative Association, “perhaps the earliest American company union”. Through this channel, he is actively engaged in collective bargaining and arbitration processes. [52] Montgomery Ward is credited with developing catalog sales and mail-order systems. His first catalog which was issued in August 1872 (8 cm × 30 cm) single-sheet price list, listing 163 items for sale with instructions for which Ward had written the copy. He also devised the catch phrase “satisfaction guaranteed or your money back”[53]

Throughout the twentieth century, became more discernible. The average size of a US supermarket grew from 31,000 square feet in 1991 to 44,000 square feet in 2000. In 1963, Carrefour opened the first hypermarket in St. Genevieve-de-Bois, near Paris, France. [54] By the end of the twentieth century, stores were using labels such as “mega-stores” and “warehouse” stores to reflect their growing size. In Australia, for the most popular hardware chain, Bunnings has shifted from smaller “home centers” (retail floor space under 5,000 square meters) to “warehouse” stores (retail floor space between 5,000 and 21,000 square meters) in order to accommodate greater range of goods and in response to population growth and changing consumer preferences.The upward trend of increasing retail space was not consistent across nations, and led to the early 21st century to a 2-fold difference in square footage per capita between the United States and Europe. [56] As the 21st century takes shape, some indications suggest that large retail stores have come to the fore. [57]

Retail strategy

The distinction between “strategic” and “managerial” decision-making is commonly used for distinguishing between two different phases of strategy and the other. of decision-making on the other hand, the decision-making process is focused on the implementation of specific targets. ” [58]

In retailing, the strategic plan is designed to provide an overview and provide guidance for retailers. As part of the strategic planning process, it is used for strategic planners to carry out a comprehensive environmental scan. The retail strategy is normally devised every 3-5 years by the chief executive officer.

The strategic retail analysis typically includes the following: [59]

* Market analysis
Market size, stage of market, market competitiveness, market attractiveness, market trends
* Customer analysis
Market segmentation , demographic, geographic and psychographic profiles, values ​​and attitudes, shopping habits, brand preferences, analysis of needs and wants
* Internal analysis
Other capabilities eg human resource capability, financial capability, ability to generate economies or economies of scope , trade relations, reputation, positioning, past performance
* Competition analysis
Availability of substitutes, competitor’s strengths and weaknesses, perceptual mapping, competitive trends
* Review of product mix
Sales per square foot, stock-turnover rates, profitability per product line
* Review of distribution channels
Lead-times, cost of distribution, cost efficiency of intermediaries
* Evaluation of the economics of the strategy
Cost-benefit analysis of planned activities

At the conclusion of the retail analysis, the retail marketers should have a clear idea of ​​which groups of customers are the target of marketing activities. Research studies suggest that there is a strong relationship between a store’s position and the socio-economic status of customers. [60] In addition, the retail strategy, including service quality, has a significant and positive association with customer loyalty. [61]A marketing strategy effectively outlines all key aspects of firms’ targeted audience, demographics, preferences. In a highly competitive market, the retail strategy sets up long-term sustainability. It focuses on customer relations, stressing the importance of added value, customer satisfaction, and the market positioning of customers.

The retail marketing mix

See also product management ; promotion mix ; marketing mix ; price ; servicescapes and retail design

Once the strategy is in place, retail managers turn to the more managerial aspects of planning. A retail mix is ​​devised for the purpose of coordinating day-to-day tactical decisions. The retail marketing mix consists of six broad decision layers including product decisions, place decisions, promotion, price, and personal presentation (also known as physical evidence). [62] The retail mix is ​​loosely based on the marketing mix , but has been expanded and modified in line with the unique needs of the retail context. A number of scholars have argued for the new Ps, namely, Personnel and Presentationshould be added to the marketing mix since they contribute to the customer’s unique retail experience and are the main basis for retail differentiation. Yet other scholars argue that the Retail Format should be included. [63] The modified retail marketing mix that is most commonly cited in text-books is often called the 6 Ps of retailing (see diagram at right). [64] [65]

Product

See Product management

The primary product-related decisions facing the retailer are the product assortment (what product lines, how many lines and which brands to carry); the type of customer service and the availability of support services (eg credit terms, delivery services, after sales care). These decisions depend on the market’s analysis, demand, competition and skills.

Product assortment

The term product assortment refers to the combination of both product breadth and depth. The main characteristics of a company’s product assortment are: [66]

(1) the length or number of products lines
the number of different products
(2) the breadth
refers to the variety of product lines that a store offers. It is also known as product assortment width, merchandise breadth, and product line width .:
(3) product range within a product line
the number of each item
(4) consistency
how to relate to each other in a retail environment.

For a retailer, finding the right balance between breadth and depth can be a key to success. An average supermarket might carry 30,000-60,000 different product lines (product length or assortment), but might carry up to 100 different types of toothpaste (product depth). [67] Specialty retailers typically carry fewer lines, perhaps as few as 20 lines, but will normally be larger. Costco, for example, carries 5,000 different lines while Aldi carries just 1,400 lines per store. [68]

Large assortments offer consumers many benefits, and the opportunity to be able to locate the ideal product. However, for the retailer, larger assortments in terms of record-keeping, managing inventory, pricing and risks associated with wastage due to spoiled, shopworn or unsold stock. Carrying more stock also exposes the retailer to higher risks in terms of slow-moving stock and lower sales. On the other hand, reducing the number of product lines can be increased by eliminating slow-moving lines, lower stockouts, increased bargaining power with suppliers, and reduced costs associated with wastage and carrying inventory, and higher sales per square foot which means more efficient space use.

When determining the number of product lines, the retailer must consider the store type, the physical storage capacity, the perishability of items, and the customer’s needs and expectations.

Customer service and supporting services

Customer service is the “sum of acts and elements that allow consumers to receive from the retail establishment.” It is important for a sales associate to greet the customer and make himself available. Retailers must decide to provide such services, such as no-service in the case of vending machines; self-service with only basic sales or a full service operation in many shops and specialty stores. In addition, the retailer needs to make decisions about sales and customer service.

Retailing services may also include the provision of credit, delivery services, advisory services, exchange / return services, product demonstration, special orders, customer loyalty programs, limited-scale trial, advisory services and a range of other supporting services. Retail stores often seek to differentiate along with customer service lines. For example, some department stores offer the services of a stylist ; a fashion advisor, to assist customers Selecting a fashionable wardrobe for the Forthcoming season, while smaller shops May allow regular customers to take goods home on approval , Enabling the customer to try out goods before making the final purchase. The variety of supporting services is known to the service type.At one end of the spectrum, self-service providers offer a few basic support services. At the other end of the spectrum, full-service operators offer a wide range of highly personalized services to increase the retail experience. [69]

When making decisions about customer service, the retailer must balance the customer’s desire for full-service against the customer’s willingness to pay for the cost of providing services. Self-service is a very cost effective way of delivering services to the retailer harnesses the customers labor power to carry out many of the retail tasks. However, many customers appreciate full service and are willing to pay a premium for the benefits of full-service. [70]

Product information, providing product and service-related information, providing customer satisfaction, providing accurate customer satisfaction, providing accurate customer satisfaction. [71]For retail store owners, it is extremely important to train staff with the requisite skills to deliver excellent customer service. Such skills may include product knowledge, inventory management, handling cash and credit transactions, handling product exchange and returns, and detailed knowledge of store policies. The provision of excellent customer service creates more opportunities to build enduring customer relationships. In the long term, excellent customer service provides businesses with a continuing reputation and can lead to a competitive advantage. Customer service is essential for several reasons. [72]Firstly, customer service contributes to the customer’s overall retail experience. Secondly, what does it mean that it does not need to be used? Customer service training entails instructing staff in the methods of servicing the customer that will benefit corporations and businesses. It is significant to a jump suit les-employed customers Amongst Known As Customer relationship management . [73]

Types of customer service

There are several ways the retailer can deliver services to consumers:

  • Counter service , where goods are out of reach of buyers and must be obtained from the seller. This type of retail is common for small cost items (eg jewelery) and controlled items like medicine and liquor. It was common before the 1900s in the United States and is more common in certain countries like India. which? ]
  • Click and select where you are picked up via a drive through.
  • Ship to Store, where products are ordered and can be picked up at the retailer’s main store
  • Delivery , where goods are shipped directly to consumer’s homes or workplaces.
  • The mail order was printed in 1744 and was used in the late 19th and early 20th centuries. Ordering by phone Was common in the 20th century, Either from a catalog, newspaper, television advertisement or a local restaurant menu , for immediate services (especially for pizza delivery ), remaining in common use for food orders. Internet shopping – a form of delivery – has eclipsed phone-ordering, and, in many sectors – such as books and music – all other forms of buying. There is increasing competitor pressure to be delivered – especially those who are online – in a more timely fashion. Large online retailers such as Amazon.comare continually innovating and as of 2015 offer one-hour delivery in certain areas. They are also working with drone technology to provide customers with more efficient delivery options. Direct marketing , including telemarketing and television shopping channels , are also used to generate telephone orders. started gaining significant market share in developed countries in the 2000s.
  • Door-to-door sales, where the salesperson sometimes travels with the goods for sale.
  • Self-service , where goods can be handled and examined prior to purchase.
  • Digital delivery or Download , where intangible goods, such as music, film, and electronic books and subscriptions to magazines, are delivered directly to the consumer in the form of information the consumer controls (such as an MP3 player , see digital rights management ). The digital sale of models for 3D printing also fits here, as the media leasing types of services, such as streaming .

Place

Place decisions are primarily concerned with consumer access and may involve location, space use and operating hours.

Location

Also see Site selection

Retail stores are ideal – high traffic areas, central business districts. Selecting the right website can be a major success factor. When evaluating potential sites, retailers often carry out a trade area analysis ; a detailed analysis designed to approximate the potential patronage area. Techniques used in the field of analysis include: Radial (ring) studies ; Gravity models and Drive time analyzes. [74]

In addition, retailers may consider a range of both qualitative and quantitative factors to assess potential sites under consideration:

* Macro factors
Macro factors include market characteristics, demand, competitiveness and infrastructure (eg the availability of power, roads, public transport systems)
* Micro factors
Micro factors include the size of the website, access for delivery vehicles

Pricing strategy and tactics

The broad pricing strategy is normally established in the company’s overall strategic plan. In the case of the chain stores, the pricing strategy would be set by head office. Broadly, there are six approaches to pricing strategy in the literature:

Operations-oriented pricing : where the objective is to optimize productive capacity, to achieve operational efficiencies or to match supply and demand. In some cases, prices may be set to de-market. [75]
Revenue-oriented pricing: (Also Known As profit-oriented pricing or cost-based pricing ) – Where the marketer seeks to maximize the profits (ie, the excess income over costs) or simply to cover costs and break even . [75]
Customer-oriented pricing : where the objective is to maximize the number of customers; encourages cross-selling opportunities or recognizing different levels in the customer’s ability to pay. [75]
Value-based pricing : (also known as image-based pricing ) where the company uses the market value of the price of the product. The aim of value-based pricing is to reinforce the overall positioning of the market. [76] [77]
Relationship-oriented pricing : where the marketer sets prices in order to build or maintain relationships with existing or potential customers. [78]
Socially-oriented pricing : Where the objective is to encourage or discourage specific social attitudes and behaviors. eg high tariffs on smoking. [79]

The technical pricing used by most retailers is cost-plus pricing . This involves adding a markup amount (or percentage) to the retailer’s cost. Another common technique is suggested retail pricing . This Involves simply charging the amount suggéré by the manufacturer and usually printed on the product by the manufacturer.

Pricing tactics

See also Pricing

When decision-makers have determined the pricing approach, they turn their attention to pricing tactics. Tactical pricing decisions are shortened, designed to achieve specific short-term goals. The tactical approach to pricing may vary from time to time, depending on a range of internal considerations (eg the need to clear surplus inventory) or external factors (eg a response to competitive pricing tactics). Accordingly, a number of different pricing tactics may be employed in the course of a single period or a single year. Typically store managers have the necessary flexibility to vary their position in the context of the overall strategic approach.

Retailers must also plan for customer preferred payment modes – eg, cash, credit, lay-by, Electronic Funds Transfer at Point-of-Sale (EFTPOS). All payment options require some type of handling. If credit is to be offered, then credit terms will need to be determined. If lay-by is offered, then the retailer will need to take into account the storage and handling requirements. If cash is the dominant mode of payment, the retailer will need to consider, the number of cash floats required, the costs of handling large volumes of cash and the provision of secure storage for exchange floats. Large retailers, handling large volumes of cash. A small,[80] For example, Subway (US) recently announced that it would accept Bitcoin payments. [81]

Pricing tactics that are commonly used in retail include:

Discount pricing

Discount pricing is where the marketer or retailer offers a reduced price. Discounts in a variety of forms – eg, discounts, loyalty rebates, seasonal discounts, periodic or random discounts etc. [82]

Everyday low prices (EDLP)

Everyday low prices refers to the practice of maintaining a regular rate of duty in which consumers are not forced to wait for discounting or specials. This method is extensively used by supermarkets. [83]

High-low pricing

High-low pricing refers to the practice of providing goods at a high price for a period of time, followed by a low price for a time. This practice is widely used by chain stores selling homewares. The main disadvantage of the high-low tactics is that consumers tend to become aware of the low prices and low cost cycle. [84] [85]

Loss leader

A loss leader is a product that has a price set below the operating margin . Loss leadering is widely used in supermarkets and budget-priced retail outlets where it is intended to generate store traffic. The low price is being promoted and is being reduced to a small loss on an individual item, with an expectation that it will be reduced to a higher rate. In service industries, loss leadering can refer to the practice of charging prices on the first order as an inducement and with anticipation of charging higher prices to subsequent orders.

Price bundling

Price bundling (also known as product bundling ) where one or more products are priced as a package. There are several types of bundles: pure bundles where the goods can only be purchased as package or mixed bundles . The prices of the bundle are typically less than two. [86] Price bundling is extensively used in the personal care and cosmetics sector.

Price lining

Price lining is the use of a limited number of prices for all products offered by a business. Price lining is a tradition started in the old five and dime stores in which everything cost 5 or 10 cents. In price lining, the price remains constant but quality of product. The Underlying rationale of this tactic Is That thesis water equivalent are seen as suitable price point for a whole ranks of products by prospective customers. It has the advantage of ease of administration, but the disadvantage of inflexibility, particularly in times of inflationor unstable prices. Price where the rack is priced at $ 10, $ 20 and $ 40.

Promotional pricing

Promotional pricing is a duty of payment at a lower rate than for full service. Promotional pricing is sometimes a reaction to unforeseen circumstances. or when competitive activity is making inroads into market share or profits. [87]

Psychological pricing

Psychological pricing is a range of tactics designed to have a positive psychological impact. Price tags using the terminal digit “9” ($ 9.99, $ 19.99 or $ 199.99) can be used to signal price point and bring an item in at just under the consumer’s reservation price . Psychological pricing is widely used in a variety of retail settings. [88]

Staff and staffing

Because patronage is a variety, flexibility in scheduling is desirable. Employee scheduling software is sold, which, using known patterns of customer sponsorship, more or less reliably predicts the need for staffing for various functions at times of the year, day of the month or week, and time of day. Usually needs vary widely. Staff members are not required when they are not part-time workers; as of 2012 70% of US retailers were part-time. This may be the case, where they are required, but they are required to maximize their ability to pay. [89]

Selling and sales techniques

Also see Personal selling

Retailers can employ different techniques to enhance sales and to improve the customer experience:

Add-on, Upsell or Cross-sell.
Upselling and cross selling are known as suggestive selling. When the consumer has their sales, sales assistants or sales representatives can increase their sales (cross-selling). For instance, if a customer buy a non-stick frypan, the sales assistant might suggest plastic slicers that do not damage the non-stick surface.
Selling on value
Skilled sales assistants find ways to focus on value rather than price. Selling on value is often a unique feature. Adding value to goods or services to a free gift or buy 1 get added value to customers where the store is gaining sales [90]
Know when to close the sale
Sales staff must learn to recognize when the customer is ready to make a purchase. If the sales person feels that they are ready, then they can seek to gain commitment and close the sale. Experienced sales staff know how to recognize specific verbal and non-verbal cues that signal the customer’s readiness to buy. For instance, if a customer begins to handle the goods, Clients also tend to employ different types of issues throughout the sales process. General questions such as, “Does it come in any other colors (or styles)?” indicate only a moderate level of interest. However, when customers begin to ask specific questions, such as “Do you have this model in black?” then this often indicates that the prospect is approaching readiness to buy. [91]When the sales person thinks that the prospective purchaser is ready to make a purchase, a trial close may be used to test the waters. A trial close is simply any attempt to confirm the buyer’s interest in the finalization of the sale. An example of a trial close, is “Would you like our team to install the unit for you?” gold “Would you be ready to take delivery next Thursday?” If they are interested in the prospect of readiness to buy, they might consider using a trial close. The salesperson can use several different techniques to close the sale; including the ‘alternative close’, the ‘close close’, the ‘close summary’, or the ‘special-offer close’, among others.

Promotion

One of the only aspects of retail is often involved; the brand and the brands that make up the retailer’s product range. Retail promotions that focus on the store tends to be ‘image’ oriented, raising awareness of the store and creating a positive attitude towards the store and its services. Retail promotions that focus on the product range, are designed to cultivate a positive attitude to the brands. [92] Some retail advertising and promotion is partially or wholly funded by brands and is known as co-operative (or co-op) advertising. [93]

Presentation

Presentation refers to the physical evidence that signals the retail image. Physical evidence may include a variety of elements – the store itself, the offices, exterior facade and interior layout, websites, delivery vans, warehouses, staff uniforms.

Designing retail spaces

The environment in which the retail service is known is generally known as retail servicescape. [94] The environment environment, ambient conditions (lighting, temperature, noise), ambient conditions (lighting, temperature, noise), symbols and artifacts (eg sales promotions, shelf space, sample stations, visual communications). Collectively, these elements contribute to the perceived retail servicescape or the overall atmosphere and can influence both the customer’s cognitions, emotions and their behavior within the retail space.

Retail designers pay close attention to the front of the store, which is known to the decompression zone . [95] This is usually an open space in the entrance of the store to allow customers to adjust to their new environment. An open-plan floor design is effective in retail as it allows customers to see everything. In terms of the store’s exterior, the side of the road. New Zealand retail stores, for instance, would direct customers to the left.

In order to maximize the number of selling opportunities, retailers generally want customers to spend more time in a retail store. However, this must be balanced against a customer’s convenience and convenience. The overall aim of designing a retail environment is one of the world’s largest retailers, and one of a number of different types of retailers. The retail service environment plays an important role in the customer’s perceptions of the retail experience. [96]

The retail environment not only affects quality perceptions, but can also impact the way customers navigate their way through the retail space during the retail service encounter. Layout, directional signage, the placement of furniture, shelves and display space along with the store’s ambient conditions. Layout refers to how equipment, shelves and other furnishings are placed and the relationship between them. In a retail setting, accessibility is an important aspect of layout. For example, the grid layout used by supermarkets with long aisles and gondolas at the end displaying premium merchandise or promotional items, minimizes the time customers spend in the environment and makes productive use of available space. [97]The gondola, so favored by supermarkets, is an example of a retail design feature Known As has Goods outpost and qui Refers to special displays, Typically at or near the end of an aisle, Whose purpose is to Stimulate impulse purchasing gold to complement other products in the vicinity. For example, the meat cabinet at the supermarket can be used in the marketplace. As a generalization, merchandise outposts are updated regularly so that they maintain a sense of novelty. [98]

According to Ziethaml et al., Layout affects how easy or difficult it is to navigate through a system. Signs and symbols provide guidance for navigation and also information on appropriate behavior within a store. Functionality refers to the extent to which the equipment meets the goals of the customer. [99]For instance, in the case of supermarkets, the customer’s goal may be to minimize the amount of time spent waiting for check-out, while a customer in a retail mall may wish to spend more time exploring the range of stores Goods. With regard to functionality of layout, the retail designers consider three key issues; circulation – design for traffic-flow and that encourages customers to cross the entire store; co-ordination – design and delivery of goods and services in the form of customer service and convenience. [100]

The way that brands are displayed is also part of the overall retail design. Where a product is placed on the shelves has implications for purchase likelihood as a result of visibility and access. Products placed too high or low on the shelves [101] With respect to access, the designers are in favor of access to the elderly.

Through sensory stimulation retailers can engage maximum emotional impact between a brand and its consumers by relating to both profiles; the goal and experience. It can be influenced by the senses of touch, smell, sight, taste and sound. [102] Supermarkets offer taste testers to heighten the sensory experience of brands. Coffee shops allow the aroma of coffee to waft into streets so that passers-by can appreciate the smell and perhaps be lured inside. Clothing garments are placed at arms’ reach, allowing customers to feel different textures of clothing. [102] Retailers understand that when they interact with products, they are more likely to make a purchase.

Within the different environments, different spaces can be designed for different purposes. Hard floors, such as wooden floors, used in public areas, contrast with carpeted fitting rooms, which are designed to create a sense of homeliness when trying on garments. Peter Alexander , retailer of sleep ware, is renowned for using scented candles in retail stores.

Ambient conditions, such as lighting, temperature and music, are also part of the overall retail environment. [103] It is common for a retail store to play music that relates to their target market. Studies have found that “positively valenced music will be more likely to negatively affect music”, hence, positively valenced music will make the waiting time longer to the customer than negatively valenced music. [104] In a retail store, for example, changing the background music to a quicker tempo can influence the consumer to move through the space at a faster pace, improving its flow of traffic. [105] Evidence also suggests that playing music reduces the effects of distraction.[106] Jewelery stores like Michael Hill have dim lighting with a view to fostering a sense of intimacy.

The design of a retail store is critical when appealing to the intended market, as this is where first impressions are made. The overall servicescape can influence a consumer’s perception of the quality of the store, communicating value in visual and symbolic ways. Some techniques are used to create a consumer brand experience, which in the long run drives store loyalty. [107]

Shopper profiles

Two different strands of research have investigated shopper behavior. One strand is primarily concerned with shopper motivations. Another stream of research seeks to be segmented according to common, shared characteristics. To some extent, these streams of research are inter-related, but each stream of different types of insights into shopper behavior.

Babin et al. The two motives: utilitarian and hedonic. Utilitarian motivations are task-related and rational. For the shopper with utilitarian motives, is a work-related task that is most efficient and expedient manner. On the other hand, hedonic motives refer to pleasure. The shopper with hedonic motivations seen shopping as a form of escapism where they are free to indulge fantasy and freedom. Hedonic shoppers are more involved in the shopping experience. [108]

Many different shopper profiles can be identified. Retailers develop customized segmentation analyzes for each unique outlet. However, it is possible to identify a number of broad shopper profiles. One of the most well-known and widely cited references in the mid-1980s. [109] [110] [111] Sproles and Kendall’s consumer typology has been shown to be relatively consistent across time and across cultures. [112] [113] Their typology is based on the consumer’s approach to making purchase decisions. [114]

  • Quality conscious / Perfectionist : Quality-consciousness is characterized by a consumer’s search for the best quality in products; quality conscious consumers tend to shop systematically making more comparisons and shopping around.
  • Brand-conscious : Brand-consciousness is characterized by a tendency to buy expensive, well-known brands or designer labels. Those who score high on brand-consciousness tend to believe that they are an indicator of quality and retailers.
  • Recreation-conscious / Hedonistic : Recreational shopping is characterized by the consumer’s commitment in the purchase process. Those who score high on recreation-consciousness look at shopping itself as a form of enjoyment.
  • Price-conscious : A consumer who exhibits price-and-value consciousness. Price-conscious shoppers carefully shop around looking for prices, sales or discounts and are motivated by the best value for money
  • Novelty / Fashion-conscious : Characterized by a consumer’s tendency to seek out new products or new experiences for the sake of excitement; who gain excitement from seeking new things; they like to keep up-to-date with fashions and trends,
  • Impulsive : Impulsive consumers are somewhat careless in making purchase decisions, and are not overly concerned with spending levels or obtaining value. Those who score high on impulsive dimensions tend not to be engaged in the cognitive or emotional level.
  • Confused (by over-choice) : a consumer’s confusion caused by too much product choices, too many stores or an overload of product information; tend to experience information overload.
  • Habitual / brand loyal : characterized by a consumer’s tendency to follow; consumers have favorite brands or blinds and clothes; the purchase decision does not involve much evaluation or shopping around.

Some researchers have adapted Sproles and Kendall’s methodology for use in specific countries or cultural groups. [115] Consumer decisions are important for retailers and marketers because they describe behaviors that are relatively stable over time and for this reason, they are useful for market segmentation.

Retail format: types of retail outlet

The retail size (Also Known As the retail formula ) influences the consumer’s choice and blind addresses the consumer’s expectations. At its most basic level, a retail format is a simple marketplace , that is; where are the goods and services are exchanged. In Some parts of the world, the retail sector is still Dominated by small family-run stores, goal wide retail chainsare dominating the sector, because they can exert considerable power and pass on the savings in the form of lower prices. Many of these broad retail chains also produce their own private labels. Considerable consolidation of retail stores has changed the retail landscape, transferring power away from wholesalers and into the hands of the broad retail chains. [116]

In Britain and Europe, the retail trade of goods is designated as a service activity . The European Service Directive applies to all retail traders including periodic markets, street traders and peddlers.

Retail type by product

Retail stores can be classified by the type of product

Food retailers

Retailers carrying highly perishable foodstuffs such as meat, dairy and fresh produce generally require cold storage facilities. Consumers purchase food products – a daily, weekly or monthly.

Softline retailers [117] [118]

Softline retailers sell goods that are consumed after a single use, or have a limited life in their normal lives. Soft goods include clothing , other fabrics , footwear , toiletries , cosmetics , medicines and stationery .

Grocery and convenience retail

Grocery stores, including supermarkets and hypermarkets, along with household cleaners, cleansers, cleansers, personal hygiene products. Consumer consumables are collectively known as fast-moving-consumer goods (FMCG), and represent the most popular lines by supermarkets, grocers and convenience stores. For consumers, these products represent high turnover product lines. Grocery stores and convenience stores carry similar lines, but a convenience store is often open at times and is available for access.

Hardline retailers

Retailers selling durable consumer are known as hardline retailers [119] – automobiles , appliances , electronics , furniture , sporting goods , lumber , etc., and parts for them. Goods that do not quickly wear out and provide utility over time. For the consumer, these items often represent major purchase decisions. Consumers purchase durable over longer purchase decision cycles. For instance, the typical consumer might replace their family every 5 years, and their home computer every 4 years.

Specialist retailers

Specialist retailers operate in many industries such as the arts eg green grocers, contemporary art galleries , bookstores , handicrafts , musical instruments , gift shops .

Retail types by marketing strategy

Types of retail outlet by marketing strategy

Arcade

A shopping arcade refers to a group of retail outlets operating under a covered walkway. Arcades are similar to shopping malls, although they typically include a smaller number of outlets. Shopping arcades were the evolutionary precursor to the shopping mall, and were very fashionable in the late nineteenth century. Stylish men and women would walk around the arcade, stopping to window shop, making purchases and also taking care of the arcade’s tea-rooms. Arcades offered fashionable men and women opportunities to be seen and to socialize in a relatively safe environment. Arcades continues to exist as a separate type of retail outlet. Historic nineteenth century arcades have become popular tourist attractions in cities around the world. Fun arcades, also known as penny arcades in the US, are more modern incarnation of the eighteenth and nineteenth century shopping arcade.

Bazaar

The term, ‘ bazaar ‘ can have multiple meanings. It can refer to a middle-eastern market place while a ‘penny bazaar’ refers to a specialty in inexpensive or discounted merchandise. In the United States, the term “rummage sale” may be used to describe a charity fundraising event held by a charity or other community organization and in which it is made available for sale.

Shop

A boutique is a small store offering a range of fashionable goods or accessories. The term, ’boutique’, in retail and services, appears to be taking a close look, boutique beers (ie craft beers), boutique investments etc. [120] [[File: Inside a new Officeworks store.jpg | thumb | Australia’s Officeworks is a killer, retailing everything for the home office or small commercial office – stationery, furniture, electronics, communications devices, copying, printing and photography services , coffee, tea and light snacks]]

Category killer

By supplying a wide assortment in a single category for a killer retailer can “kill” that category for other retailers. [121] A category killer is a specialist that dominates a category. Toys “R” Us, established in 1957, is thought to be the first category killer, dominating the children’s toys and games market. [122] For a few categories, such as electronics, home hardware, office supplies and children’s toys, the products are displayed at the center of the store Rival retail stores are forced to reduce their prices in a given geographic area.Toys “R” Us and Australia’s Bunnings(hardware, DIY and outdoor supplies) and Officeworks (stationery and supplies for home office and small office). Some category killers redefine the category. For example, Australia’s Bunnings has a wide range of products, including kitchen cabinetry, craft supplies, gardening needs and outdoor furniture. Similar Officeworks straddles the boundary between stationery supplies, office furniture and digital communications devices in its quest to provide for all the needs of the retail consumer and the small, home office.

Chain store

Chain store is one of a series of stores owned by the same company and selling the same or similar merchandise. [123] Chain stores and economies of scope (eg, centralised warehousing, marketing, promotion and administration) and cost savings in the form of lower prices.

Concept store

Concept stores are limited to a limited number of brands or a single brand. They are generally operated by the brand that controls them. Example: L’OCCITANE in Provence . The limited size and offering of L’OCCITANE’s stores is too small to be considered a specialty store. However, a concept store goes beyond merely selling products, and instead offers an immersive customer experience built around the way that has made fits with the customer’s lifestyle. [124] Examples include Apple’s concept stores, Kit Kat’s concept store in Japan.

Co-operative store

A co-operative store ; also known as a co-op or coop, is a venture owned and operated by consumers to meet their social, economic and cultural needs. [125]

Convenience store

A convenience store provides limited amount of merchandise with a speedy checkout. This awning is ideal for emergency and immediate purchase consumables as it Operates Often with extended hours, stocking every day. [126]

Department store

Department stores are very large offering a wide assortment of both “soft” and “hard” goods which often bear a resemblance to a collection of specialty stores. A retailer of such store carries a variety of categories and has a broad assortment of goods at moderate prices. They offer considerable customer service. [127]

Destination store

A destination store is one that customers will initiate a trip specifically to visit, sometimes over a large area. These stores are often used to ” anchor ” a shopping mall or plaza, which is capitalized upon by smaller retailers. [128]

Demographic

Retailers that aim at one particular segment (eg, high-end retailers focusing on wealthy individuals or niche market).

Discount store

Discount stores tend to offer a wide array of products and services, but they compete mainly on price. They offer extensive assortments of merchandise at prices lower than other retailers and are designed to be affordable for the market served. In the past, less fashion-oriented brands. HOWEVER, in more recent years companies Such As TJX Companies (TJ Maxx and Marshalls Own) and Ross Stores are discount store operations Offering increasingly fashion-oriented brands were larger scale. [129]

E-tailer

The customer can shop and order through the internet at the customer’s doorstep or an e-tailer . In some cases, e-retailers use drop shipping technique. They accept the payment for the product and the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for those who are interested in shopping . [130]

Hawkers

Hawkers also known as a peddler , costermonger or street vendor; it is portable. Hawkers typically operate in such places as streets, squares, public parks or gardens or entrances of high traffic such as zoos, music and entertainment venues. [131] Hawkers are a relatively common sight across Asia.

Hypermarkets

A hypermarket is also known as hypermart. The operating cost is comparatively less than other retail formats; may be defined as “a combined supermarket and discount store, at least 200,000 square feet (18580 square meters) or larger, that sells a wide variety of food and general merchandise at a low price.” [132]

General store

A general store is a store that supplies the necessities of the local community and is often located in rural areas with low densities. In areas of very low population density, a general store may be the only one within the range of miles. The general store carries a very broad product assortment – from foodstuffs and pharmaceuticals through to hardware and fuel. In addition, a general service provider may provide essential services such as postal services, banking services, and agency services and may also act as an agent for farm equipment and stock-food suppliers. [133]

Mall

A shopping mall has a range of retail shops at a single outlet. Retail outlets can include food and entertainment, grocery, electronics and fashion located under one roof. Malls provide 7% of retail revenue in India, 10% in Vietnam, 25% in China, 28% in Indonesia, 39% in the Philippines, and 45% in Thailand. [134] Malls are typically managed by a central management / marketing authority which ensures that the mall attracts the right type of retailer and an appropriate retail mix.

Mom-and-Pop store

A small retail outlet owned and operated by an individual or family. Focuses on a relatively limited and selective set of products.

Pop-up retail store

A pop-up retail store is a temporary retail outlet that may be open for a short period of time or possibly a special occasion or holiday period. The key to the success of a pop-up is novelty in the merchandise. [135]

Retail market

The retail market is defined as the retail market of all products, packed and unpacked where the sale is to end users. [136] Globally, different terms may be used to refer to a retail market. For instance, in the Middle East, a market place May Be Known as a bazaar or souk / bazaar

Market square

A market square is a city where traders set up stalls and buyers browse the stores. This kind of market is very old, and is still in the world.

Specialty store

A specialty ( BE : specialty) has a narrow marketing focus – or specializing on specific merchandise, such as toys, footwear, or clothing, or on a target audience, such as children, tourists, or plus-size women. [137] Size of store varies – some specialty stores might be such toys as “R” Us Toys , Foot Locker , and The Body Shop , while others might be small, individual shops such as Nutters of Savile Row . [137]Such stores, regardless of size, tend to have a greater extent of the specialist than general stores, and generally offer specialist product knowledge valued by the consumer. Pricing is usually not a priority when consumers are deciding upon a specialty store; factors such as branding image, selection choice, and purchasing assistance are seen as important. [137] They Differ from department stores and supermarkets qui carry a wide-range of merchandise. [138]

Supermarket

A supermarket is a self-service store consisting mainly of grocery and non-food items. [139] They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and 40,000 square feet (3,700 m 2 ). Example: SPAR supermarket.

Variety store

Variety stores offer extremely low-cost goods, with a vast array of selection. The downfall to this item is not very high quality. [140]

Vending machine

The vending machine is a machine that can drop the money in the machine which exempts the customer’s selection. The vending machine is a pure self-service option. Machines may carry a phone number which customers can call in the event of a fault. [141]

Some stores take a no frills approach, while others are “mid-range” or “high end”, depending on what income level they target.

Warehouse club

Warehouse clubs are membership-based retailers, which are small and large, and are small in size, which makes these clubs attractive to both bargain hunters and small business owners. The clubs are able to keep the prices down. In addition, customers may be required to pay annual membership fees in order to shop. [142]

Warehouse store

Warehouse stores are retailers housed in warehouses, and offer low-cost, often high-quantity goods with minimal services, eg goods are piled on pallets or steel shelves. [143]

Other retail types

Other types of retail store include:

  • Automated retail stores – self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples include ZoomShops and Redbox .
  • Big-box stores – stores, discount, general merchandise, and warehouse stores.
  • Second-hand retail
Main article: Second-hand shop
See also: Charity shop

Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates goods to the shop to be sold. In give-away shops goods can be taken free.

  • Pawnbrokers Another form is the pawnshop , in which goods are sold as collateral for loans. There are also ” consignment ” shops, which are where the item is located. The advantage of selling an item is that of the buyer. E-tailers like OLX and Quikr also offer second-hand goods.

Retailers can opt for a format that is different from the rest of the world, based on their customer demographics, lifestyle and purchase behavior. A good format will lend a hand to display products and spares sales.

Global top ten retailers

China is currently the largest retail market in the world. [144]

Worldwide top ten retailers [145]
Rank Company Country of origin 2015 revenue (US $ million) Dominant format 2015 Number of countriesof operation 2015
1 Walmart  United States $ 482.130 Hypermarket / Supercenter / Superstore 30
2 Costco  United States $ 116.199 Cash & Carry / Warehouse Club 10
3 Kroger  United States $ 109.830 Supermarket 1
4 Schwarz Gruppe (Lidl)  germany $ 94.448 Discount Store 26
5 Walgreens  United States $ 89.631 Drug Store / Pharmacy 10
6 The Home Depot  United States $ 88.519 Home Improvement 4
7 crossroads  la France $ 84.856 Hypermarket / Supercenter / Superstore 35
8 Aldi  germany $ 82.164 Discount Store 17
9 Tesco  United Kingdom $ 81.019 Hypermarket / Supercenter / Superstore 10
10 Amazon  United States $ 79.268 Non-Store 14

Competition

Retail stores may or may not be competitive with their pricing, product availability, and other operations. A 2006 survey found that only 38% of retail stores in India thought they faced more than slight competition. [146] Competition also affected in Kazakhstan, Bulgaria, and Azerbaijan. In all countries the main competition was domestic, not foreign. [147]

Country  % of retail stores facing competition [148]
india 38%
kazakhstan 44%
bulgaria 46%
azerbaijan 48%
uzbekistan 58%
armenia 58%
georgia 59%
kyrgyzstan 59%
russia 62%
belarus 64%
croatia 68%
romania 68%
Ukraine 72%
turkey 73%
serbia 74%
tajikistan 74%
slovenia 77%
latvia 78%
Bosnia and Herzegovina 79%
moldova 79%
Czech Republic 80%
Slovakia 80%
poland 83%
hungary 87%
estonia 88%
lithuania 88%
Macedonia 88%
albania 89%

Retail trade provides 9% of all jobs in India and 14% of GDP. [149]

Challenges

To achieve and maintain a foothold in an existing market, a prospective retail establishment must overcome the following hurdles :

  • Regulatory barriers
    • Restrictions on real estate purchases, especially as a result of local governments and against “big-box” chain retailers ;
    • Restrictions on foreign investment in retailers, in which the absolute amount of financing and the percentage share of voting stock are held ( eg , common stock ) purchased;
  • Unfavorable taxation structures , especially those designed to penalize or keep out “big box” retailers (see “Regulatory” above);
  • Absence of developed supply chain and integrated IT management;
  • High competitiveness among existing market participants and resulting in low margins , caused in part by
    • Constant advances in product design resulting in constant threat of obsolescence and price declines for existing inventory ; and
  • Lack of well educated and / or trained work force.
    • Lack of educational infrastructure enabling forward prospective market to respond to the above challenges.

Statistics for national retail sales

United States

The United States retail sector features the largest number of lucrative retailers in the world. A 2012 Deloitte postponement published in STORES Indicated That magazine of the world’s top 250 dirty Largest retailers by retail revenue in fiscal year 2010, 32% Of Those retailers Were based in the United States, and Those 32% Accounted for 41% of the total retail sales revenue of the top 250. [150]

Since 1951, the US Census Bureau has published the Retail Sales report every month. It is a measure of consumer spending , an important indicator of the US GDP . Retail companies provide data on the value of their retail sales and inventories. A sample of 12,000 firms is included in the final survey and 5,000 in the advanced one. The advanced estimated data is based on a subsample of the US CB complete retail & food services sample. [151]

Central Europe

In 2011, the Central Europe was worth nearly € 107bn, 2.8% more than the previous year when expressed in local currencies. The increase was generated by the discount stores and supermarket segments, and was driven by the skyrocketing prices of foodstuffs. This information is based on the latest PMR report entitled Grocery retail in Central Europe 2012 [152]

World

National accounts show a combined total of retail and wholesale trade, with hotels and restaurants. in 2012 the sector provides a fifth of GDP in tourist-oriented economies, Brazil, Pakistan, Russia, and Spain. In this article, this fraction is an increase over 1970, but there are many other countries where the sector has been declining since 1970, when in other words, when other sectors have replaced its role in the economy. In the United States the sector has declined to 19% of GDP to 14%, although it has risen in absolute terms from $ 4,500 to $ 7,400 per capita per year. In China the sector has grown from 7.3% to 11.5%, and in India even more, from 8.4% to 18.7%. Emarketer predicts China will have the largest retail market in the world in 2016.[153]

In 2016, China became the largest retail market in the world. [144]

Retail trade, wholesale, hotels and restaurants (data from the United Nations) [154]
Economy As% of GDP, 1970 As% of GDP, 2012 1970 value per capita (2012 prices) 2012 value per capita
afghanistan 13.1 8.4 $ 140 $ 58
albania 11.5 22.5 $ 188 $ 858
algeria 17.3 11.9 $ 572 $ 639
andorra 40.5 26.5 $ 17.532 $ 10.915
angola 12.6 15.0 $ 513 $ 839
Anguilla 33.9 27.8 $ 2.166 $ 5,577
Antigua and Barbuda 26.4 26.8 $ 1,081 $ 3,540
argentina 15.4 15.7 $ 1,041 $ 1.825
armenia 15.2 $ 510
aruba 26.9 19.1 $ 1,140 $ 4,757
australia 11.4 11.7 $ 3.736 $ 7,960
austria 17.4 18.8 $ 3,281 $ 8.782
azerbaijan 9.0 $ 668
bahamas 28.0 24.5 $ 5,335 $ 5,299
bahrain 12.5 6.4 $ 3.046 $ 1,478
bangladesh 15.9 15.1 $ 61 $ 124
barbados 26.1 24.3 $ 2,879 $ 3,890
belarus 16.8 $ 1,127
belgium 12.9 14.2 $ 2,606 $ 6.189
belize 17.0 20.3 $ 297 $ 972
Benign 17.7 17.4 $ 89 $ 131
Bermuda 17.6 11.2 $ 8.907 $ 9.648
bhutan 8.2 8.2 $ 30 $ 205
bolivia 9.1 11.1 $ 168 $ 286
Bosnia and Herzegovina 17.9 $ 807
botswana 9.2 16.8 $ 60 $ 1.206
brazil 16.4 21.3 $ 756 $ 2.413
British Virgin Islands 19.7 27.2 $ 2,178 $ 8.821
Brunei Darussalam 1.0 3.7 $ 495 $ 1.536
bulgaria 14.6 13.8 $ 272 $ 966
Burkina Faso 14.9 14.2 $ 46 $ 92
Burundi 8.1 18.9 $ 16 $ 43
cambodia 16.6 14.5 $ 86 $ 137
cameroon 27.0 20.4 $ 270 $ 245
Canada 13.6 13.0 $ 3,586 $ 6,788
Cape Verde 24.5 18.7 $ 269 $ 718
Cayman Islands 12.0 12.2 $ 3,544 $ 7,175
Central African Republic 14.0 13.5 $ 100 $ 65
chad 20.5 12.6 $ 122 $ 103
chile 14.9 11.7 $ 780 $ 1,801
china 7.3 11.5 $ 20 $ 700
China: Hong Kong SAR 19.1 29.3 $ 1,197 $ 10.772
China: SAR Macao 8.0 14.9 $ 592 $ 11.629
colombia 13.0 12.4 $ 439 $ 959
Comoros 26.2 14.5 $ 232 $ 125
Congo 13.2 5.4 $ 256 $ 185
Cook Islands 13.7 39.6 $ 1,069 $ 5.912
Costa Rica 19.9 16.3 $ 805 $ 1,531
croatia 15.4 $ 2,012
Cuba 18.4 15.2 $ 432 $ 959
cyprus 13.6 18.8 $ 958 $ 4,975
Czech Republic 13.2 $ 2,429
Czechoslovakia (Former) 8.0 $ 127
Democratic Republic of North Korea 11.7 18.3 $ 231 $ 107
Democratic Republic of the Congo
denmark 20.5 15.5 $ 6.169 $ 8.708
Djibouti 45.0 18.6 $ 1,470 $ 294
dominica 9.6 15.0 $ 163 $ 1,046
Dominican Republic 17.2 18.7 $ 270 $ 1.073
ecuador 8.3 12.6 $ 195 $ 713
egypt 11.0 14.4 $ 75 $ 454
El Salvador 22.6 21.2 $ 534 $ 804
Equatorial Guinea 6.4 0.9 $ 56 $ 185
eritrea 19.4 $ 98
estonia 14.0 $ 2,432
ethiopia 18.6 $ 84
Ethiopia (Former) 8.4
fiji 8.3 18.6 $ 216 $ 848
finland 12.3 13.3 $ 2.268 $ 6,103
la France 14.8 15.0 $ 2,969 $ 5.933
French Polynesia 14.7 16.1 $ 2,142 $ 4,212
Gabon 28.1 12.1 $ 2,918 $ 1,787
gambia 27.1 28.8 $ 143 $ 147
georgia 18.9 $ 685
germany 12.2 11.4 $ 2,273 $ 4.736
Ghana 5.3 10.9 $ 58 $ 175
greece 19.6 20.2 $ 2,469 $ 4,527
greenland 14.0 10.5 $ 2,219 $ 4,326
grenada 18.2 12.3 $ 294 $ 913
Guatemala 17.5 21.6 $ 385 $ 720
guinea 34.0 16.2 $ 132 $ 86
Guinea-Bissau 20.7 19.4 $ 124 $ 99
guyana 18.9 15.1 $ 388 $ 543
Haiti 17.4 18.4 $ 168 $ 130
Honduras 17.2 17.1 $ 247 $ 399
hungary 9.8 14.1 $ 531 $ 1,760
iceland 11.3 11.0 $ 1,873 $ 4,585
india 8.4 18.7 $ 31 $ 283
indonesia 17.7 13.9 $ 120 $ 494
Iran (Islamic Republic of) 10.6 11.6 $ 473 $ 834
iraq 8.2 6.4 $ 215 $ 290
ireland 17.6 18.0 $ 2,293 $ 8,295
Israel 9.8 10.0 $ 1,346 $ 3,145
italy 16.0 15.0 $ 2,755 $ 4.963
Ivory Coast 21.7 14.7 $ 353 $ 181
jamaica 19.4 22.4 $ 1.056 $ 1,197
Japan 15.6 13.9 $ 3,004 $ 6,525
jordan 17.9 10.1 $ 478 $ 445
kazakhstan 16.8 $ 2,086
Kenya 6.8 13.2 $ 49 $ 125
kiribati 12.4 8.6 $ 439 $ 150
Kosovo 18.1 $ 508
kuwait 8.3 3.2 $ 13.693 $ 1,797
kyrgyzstan 19.7 $ 233
Laos People’s DR 14.2 20.3 $ 44 $ 278
latvia 17.9 $ 2,467
lebanon 31.4 27.6 $ 2,829 $ 2.522
Lesotho 13.0 9.0 $ 46 $ 108
Liberia 11.1 5.0 $ 106 $ 18
Libya 2.8 4.9 $ 543 $ 763
liechtenstein 19.9 17.8 $ 12.763 $ 28.361
lithuania 19.9 $ 2.782
luxembourg 13.8 13.4 $ 5,010 $ 14.141
Madagascar 8.7 11.0 $ 70 $ 49
Malawi 3.7 19.8 $ 10 $ 70
malaysia 12.4 16.5 $ 229 $ 1,716
Maldives 29.8 30.8 $ 252 $ 2,373
Mali 7.3 16.2 $ 23 $ 112
Malta 28.7 15.8 $ 1,104 $ 3,238
Marshall Islands 24.5 16.1 $ 531 $ 607
mauritania 2.1 7.1 $ 20 $ 72
mauritius 10.0 19.3 $ 167 $ 1,782
mexico 19.3 17.8 $ 1.063 $ 1,739
Micronesia 13.1 15.1 $ 219 $ 477
Monaco 39.1 30.3 $ 34.091 $ 46.027
mongolia 21.4 11.9 $ 237 $ 439
Montenegro 22.6 $ 1.475
montserrat 19.4 7.6 $ 1.051 $ 974
Morocco 22.5 12.4 $ 253 $ 365
mozambique 12.7 17.6 $ 31 $ 102
Myanmar 25.9 20.1 $ 48 $ 226
namibia 8.0 14.7 $ 326 $ 832
nauru 14.8 16.8 $ 7,812 $ 2,014
Nepal 4.7 15.4 $ 14 $ 101
Netherlands 16.4 15.8 $ 3.702 $ 7.283
Netherlands Antilles 16.4 18.2 $ 1.417 $ 3,349
New Caledonia 34.7 13.3 $ 9,624 $ 5,169
New Zealand 15.5 12.2 $ 3,607 $ 4,689
Nicaragua 15.3 16.5 $ 352 $ 289
Niger 10.6 14.1 $ 71 $ 56
Nigeria 14.6 15.9 $ 148 $ 247
norway 16.7 8.5 $ 6,109 $ 8.521
Oman 1.7 7.7 $ 111 $ 1,822
Pakistan 18.8 20.6 $ 99 $ 248
palau 16.3 31.2 $ 1.565 $ 3,200
Panama 16.8 19.6 $ 497 $ 1,864
Papua New Guinea 13.9 9.3 $ 243 $ 204
paraguay 18.3 19.9 $ 304 $ 771
peru 14.2 18.6 $ 583 $ 1,271
philippines 10.7 19.4 $ 153 $ 501
poland 9.2 20.2 $ 398 $ 2,590
Portugal 13.7 19.6 $ 1,119 $ 3,926
Puerto Rico 16.7 9.4 $ 2.024 $ 2,635
Qatar 5.0 5.6 $ 5,647 $ 5,208
Korea, South 17.1 11.8 $ 345 $ 2,712
moldova 17.8 $ 367
romania 3.1 7.1 $ 73 $ 557
Russian Federation 20.7 $ 2,934
Rwanda 9.9 15.7 $ 35 $ 97
Saint Kitts and Nevis 8.4 12.6 $ 256 $ 1,800
Saint Lucia 20.6 23.4 $ 527 $ 1.707
samoa 14.8 23.6 $ 312 $ 851
San Marino 15.8 12.9 $ 5.282 $ 7.643
Sao Tome and Principe 25.5 26.2 $ 273 $ 363
Saudi Arabia 4.6 8.2 $ 799 $ 2,067
Senegal 22.7 20.4 $ 218 $ 207
serbia 11.0 $ 582
seychelles 32.7 29.4 $ 1.039 $ 3,285
Sierra Leone 12.9 7.6 $ 93 $ 55
singapore 27.8 19.5 $ 2,008 $ 10.179
Slovakia 26.6 $ 4,470
slovenia 14.4 $ 3.155
Solomon Islands 10.2 10.5 $ 121 $ 193
somalia 9.3 10.6 $ 21 $ 14
South Africa 14.4 16.0 $ 847 $ 1,171
South Sudan 15.4 $ 143
spain 15.1 21.4 $ 1,956 $ 6,060
Sri Lanka 14.5 20.8 $ 94 $ 586
St. Vincent and the Grenadines 12.6 16.5 $ 231 $ 1.045
State of Palestine 16.7 18.4 $ 136 $ 448
sudan 16.8 $ 232
Sudan (Former) 16.8 $ 0
suriname 18.3 23.3 $ 915 $ 2,183
swaziland 15.5 9.8 $ 197 $ 306
sweden 12.1 12.8 $ 3,315 $ 7,056
switzerland 19.9 17.8 $ 10.641 $ 14.080
Syrian Arab Republic 20.4 22.7 $ 184 $ 482
tajikistan 20.3 $ 193
Macedonia 16.5 $ 749
thailand 24.3 18.0 $ 239 $ 1.039
East Timor 4.0 $ 195
Togo 23.5 8.2 $ 195 $ 49
tonga 12.7 14.6 $ 214 $ 646
Trinidad and Tobago 18.9 17.1 $ 1,323 $ 2,966
tunisia 11.7 13.5 $ 147 $ 558
turkey 11.1 16.5 $ 437 $ 1,757
turkmenistan 4.2 $ 274
Turks and Caicos Islands 38.2 38.0 $ 1.557 $ 8,520
tuvalu 9.5 11.2 $ 182 $ 451
Tanzania : Mainland, see also Zanzibar 15.0 15.8 $ 51 $ 96
uganda 11.8 22.3 $ 50 $ 133
Ukraine 17.5 $ 679
United Arab Emirates 15.4 12.1 $ 24.122 $ 5.024
United Kingdom 15.3 16.5 $ 2,662 $ 6,490
United States 19.0 14.5 $ 4,488 $ 7,436
Uruguay 12.9 16.5 $ 810 $ 2,419
USSR (Former) 8.1
uzbekistan 9.9 $ 178
vanuatu 18.2 21.4 $ 266 $ 651
Venezuela 9.5 16.4 $ 1.152 $ 2,099
Vietnam 12.9 16.8 $ 39 $ 289
Yemen 16.3 $ 224
Yemen Arab Republic (Former) 13.7
Yemen Democratic (Former) 21.2
Yugoslavia (Former) 10.4
zambia 12.6 15.0 $ 244 $ 229
Zanzibar 18.2 $ 119
Zimbabwe 14.9 10.7 $ 125 $ 77

Consolidation

Among retailers and retails chains a lot of consolidation has appeared over the last couple of decades. Between 1988 and 2010, worldwide 40,788 mergers & acquisitions with a total known value of 2,255 trillion USD have been announced. [155] The largest transactions with involvement of retailers in the United States: the acquisition of Albertson’s Inc. for 17 bil. USD in 2006, [156] the merger between Federated Department Stores Inc. and May Department Stores valued at 16.5 bil. USD in 2005 [157] – now Macy’s , and the merger between Kmart Holdings Corp and Sears Roebuck & Cowith a value of 10.9 bil. USD in 2004. [158]