Few can answer exactly who the retailers are, but almost every one of us is a client of these same retailers. And all because retail has become a part of the lives of millions of people.
Retail and retailers
The term "retail" comes from the English word retail, which means "retail". Thus, this term means the sale of goods to the final consumer, in other words - retail trade. Accordingly, companies that engage in such trade are called retailers.
Despite the fact that retailers sell products that are not intended for subsequent resale, the scale of their trade is very large. They can be assessed by a resident of any large city where there are hypermarkets of products, electronics, household appliances, etc. All of them belong to the retail segment.
Retailers work with wholesale volumes of goods, but sell them at retail. This scheme functions thanks to special trading technologies. In another way, they are also called retail technologies, and they are aimed at the mass consumer. The main task is to hire a minimum of personnel who are able to serve a maximum of consumers. Due to this, costs are reduced, costs per client are reduced. As a result, the competitiveness of the retailer is growing.
Self-service stores, payment terminals and ATMs can be cited as examples of retail technologies.
Targeting different classes
Retail is distinguished by a wide variety of products and services offered. Moreover, they are all collected in one place. The class of products, the level of personnel and consumers can be very different - this approach is used in any industry, be it grocery trading or banking services. Retail has several classes: economy, medium, premium, luxury, deluxe. They differ in the level of applied retail technology.
Increased attention is paid to attracting buyers, in particular, how the goods are located (on the display case, on the shelf, at the entrance, etc.). The design of the entire retail network is carefully thought out.
About retailer income
The main income of retailers is generated from the trade margin (margin). However, the sources of profit may be different. For example, many Russian retail chains, negotiating the sale of a certain product, require a special bonus, which is a payment for entering the network. Promotional actions, advertising and sale of retail space also allow retailers to receive additional profit.
Today retail is an independent and very powerful branch of the world economy.