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Retail - Wikipedia, the free encyclopedia

Retail
From Wikipedia, the free encyclopedia Jump to: navigation, search "Retail stores" redirects here. For the comic strip by Norm Feuti, see Retail (comic strip). This article includes a list of references, but its sources remain unclear because it has insufficient inline citations . Please help to improve this article by introducing more precise citations. (March 2012) Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. Retailing includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public. Shops may be on residential streets, streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

Contents
1 Etymology 2 Types of retail outlets 3 Global Top Five Retailers 4 Operations 4.1 Retail pricing 4.2 Staffing 4.3 Transfer mechanisms 5 Second-hand retail 6 Challenges 7 Sales techniques 8 Customer service 9 Statistics for national retail sales 9.1 United States 9.2 CE region 10 Consolidation 11 See also 12 Further reading
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13 References 14 External links

[edit] Etymology

The world's only Garmin retail storefront is located on the Magnificent Mile in Chicago. Retail comes from the Old French word tailler, which means "to cut off, clip, pare, divide" in terms of tailoring (1365). It was first recorded as a noun with the meaning of a "sale in small quantities" in 1433 (from the Middle French retail, "piece cut off, shred, scrap, paring").[1] Like in French, the word retail in both Dutch and German also refers to the sale of small quantities of items.

[edit] Types of retail outlets

San Juan de Dios Market in Guadalajara, Jalisco

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Inside a supermarket in Russia

Walnut Market in Katra, Jammu & Kashmir, India A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world. In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows: Food products Hard goods or durable goods ("hardline retailers") - appliances, electronics, furniture, sporting goods, etc. Goods that do not quickly wear out and provide utility over time. Soft goods or consumables - clothing, apparel, and other fabrics. Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them. There are the following types of retailers by marketing strategy: Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands.
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Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee; Variety stores - these offer extremely low-cost goods, with limited selection; Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). Mom-And-Pop : is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder. Specialty stores: A typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores. General store - a rural store that supplies the main needs for the local community; Convenience stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases as it often works with extended hours, stocking everyday; Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. Supermarkets: is a self-service store consisting mainly of grocery and limited products on non food items. 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 m2). Example: SPAR supermarket. Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Category killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon, Pennyful and eBay. Vending Machines: This is an automated piece of equipment wherein customers can drop the money in the machine and acquire the products. Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target. Other types of retail store include: Automated Retail stores are 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 encompass larger department, discount, general merchandise, and warehouse stores.
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Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behaviour. A good format will lend a hand to display products well and entice the target customers to spawn sales.

[edit] Global Top Five Retailers

Worldwide Top Five Retailers [2] 2010 group Retail Country Company revenue (US Sales Rank of Origin $mil) 1 Walmart US $421,849 2 3 4 5 Carrefour France $121,519 Tesco UK $94,244 Metro Germany $89,311 AG Kroger US $82,189

[edit] Operations
[edit] Retail pricing
The pricing technique 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 simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can be price discrimination, where the sale price is dependent upon who the customer is. For example, a customer may have to pay more if the seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for youths, students, or senior citizens..

[edit] Staffing
Because patronage at a retail outlet varies flexibility in scheduling is desirable. Employee scheduling software is sold which, using known patterns of customer patronage, 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. Conforming staff utilization to staffing needs requires a flexible workforce which is available when needed but does not have to be paid when they are not, part-time workers; as of 2012 70% of retail workers in the United States were part-time. This may result in financial problems for the workers, who while they are required to be available at all times if their work hours are to be maximized, may not have sufficient income to meet their family and other obligations.[3]

[edit] Transfer mechanisms

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There are several ways in which consumers can receive goods from a retailer: 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 expensive items (e.g. jewelry) 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? ] Delivery, where goods are shipped directly to consumer's homes or workplaces. Mail order from a printed catalog was invented in 1744 and was common in the late 19th and early 20th centuries. Ordering by telephone is now common, either from a catalog, newspaper, television advertisement or a local restaurant menu, for immediate service (especially for pizza delivery). 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 may be handled and examined prior to purchase

[edit] Second-hand retail

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 for free. Another form is the pawnshop, in which goods are sold that were used as collateral for loans. There are also "consignment" shops, which are where a person can place an item in a store and if it sells, the person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop gives the item exposure to more potential buyers.

[edit] Challenges
To achieve and maintain a foothold in an existing market, a prospective retail establishment must overcome the following hurdles: Regulatory barriers including Restrictions on real estate purchases, especially as imposed by local governments and against "bigbox" chain retailers; Restrictions on foreign investment in retailers, in terms of both absolute amount of financing provided and percentage share of voting stock (e.g., 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 low profit margins, caused in part by Constant advances in product design resulting in constant threat of product obsolescence and price declines for existing inventory; and Lack of properly educated and/or trained work force, often including management, caused in part by
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Lack of educational infrastructure enabling prospective market entrants to respond to the above challenges.

[edit] Sales techniques

Behind the scenes at retail, there is another factor at work. Corporations and independent store owners alike are always trying to get the edge on their competitors. One way to do this is to hire a merchandising solutions company to design custom store displays that will attract more customers in a certain demographic. The nation's largest retailers spend millions every year on in-store marketing programs that correspond to seasonal and promotional changes. As products change, so will a retail landscape. Retailers can also use facing techniques to create the look of a perfectly stocked store, even when it is not. 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, generating foot traffic, which is capitalized upon by smaller retailers.

[edit] Customer service

Customer service is the "sum of acts and elements that allow consumers to receive what they need or desire from your retail establishment." It is important for a sales associate to greet the customer and make himself available to help the customer find whatever he needs. When a customer enters the store, it is important that the sales associate does everything in his power to make the customer feel welcomed, important, and make sure he leaves the store satisfied. Giving the customer full, undivided attention and helping him find what he is looking for will contribute to the customer's satisfaction.[4]

[edit] Statistics for national retail sales

[edit] United States
The United States retail sector features the largest number of large, lucrative retailers in the world. A 2012 Deloitte report published in STORES magazine indicated that of the world's top 250 largest retailers by retail sales 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.[5]

U.S. Monthly Retail Sales, 1992

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2010 Since 1951, the U.S. 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 firms provide data on the dollar 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 from the US CB complete retail & food services sample.[6]

[edit] CE region
In 2011 the grocery market in six Central European (CE) countries was worth nearly 107bn, 2.8% more than the previous year when expressed in local currencies. The increase was generated foremost 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[7]

[edit] 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 bil. USD have been announced.[8] The largest transactions with involvement of retailers in/from the United States have been: the acquisition of Albertson's Inc. for 17 bil. USD in 2006,[9] the merger between Federated Department Stores Inc with May Department Stores valued at 16.5 bil. USD in 2005[10] - now Macy's, and the merger between Kmart Holding Corp and Sears Roebuck & Co with a value of 10.9 bil. USD in 2004.[11]

[edit] See also

List of department stores by country Point of sales Point of sales terminal Retail concentration Retail design Retail software Shopping mall Specialist store Stand-alone store Store manager Tuangou Visual merchandising Wardrobing Types of store or shop: Anchor store

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Anchor store Big-box store Chain store Confectionery store Convenience store Department store Discount store General store Grocery store Hardware store Health food store Hobby store Hypermarket Liquor store Newsagent Online shopping Outlet store Pet store Pop-up retail Specialty store State store Store-within-a-store Supermarket Surplus store Survival store Toy store Variety store Warehouse club Warehouse store

Retail - Wikipedia, the free encyclopedia

[edit] Further reading

Krafft, Manfred; Mantrala, Murali K. (eds.) (2006). Retailing in the 21st century: current and future trends. New York: Springer Verlag. ISBN 3-540-28399-4.

[edit] References
1. ^ Harper, Douglas. "retail". Online Etymology Dictionary. Retrieved 2008-03-16. 2. ^ "2011 Top 250 Global Retailers". Retrieved in January 2012. 3. ^ Steven Greenhouse (October 27, 2012). "A Part-Time Life, as Hours Shrink and Shift". The New York Times. Retrieved October 28, 2012. 4. ^ Philip H. Mitchell 2008, Discovery-Based Retail, Bascom Hill Publishing Group ISBN 978-09798467-9-3 5. ^ Deloitte, Switching Channels: Global Powers of Retailing 2012, STORES, January 2012, G20.
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6. ^ US Census Bureau Retail sales Retail SalesRetail Sales Definition 7. ^ Grocery retail in Central Europe 2012 Retail in Central Europe 8. ^ [full citation needed] "Statistics on Mergers & Acquisitions (M&A) - M&A Courses | Company Valuation Courses | Mergers & Acquisitions Courses". Imaa-institute.org. Retrieved 2012-11-02. 9. ^ [full citation needed] [dead link ] 10. ^ [full citation needed] "Press Release - Investor Relations - Macy's Inc". Phx.corporate-ir.net. Retrieved 2012-11-02. 11. ^ [full citation needed] "Sears Holdings Press Releases". Searsholdings.com. Retrieved 2012-11-02.

[edit] External links

Look up retailing or retail in Wiktionary, the free dictionary. Wikibooks has a book on the topic of: Marketing ECRoPEDIA - Free Global Collection of Retail/FMCG Best practices by ECR Community Investopedia.The Industry Handbook: The Retailing Industry National Retail Federation (U.S.-based trade association) 2011 Top 250 Global Retailers v t e

Media manipulation
Bias Crowd psychology Deception Dumbing down False balance Half-truths Machiavellianism Media Obfuscation Persuasion Alternative media Boycott Civil disobedience
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Context

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Activism

Culture jamming Demonstrations Guerrilla communication Hacktivism Internet Media Occupations Petitions Protests Youth Billboards False Infomercials Mobiles Modeling Radio Regulation Sex Slogans Testimonials TV Books Broadcast law Burying of scholars Cover-ups Corporate Euphemism Films Historical revisionism Internet Political Religious Self April Fools' Fakelore Fictitious entries Forgery List Literary Racial
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Advertising

Censorship Regulation

Hoaxing

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Urban legend Virus Branding Loyalty Product Product placement Publicity Research Word of mouth Agenda-setting Broadcasting Circus Cycle Infotainment Managing Narcotizing dysfunction Pseudo-event Sensationalism Tabloid journalism

Marketing

News media

Political campaigning

Advertising Astroturfing Attack ad Canvassing Character assassination Charm offensive Election promises Lawn signs Manifestos Name recognition Negative Push polling Smear campaign Wedge issue Bandwagon Crowd manipulation Disinformation Fear mongering Framing
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Propaganda
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Indoctrination Loaded language National mythology Techniques Airborne leaflets False flag Fifth column Information (IT) Lawfare Political Public diplomacy Sedition Subversion Cult of personality Doublespeak Non-apology apology Reputation management Slogans Sound bites Spin Transfer Understatement Weasel words

Psychological warfare

Public relations

Sales

Cold calling Door-to-door Phone Pricing Product demonstrations Promotional merchandise Promotion Retail

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Articles with dead external links from November 2012 Articles lacking in-text citations from March 2012 All articles lacking in-text citations All articles with specifically marked weasel-worded phrases Articles with specifically marked weasel-worded phrases from March 2009

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