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