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 for the 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 businessto-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.
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 stores. 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.
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 small retail outlet owned and operated by an individual or
family. Focuses on a relatively limited and selective set of products.
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.
Boutiques or Concept stores are similar to specialty stores. Concept stores are
very small in size, and only ever stock one brand. They are run by the brand
that controls them. An example of brand that distributes largely through their
own widely distributed concept stores is L'OCCITANE en Provence. The
limited size and offering of L'OCCITANE's stores are too small to be
considered a specialty store proper.
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 andRedbox.
Big-box stores encompass larger department, discount, general merchandise,
and warehouse stores.
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.

Global top five retailers[edit]

Worldwide Top Five Retailers[2]
Retail Sales Rank Company Country of Origin 2012 group revenue (US $mil)
1
Walmart US
2
Carrefour France
3
Tesco
UK
4
Kroger
US
5
Metro AG Germany

Operations[edit]
Retail pricing[edit]
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 beprice 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.
Staffing[edit]

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]
Transfer mechanisms[edit]
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 was
common in the 20th century, either from a catalog, newspaper, television
advertisement or a local restaurant menu, for immediate service (especially
for pizza delivery), remaining in common use for food orders. Internet
shopping - a form of delivery - has eclipsed phone-ordering, and, in several
sectors - such as books and music - all other forms of buying. 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.
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 transmitted either over wires or air-waves,

and is reconstituted by a device which the consumer controls (such as an MP3

player; see digital rights management). The digital sale of models for 3D
printing also fits here, as do the media leasing types of services, such
as streaming.

Second-hand retail[edit]
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.

Challenges[edit]
To achieve and maintain a foothold in an existing market, a prospective retail
establishment must overcome the following hurdles:
Regulatory barriers including
o Restrictions on real estate purchases, especially as imposed by local
governments and against "big-box" chain retailers;
o 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

o 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
o Lack of educational infrastructure enabling prospective market entrants
to respond to the above challenges.

Sales techniques[edit]
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 amerchandising 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 marketingprograms 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.

Customer service[edit]
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] For retail store owners, it is extremely important to train
yourself and your staff to provide excellent customer service skills. By providing
excellent customer service, you build a good relationship with the customer and
eventually will attract more new customers and turn them into regular customers.
Looking at long term perspectives, excellent customer skills give your retail business
a good ongoing reputation and competitive advantage.[5]

Statistics for national retail sales[edit]

United States[edit]
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. [6]

U.S. Monthly Retail Sales, 19922010

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.[7]
CE region[edit]
In 2011 the grocery market in six Central European[disambiguation needed] (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[8]