1. WHAT IS RETAILING?
The word retailer has been derived from the French word “Retail” which means to sell in small quantities, rather than in gross. It is a commercial transaction in which a buyer intends to consume the good or service through personal, family, or household use. It offer product s for personal or family use, includes all forms of selling to the final consumer and in contrast, wholesalers offer products, generally for business purposes.
2. DISCUSS THE TYPES OF RETAILERS
Independent retailers capitalize on a very targeted customer base and please shoppers in a friendly, folksy way. Word-of-mouth communication is important. These retailers should not try to serve too many customers or enter into price wars.
An independent retailer owns one retail unit. There are 2.2 million independent U.S. retailers—accounting for about 35 percent of total store sales. Seventy percent of independents are run by the owners and their families; these firms generate just 3 percent of U.S. store sales (averaging under $100,000 in annual revenues) and have no paid workers (there is no payroll). The high number of independents is associated with the ease of entry into the marketplace, due to low capital requirements and no, or relatively simple, licensing provisions for many small retail firms. The investment per worker in retailing is usually much lower than for manufacturers, and licensing is pretty routine. Each year, tens of thousands of new retailers, mostly independents, open in the United States. The ease of entry—which leads to intense competition—is a big factor in the high rate of failures among newer firms. One-third of new U.S. retailers do not survive the first year and two-thirds do not continue beyond the third year. Most failures involve independents. Annually, thousands of U.S. retailers (of all sizes) file for bankruptcy protection besides the thousands of small firms that simply close.