Surely you have repeatedly heard the word "retail" in your speech. Initially, this term came from marketing, but today it is actively used in various fields of human activity. Especially often it is used in trade and banking. Do you know what retail is? If not, then this article will help you understand this concept.
Retail: value
Before you understand the modern use of this term, you should find out its origin. How did the word “retail” appear and what does it mean? It came to our speech from the English language and literally translates as "retelling." It would seem that nothing to do with trade. But this is not so.
The market is the most important part of the economy of any country, and its integral components are the sale and purchase of goods. At the same time, they can be implemented in two ways: wholesale and retail. In the first case, as a rule, we are talking about an intermediate stage in the movement of goods from a producer to consumers, in which the intermediary intervenes. In the second sale is carried out directly to the end customer.
“Retail” refers to retail, which is comparable in volume to wholesale. That is, sellers buy goods from manufacturers in bulk and resell them to consumers in the same volume. History repeats itself (how much they bought, so much they sold), which is why the process was called "retelling" or retail.
Retail Features
We have already figured out what retail is. This is the sale of goods to the final buyer. It is carried out with the obligatory use of such elements as a cash register and check, and compliance with the rules of the "Law on the Protection of Consumer Rights". At the same time, a number of features that are characteristic exclusively for retail can be distinguished. These include:
- accessibility - anyone can get a service or buy a product;
- variety of assortment - the presence of many positions and types of products;
- setting retail prices.
The last paragraph is worth focusing on, as it is the economic basis of retail. The retail price is always higher than the wholesale at the trade margin - the difference between the purchase and sale price. This value is the main income of the retailer, although not the only one. Depending on the specific area, the margin can be as 25-30% (trade in products), and all 200%, or even more (trade in clothes, luxury goods). Therefore, even in conditions of sale, sellers, as a rule, do not work at their own expense, and only slightly reduce the size of the trade margin. Most often, retail is a very profitable activity that allows you to earn money without producing anything.
Retail: trading formats
Speaking of what retail is, it should be said about the ways of its implementation. Sale can be carried out by various methods and in different conditions:
- personally;
- by phone;
- through the Internet;
- outside;
- in the shop;
- from home.
However, as a rule, retail trade is conducted in a store. It can have the following formats: supermarket, supermarket, discounter, online shop, convenience store or on the couch. Street retail is particularly popular with retailers. What it is? These are retail premises that are located on the ground floors of buildings. They have all the attributes of a store: shop windows, a cash register and their own separate entrance. This trading format is convenient for buyers living nearby and is beneficial for sellers.
It is also worth mentioning what a retail park is, because in recent years it has been gaining more and more popularity. This is an economic format shopping center consisting of one or two floors and usually located around a parking lot. For the construction of such complexes using cheap designs and technologies, which allows you to set lower rental rates. This makes retail parks interesting and popular with retailers, as well as with buyers who can purchase goods at better prices.
Retail today
Worldwide, retail volume reaches ten trillion dollars today. Russia's share in the world market is about two percent, while its annual growth is observed. In connection with the increase in the well-being of citizens over the past few years, their purchasing power has increased (almost 10% over the year). Today, our country is in eighth place in terms of the retail market, which is not bad at all.
The largest retail chains in our country are X5 Retail, Magnit and Auchan. And the world leader can be called the American retailer Wal-Mart. Its turnover today amounts to more than 400 billion dollars.
