A retailer is a company that operates in the retail sector( supermarket, commercial bank, car showroom or clothing store).
Basic concepts and terms
Retail is a retail store that sells goods or services to the end user. In a broad sense, this concept can be considered as a certain point of sale and, of course, the organization of trade. Under this definition, various types of services can be covered for buyers who freely visit a store to purchase goods.
In the same series of concepts there is a narrower term - retail point. In this case, it is directly about the store as a point of retail. What first comes to mind as an example is the shops and the market. However, referring to historical sources, you can find such a thing as street retail, which implies street trading.
There is another important concept - retail branding, which implies the creation of a brand in a certain trading segment. This is a specific marketing activity, the implementation of which is due to the fierce competit
Retail Technologies in Trade
The main trading technologies used by the retailer are as follows:
- the presence of certain location rules when placing retailers;
- formation of proposals on the grouped assortment of goods to ensure constant demand;
- operation of commercial equipment;
- use of trade marketing;
- a small number of personnel;
- the organization of self-service of buyers in a trading hall;
- automation of the processes of purchasing, accounting and storage of goods.
Features of retail organization
The main feature that a retailer is characterized by is an expanded range of products, services, concentrated in one place. This significantly reduces the cost of maintenance of each individual customer, reduces costs and increases competitiveness. The use of such retail technologies facilitates the retail sale of goods in large batches( even at the level of wholesale sales).
A network retailer is a set of shops of the same format that are united among themselves by the owner( founder), the logistics system, the approach to the commodity policy and purchases. The above elements can significantly reduce costs, offer the buyer fairly low prices compared to non-networked outlets. The presence of such positive factors as low price and constant assortment, network retail will attract a large number of buyers, which will bring him a good profit due to large turnover.
Thus, studies have shown that many buyers make large purchases in network supermarkets about once a week, and daily goods are bought in small shops located near their home.
All trading enterprises, including the largest retailers, receive the basic income from the trade margin for the sold goods. However, this is not the only source of funds. There are some additional services that are paid, for example, by the suppliers of products, a reward for ensuring that a particular product is on a visible shelf. In other words, the retailer's income can partly be the payment for marketing services.
Another source of income - the promotion of shares, advertising, leasing space for trade to other entities that specialize in non-core products for this supermarket.
Large retailers of Russia
One of the most widely developed retail retail chains in Russia is considered to be ACORT. The top retailers include the following: Magnit, Auchan, Metro Cash &Carry, Dixie and others. These super- and hypermarkets to date are implementing a socially-oriented trade policy. For example, their leaders decided to freeze prices for socially important goods. Such a step will lead to a good income at the expense of turnover, while ensuring compliance with the requirements of the Federal Antimonopoly Service.