Definition, Scope and Importance of Retailing

In my whole retailing career, I have stuck to one guiding principle: give your customers what they want…and customers want everything: a wide assortment of good quality merchandise, lowest possible prices, guaranteed satisfaction with what they buy, friendly knowledgeable service, convenient hours, free parking, and a pleasant shopping experience.

You love it when you visit a store that somehow exceeds your expectations and you hate it when a store inconveniences you, or gives you hard time, or just pretends you are invisible…

− Sam Walton ( Founder, Walmart )

Retailing includes all activities involved in selling goods or services to the final consumers for personal, non-business use.

− Phillip Kotler

Any organization that sells the products for consumption to the customers for their personal, family, or household use is in the occupation of retailing.

1

Functions of a Retailer

Retailer provides the goods that customer needs, in a desired form, at a required time and place.

  • A retailer does not sell raw material. He sells finished goods or services in the formthat customer wants.
  • A retailer buys a wide range of products from different wholesalers and offers the best products under one roof. Thus, the retailer performs the function of both buyingand selling.
  • A retailer keeps the products or services within easy reach of the customer by making them available at appropriate location.

Scope:

  1. Store Management.
  2. Category management.
  3. Customer Relationship Management.
  4. Vendor Management.
  5. Inventory Management.
  6. Supply Chain Management.

Importance:

  1. Helps in economic growth.
  2. Provides various opportunities.
  3. Provides employment opportunities.
  4. Formation of FDI.
  5. Improvement of Infrastructure and enhances the availability of retail space.
  6. Transformation of the retail sector in India.
  7. Improvement in standard of living.

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