Retailers are the last and vital members in the channel of distribution. The retailer serves the manufacturer by providing his goods and services to the consumers and creates a channel of information where customers’ feedback, their expectations and points of dissatisfaction (if any) are shared with the manufacturer. From customer’s point of view, the retailer’s main function is to provide merchandise in the right quality, quantity, price, time, and at the right place.
This objective is achieved through following perspectives:
1. Identifying Consumer Demands:
The first task that a retailer has to perform is to identify the consumer needs and wants. The retailer does not provide raw materials, but offers finished goods and services in a ready-to-use form that the consumers want. For this, from time-to-time, retailer gathers information about consumers’ liking, disliking, tastes and preferences.
2. Management of Merchandise:
The second task that a retailer performs is the management of merchandise. The retailer performs the function of storing the merchandise and provides as and when required by the customer.
3. Convenience of timing:
The retailer creates time utility by keeping the store open and ready for sale according to consumers’ convenience. The new trend in retailing to longer trade hours reflects the socio-cultural changes where over one in ten people work outside normal hours resulting in changing trading hours and panacea for small retailers against the cheaper prices of the super stores and other retail chains. By being available at a location that has easy access and convenient to shop, retailer creates place utility. Finally, when selected and bought by customers, retailers create ownership utility.
In short, retailers are not only the final link between the consumers and the manufacturers but a vital part of modern business world. In the absence of retailing, one can easily imaging how difficult and costly for a consumer to approach a manufacturer for various things every time he wants. Retailers do not sell things in small quantities but make their shopping convenient and less risky.
Retailers have floor staff to answer their queries regarding how to use effectively and safely, guide them what to buy according to individual preferences and budget and give demonstration or display products so that the consumers should have a feel of the merchandise before buying. The successful retailer focuses its activities on meeting these objectives through effective marketing.
Retail Sales Goals:
Retail Sales measures the gross receipts of a retail store by selling durable and nondurable goods. The main components of retail sales are grocery, food & clothing and shoe retailing. In India, consumer spending roughly accounts for over 60% of GDP and is therefore, a vital element in the country’s economic growth. Any change in retail sales pattern is important and is seen as the timeliest indicator of wide consumption patterns. Retail sales may have short term and long term goals in nature. Short term retail sales goals are supposed to support and merge into long term goals.
The goals of retail sales irrespective of a country’s profile are:
(i) To serve a link between the manufacturer and end consumers
(ii) To improve communication with retail customers
(iii) To improve sales target
(iv) To provide efficient customer service knowing the power of mouth advertisement
(v) To build image among general public
(vi) To improve social responsibility
(vii) To serve different markets
(viii) To get quick feedback about the merchandise sold and consumer services offered
(ix) To convert visitors to buyers
(x) Optimum utilization of fixed cost related expenses.
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