Overview of the retail industry
Overview of the Retail Industry
- The retail industry consists of businesses that sell goods and services to consumers. It is an essential sector of the economy, directly influencing consumers' everyday lives.
- A key characteristic of the retail industry is diversity, with retail businesses selling a vast range of products and services. These include clothing, groceries, electronics, furniture, and services such as repairs and personal care.
- Retailers are categorised into different types based on various factors such as size, ownership, the type of merchandise sold, and the level of service offered.
- Small, independently-owned businesses like family grocers and boutiques are termed as independent retailers.
- Large retail chains with multiple outlets across various locations are known as multiple retailers or retail chains.
- Online businesses that sell products or services over the internet are e-retailers or online retailers.
- Discount retailers and warehouses sell goods at lower prices often by maintaining lower overheads and, in the case of warehouses, selling in bulk.
- Retailers use multiple channels to sell products and services. They can be physical stores, online websites, mail-order catalogues, and even mobile apps.
- The pricing strategy used by retailers can vary. Some utilise an 'Everyday Low Prices' (EDLP) strategy, where products are priced lower than competitors', while others may use a 'High-Low' pricing strategy, changing prices based on demand and other factors.
- Good customer service is crucial in retail. It involves providing assistance and advice to customers, dealing efficiently with complaints, and ensuring a smooth buying process.
- Retailers also play an important role in merchandising, which refers to the way products are displayed and organised in-store to increase sales.
- The retail industry is constantly evolving, driven by technological advancements, changes in consumer behaviour, and various other external factors. Retailers need to adapt and innovate to stay competitive and profitable.
- Sustainability in retail is becoming increasingly important. Retailers are expected to minimise their environmental impact by reducing waste, using eco-friendly materials, and ensuring ethical sourcing and production methods.