Retailing is a process of selling the products to the industrial customer for their own personal

consumption.
Characteristics-
1. There is an end user interaction in the retailing process.
2. It is that point in the distribution channel where promotional activities get a platform.
3. The sales turnover in case of retailers take place due to smaller unit size or smaller
units. (Smaller units mean less units and customers also purchase less as compared to
wholesaler.)
4. Location is a critical factor in retailing. (Location of outlet)
5. There are many retailing outlets in comparison to other elements of a value chain.
6. In some cases the retail services are as important as the core product of the organisation.

Functions of retailing-
1. Arranging assortment – It is a selection of retailing merchandise. Not only type but
depth. This is done in order to sell maximum stock.
2. Breaking bulk – Repackaging of product by retailer in smaller quantity as per the
customer’s requirement and the stocking requirement.
3. Holding the inventory – No out of stock situation arises and to have minimum level of
quantity.
4. Providing services – Ex. Of watch, sales services by dealer and dealer had point of
contact with the user. Eg. Retailer gets big pack from manufacturer and makes smaller
pack.
5. Promotion
6. Market research – Collect info from customer about performance of product,
competitor.
7. Transport – Generally done by wholesalers but may also be done by retailer in case of
retailer outlet.

Retail concept –
Classification of retailing –
1. Store based retailing
a. Independent retailer
b. Shoppers stop
c. Franchise
d. Sakari bhandar
2. Non store based retailing
a. Automatic vending machine

Retail location strategy –

 1. Selection of the city – The population, potential purchasing power of the people,
number of competitors, size of competitors.
2. Area within the city – Attraction of the people, internal retailing activities. Acailabiity
of access routes.
3. Site within the area – parking space, retail source, whether vehicles moving.

Retail merchandise mix –

1. Variety
2. Assortment
3. Support