INTRODUCTION TO RETAILING

LEARNING OUTCOME

After studying this topic students will be able to:

• Define the term Retailing

• Explain the characteristics, importance, and scope of Retailing.

PO 1- Demonstrate an understanding of management concepts, principles, and theories and apply

them in the context of organizational work practices.
TABLE OF CONTENTS

01 CONCEPT OF RETAILING 02 CHARACTERISTICS OF

RETAILING

03 IMPORTANCE OF RETAILING
04 SCOPE OF RETAILING
 MEANING
• According to Kotler: ´Retailing includes all the activities involved in selling goods or services to the final
consumers for personal, nonbusiness uses.

• A process of promoting greater sales and customer satisfaction by gaining a better understanding of the
consumers of goods and services produced by a company.

• The most common form of doing business.

• It consists of selling merchandise from a permanent location (a retail store) in small quantities directly to the
consumers.

• These consumers may be individual buyers or corporate.

• Retailer purchases goods or merchandise in bulk from manufacturers directly and then sells them in small
quantities.

• Shops may be located in residential areas, colony streets, community centers or in modern shopping arcades/
malls.
 CHARACTERISTICS
1. Direct interaction with customers/end customers.

2. Sale volume large in quantities but less in monetary value

3. Customer service plays a vital role

4. Sales promotions are offered at this point only

5. Retail outlets are more than any other form of business

6. Location and layout are critical factors in the retail business.

7. It offers employment opportunities to all age

 IMPORTANCE
Convenient Place and
Provide assortments
Location

Contribution to the
Breaking Bulk Orders
economy

Holding Inventory Providing Services

 SCOPE
1. Retailer’s Perspective:

Retailing can include anything that the retailer wishes to sell.

However, in certain cases, permission in form of license is required to be obtained from the
government. For example, a license is required to operate a chemist’s shop. Hence, the retailer
must possess the required qualifications and hence may apply for the license.
 SCOPE
2. Employee’s Perspective:

• Purchase Department

• Finance Department

• Marketing and Sales

• Stores

• Human Resource

• Tech in retailing

• Supply Chain Management

 LETS SUMMARIZE
• Retailing includes all the activities involved in selling goods or services to the final consumers for
personal, nonbusiness uses.
• It is a process of promoting greater sales and customer satisfaction by gaining a better understanding of
the consumers of goods and services produced by a company
• Customer-centric
• Location and layout play a critical role
 References
• Pradhan S., Retailing Management- Text and Cases, McGraw Hill Education, India
• Bajaj C., Tuli and Srivastava N.V., Retail Management, Oxford University Press