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RETAILING OVERVIEW
 LEARNING OUTCOMES

At the end of this chapter you should be able to:

Define the concept of retailing
Explain the importance of retailing
Describe retailing mix
Explain green retailing
Define e-tailing
Explain the concept of halalan toyyiban
Elaborate on relationship retailing
Discuss entrepreneurship opportunities

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 INTRODUCTION

 Retailing refers to any business activity which adds

value to the products and services sold to end
consumers.
 This involves a set of final activities and steps needed to
ensure that products or services are subsequently
transacted and secured into consumers’ hands.
 It can be performed by any retailer or retail firm that
sells a product and/or provides a service to the final
consumers for their own household consumption.

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 IMPORTANCE OF RETAILING

 Providing wide assortments of products

 Bulk breaking
 Stocking inventory
 Providing many other value-added services

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 RETAIL MIX

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 GREEN RETAILING

 Green retailing is an approach to managing a retail

business that takes advantage of environmentally
friendly processes.
 Green retailing provides retailers with business
sustainability, a positive brand image and a way to
show customers their social responsibilities by
reducing the environmental impact while
simultaneously delivering significant financial
benefits.

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 GREEN RETAILING (CONT.)

 There are two benefits for retailers to consider eco-

friendly practices:
– Consumer awareness on eco-friendly goods and
practices has increased in the last decade. They are
willing to spend more on ‘green’ and organic products,
and this serves as an opportunity for retailers to
expand their offerings.
– Retailers have realized that developing an eco-
friendly brand would provide sustainable competitive
advantage and differentiate their products from their
competitors in a crowded marketplace.
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 E-TAILING

 Electronic retailing (or e-tailing) simply defines any

business-to-consumer (B2C) transaction taking
place over the Internet.
 It is categorized as non-store retailing. Simply put,
e-tailing is the sale of goods online.

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 THE CONCEPT OF HALAL

 Halal is a term designating any object or action which is

permissible to use or engage in, according to Islamic
law.
 Halal is an Arabic word meaning lawful, permissible,
allowed or legal and the term not only covers food and
drink, but also all matters pertaining to daily life.
 Halalan toyyiban means allowed and permissible for
consumption in relation to Shariah law as long as they
are safe and not harmful. Toyyiban denotes food that is
safe, clean, nutritious and of good quality.
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 RELATIONSHIP RETAILING

 In retailing, retailers do not only serve customers with

their physical goods but also with services that are
tangible in nature.
 This entails looking at the retail value-driven relationships
and that retailers could provide to customers in ensuring
positive shopping experience, satisfaction and
subsequently promoting customer loyalty.
 In applying relationship retailing with customers, factors
such as customer base, customer service, customer
satisfaction, loyalty programs and defection rates must be
considered.

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 ENTREPRENEURSHIP
OPPORTUNITIES
 Management Opportunities
– Retailers employ people with expertise and interests
in finance, accounting, human resource management,
supply chain management and computer systems, as
well as marketing. Retail managers are often given
considerable responsibility early in their careers.
 Entrepreneurial Opportunities
– Retailing also provides opportunities for people who
wish to start their own business. An entrepreneur is a
person who takes the initiative to pursue a new
business venture through innovative means and is
prepared to accept a certain degree of financial risk.
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 SUMMARY

 Retailing is defined as a set of business activities that

add value to the products and services sold to
consumers for their personal or family use.
 These value-added activities include providing
assortments, breaking bulk, holding inventory, and
providing services.
 The retail management decision process involves
developing a strategy for creating a competitive
advantage in the marketplace and then developing a
retail mix to implement that strategy.

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