What is retail: the meaning, features and state of the art

Surely you have repeatedly heard the word "retail" in the speech. Initially this term came from marketing, but today it is actively used in various areas of human activity. Especially often it is used in the trade and banking spheres. Do you know what retail is? If not, then this article will help you understand this concept.

Retail: value

Before you understand the modern use of this term, you should find out its origin. How did the word "retail" come about and what does it mean? It came to our speech from the English language and is literally translated as "retelling". It would seem that nothing to do with trade. But this is not so.

The market is the most important part of the economy of any country, and its inalienable components are the sale and purchase of goods. At the same time, they can be realized in two ways: wholesale and retail. In the first case, as a rule, we are talking about an intermediate stage of the movement of goods from the producer to consumers, in which the intermediary intervenes. In the second, the sale is made directly to the final buyer.

"Retail" refers to retail trade, which in terms of volume is comparable to wholesale. That is, sellers buy from manufacturers goods in bulk and resell it to consumers in the same volume. History repeats itself (how many bought, sold so much), why the process was called "retelling" or retail.

Features of retail

We have already found out what retail is. This is the sale of the goods to the final buyer. It is carried out with the mandatory use of such elements as a cash register and a check, and compliance with the rules of the "Consumer Protection Law". In this case, you can identify a number of features that are unique to retail. These include:

• Accessibility - anyone can get a service or buy a product;
• Variety of assortment - presence of set of positions and kinds of production;
• Establishment of a retail price.

The last point is to focus on, as it is the economic basis of retail. The retail price is always higher than the wholesale price for the trade mark -the difference between the purchase and sale price. This amount is the main income of the retailer, though not the only one. Depending on the specific area, the margin can be as high as 25-30% (trade in products), and all 200%, and even more (trade in clothing, luxury goods). Therefore, even in the conditions of sales, sellers, as a rule, do not work for themselves at the expense, but only a few reduce the size of the trade mark-up. Most often, retail is a very profitable activity that allows you to earn nothing without producing anything.

Retail: formats of trade

Speaking about what retail is, we should say about the ways of its implementation. Sale can be carried out in different ways and in different conditions:

• personally;
• by phone;
• through the Internet;
• on the street;
• in the shop;
• from home.

However, as a rule, retail trade is conducted in a shop. It can have the following formats: a supermarket, a supermarket, a discounter, an Internet shop, a shop at home or on the couch. Especially popular among retailers is street retail. What it is? These are retail premises, which are located on the ground floors of buildings. They have all the attributes of the store: shop windows, cash register and their own separate entrance. This format of trade is convenient for buyers living nearby, and is beneficial to sellers.

It is also worth mentioning what a retail park is, because in recent years it is gaining in popularity. This is an economic format shopping center, consisting of one or two floors and located usually around the parking lot. For the construction of such complexes use cheap structures and technologies, which allows you to set lower rental rates. This makes retail parks interesting and popular with retailers, as well as with buyers who can purchase goods at more favorable prices.

Retail today

On a global scale, retail volume reaches today $ 10 trillion. The share of Russia in the world market makes about two percent, thus its annual growth is observed. In connection with the increase in the welfare of citizens in the last few years, their purchasing power has grown (by almost 10% per year). To date, our country in the retail market is in the eighth place, which is quite good.

The largest retail trade networks in our country are X5 Retail, Magnit and Auchan. And the world leader can be called the American retail company Wal-Mart. Today its turnover is more than 400 billion dollars.

Conclusion

In the article we examined what retail is, what are its obligatory attributes and features. You learned what retail formats exist and what's new in this area today. In addition, we touched on the current state of the world retail and learned the place of our country in its aggregate volume. We hope that the information was interesting and useful for you.