: Commercial
transaction in which a buyer
intends to consume the good or service
through personal, family, or household
use. Retailing includes all the activities involved in selling goods or
services directly to final consumers for their personal, non-business use.
Retailing consists of business activities involved in selling goods &
services to consumers for their personal, family or household use.
Functions of Retailing:
The functions of retailing include :
a. Sorting :The items are arranged in
order by the retailers so that the customers are able to locate and pick up their
needed goods easily.
b. Storage: The retailer holds stocks of
goods and thereby meets the day-to-day needs of the consumer.
c. Channels of
communication: The retailer spreads by word-of-mouth communication,
valuable information to the customers about the product.
d. Transportation:
Nowadays, small grocery stores are undertaking the work of door deliver orders
in case of durable goods.
e. Breaking Bulk: Breaking bulk is
another function performed by retailing. The word retailing is derived from the
French word retailer, meaning ‘to cut a piece off’. To reduce transportation
costs, manufacturers and wholesalers typically ship large cartons of the
product, which are then tailored by the retailers into smaller quantities to
meet individual consumption needs.
f. Holding Stock: Retailers also
offer the service of holding stock for the manufacturers. Retailers maintain an
inventory that allows for instant availability of the product to the consumers.
It helps to keep prices stable and enables the manufacturer to regulate
production. Consumers can keep a small stock of products at home as they know
that this can be replenished by the retailer and can save on inventory carrying
costs.
g. Additional Services: Retailers ease the change in ownership of merchandise by providing services that make it convenient to buy and use products. Providing product guarantees, after-sales service and dealing with consumer complaints are some of the services that add value to the actual product at the retailers’ end. Retailers also offer credit and hire-purchase facilities to the customers to enable them to buy a product now and pay for it later.