The Retail industry includes establishments selling merchandise and offering services related to the sale of goods. Retailers sell goods to the end consumer. The retail sector consists of two main types: store and nonstore retailer. 1. Store retailers operate from fixed locations that sell merchandise to the general public. The purpose is to attract high number of walking in customers by using marketing. The merchandise sold by store retailers includes personal, electronic and household goods. Some types of stores also offer after-sale services. 2. Nonstory retailers also sell merchandise to the end consumer. However, they reach their customers by “broadcasting of "infomercials," the broadcasting and publishing of direct-response advertising, …show more content…
Very often suppliers have only one major customer (retailer) and to they have no choice but to extend credit to their buyers. This situation benefits big retail stores, which already can borrow money at a low rate. However, it puts supplier into financial scrutiny as often they have no financial resources to invest or even pay their expenses. Economy gets hurt because companies instead of investing into good projects and make a return on their investment, support their big buyers. (Murfin, …show more content…
Considering that retail industry is divided into five segments, each of this segments operates in a different stage of a life-cycle. First of all, the Big-Box & Department Store Retailer segment is in declining stage, because of the recent recession that adversely impacted many industries. Many retail companies were not able to adapt to a new environment, where customers are more savvy and innovation oriented. Therefore, many retailers close down their underperforming stores. However, many Big-box and Department stores in order to keep up with the market demand are expanding by adding grocery sections and shifting into Warehouse Clubs & Supercenters Retail segment which is still growing. This segment is operating in a mature cycle-life. It still growing, but slowly as it reached the point of market saturation. Next the Supermarkets and Grocery Stores segment is also in a mature stage of life-cycle. However, this particular segment is undergoing a slow growth rate, as a result of strong rivalry in the food retail sector. Many customers during the recession switched to more economic sellers in the warehouse club & supercenter retailer segment. However, currently household income is increasing and many consumers are looking for healthier choices the supermarket and grocery stores segment will experience a faster growth rate. Finally the E-tailer segment is
Key Issues The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon, which are gaining considerable market shares in many of the product segments included in the specialty retail sector. Currently, the majority of revenue is generated by store sales, but online sales from the stores’ websites are increasing. With the US dollar getting weaker, international sales from these US based websites are increasing too. This creates a significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...
E-commerce/ Online industry is a maturing industry but fails to attract purchase of daily consumer durables due to higher prices and longer fulfillment times. Grocery stores fail to offer a viable substitution due to high prices.
The term 'food retailers' is becoming ever more inappropriate as the operators of the largest stores increase their non-food offer. But food remains the core of the offer and the main reason that people visit the stores.
Retailing includes all activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Any organization selling to final consumers – whether a manufacturer, wholesaler or retailer- is doing retailing. It does not matter how the goods or services are sold (by person, mail, telephone, vending machine or internet) or where they are sold (in store, on the street, or in consumer's
The online retailer plans to strengthen its dominance in both the e-commerce and physical commercial space with its expansion into the grocery industry. Maintaining the original name of the grocery chain, to retain the chain’s
Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by post, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. A "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-users / consumers. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing
Retailing in India came with evolutionary patterns from Kirana store to Super market. This sector was un-organized in the initial stage, and after that it carried forward by the textiles industries through the dealer model. Now it is growing as supermarket and hypermarket. The main drivers of the retail evolution in India are buying behavior of the customer, increase in disposable income of middle class, infrastructure development and changing customer choice. The target segments of retailers are the younger middle class earners which belong to more than 20% of total population.
Retailing is a set of business activities that adds value to the product & service sold to the consumer for their personal or family use.
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
The basic function of retail is to provide the right goods at right place to right consumers at right time. The marketing tools that a retail organisation uses to pursue its marketing objectives are termed as marketing mix.
Observation – In this competitive world, retailers needs to ensure that quality services are delivered to retain the customers and improve the services as per the customer convenience, accordingly strategy must be developed. To attract more customer retail sector must be well organized as there is personal interaction and physical aspects involved that affects customer perception and if customer are happy they are satisfied with services. To sustain in this global economy, retailers have to develop new strategies. Retailers must know to persuade
The Information revolution is changing our daily lives. With the rapid development of computers and the internet, online commerce has become quite common and plays an important role in the modern world. Online business has been booming in recent years. US online retail sales rose an average of 11% in the first three months of 2009 (“US Online Sales Up,” 2009). The growth of online sales may be due to the growing number of consumers who shop online.
The growing disposable income in the country is resulting in increasing consumer spending habits. A large young working population with age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. (Thambala, 2013)
The nature of the business of retailing puts retailers at a assumed risk of incurring costs because products are bought with the assumption that consumers will purchase. Additionally there are external factors that may also pose risks such as natural disasters, theft, spoilage and fire. In other circumstances retailers also extends financial credit to customers in the form of credit sales which facilitates the smooth transition from retailers to the marketplace. Retailers are in constant contact with customers which gives them the opportunity to research and study buyer’s behaviour. This involves collecting information about changes in customer preferences, perception and shifts in the demand curve. Through advertising within their stores retailers are able to exhibit and introduce existing and new products to the marketplace. Ultimately retailers are in the business of selling products to customers to achieve their goals of generating