What is retail

For many, the term “retail” is familiar, but not everyone understands its meaning. In literal translation, “retailer” means a retail seller. This means that retail is a concept of retail sale of goods in small lots or in the singular directly to the end consumer.

In essence, this is any retail outlet: super- and megamarkets, grocery stores, etc. Retailers purchase goods wholesale from manufacturers or their representatives for further retail sale. Consumers purchase products only for personal use, and not for the purpose of further resale. This is a commercial B2C business scheme. Let’s take a closer look at retail: what it is and what its main principles are.

Retail – what is it in simple words

There are several types of manufacturers on the market: large industrial enterprises (factories, plants, etc.), farmers, individual entrepreneurs. They supply their products directly to retail outlets or through distributors. As a rule, there is no direct contact with the end consumer. Interaction with buyers is carried out through retailers. Products are sold through regular stores and virtual trading platforms, the so-called marketplaces. The sale involves an increase in the cost of purchase. The size of the markup depends on a number of parameters: transportation services, advertising costs, storage services, etc.

Main types of retail

 

Depending on the sales format, there are two categories of retail: traditional, i.e. with direct contact with the buyer, and online retail. In the latter case, sellers sell various types of goods through virtual platforms. This includes marketplaces where you can find all kinds of products from private entrepreneurs and large retail chains. In addition, other types are determined, which depend on the size of the retail space, the method of service and the technology of placing goods. One retailer can belong to different types of retail trade.

Based on the types of goods sold, retail can be:

• Grocery. This includes everything related to the sale of food products: hypermarkets, grocery stores and tents, markets. This is the most profitable business in the retail sector, which demonstrates stability and constant growth. The most popular retailers are Dixie, Magnit, Pyaterochka, Vkusvill.
• Non-food. These are all types of retail outlets selling non-food products: toys, stationery, household goods, etc. The range of products offered may vary depending on the season. A striking example is hunting and fishing stores. Among the representatives of non-food retail there are both small stores and large chains – “DNS”, “Hoff”, “Podruzhka” and others.

Street retail is a separate category. This includes retail premises with a separate entrance on the ground floors of residential buildings. Due to the increasing demand for stores in the “near home” format, it is worth considering street retail separately: what it is and how it differs from other types of trade.

Street Retail – What is it in simple words

Translated from English, “street retail” means “street trade”. But this includes premises located on the ground floors of buildings with an exit to the street and a shop window. Such stores have a small area, and can occupy up to 150 sq. m. Street retail sells high-demand goods, specific products, such as barbershop goods, or offers various types of services: beauty salon, cafe, etc.

Features and Benefits

Choosing street retail as your own business austria phone number library has many advantages, including:

• formation of a positive image of the company;
• emphasizing the respectability of the establishment;
• increased demand due to high traffic (depending on the specific area);
• stability of visitor traffic;
• quick payback.

The choice of the optimal location is decisive for this type of trade. The success of the business will depend on the prestige of the area, proximity to the metro, and transport accessibility. Boutiques and other retail outlets located in residential complexes are becoming popular. Some developers already think about the location of shopping galleries when developing a project.

For consumers, retail outlets and establishments offering various services in the street retail sector are convenient due to their proximity to their place of residence. This is especially true in megacities, where a lot of time is spent on the road to the desired location.

Street retail can be of different types. Retail outlets differ depending on the range of goods/services offered and the target audience, as well as functionality. The main categories of real estate for implementing a business are: elite and residential. In the first case, it is assumed to be located in the central part of the city.
This includes:

• designer boutiques;
• prestigious shops;
• luxury cafes;
• beauty salons.

The location in the business center or historical quarter assumes a high cost of the products sold. This is primarily due to real estate prices.

Street retail in residential areas is aimed at serving the local population. Prices for goods/services are low here due to the low cost of rented or purchased premises for permanent use. This is an excellent solution for a startup.

“Smart Retail” – What is it and what is it based on?

 

A completely new type of retail that involves case studies: successful examples in digital marketing retail trade without contact with the consumer. Stores in this area exclude the presence of cashiers, since product accounting and interaction with the end consumer occurs through the latest technologies.

Traditional types of retail are offline stores. Along with them, online platforms began to develop successfully after the development of the Internet. It was believed that marketplaces could completely displace standard retail outlets from the market. However, each of these types of retail trade occupied its niche, complementing each other. Currently, “smart retail”, based on the use of innovations in the field of trade, has begun to actively develop.

Benefits for consumers:

• increasing the speed of service;
• improving the quality of service;
• avoiding the purchase of expired goods;
• absence of conflict situations, which often arise due to the human factor (irritability, fatigue, etc.).

For owners of retail outlets, the introduction of technology into the retail sales process is also beneficial. The main advantages of such a business are: reduced personnel costs, optimization of sales floor occupancy, analysis of demand for goods, and increased consumer loyalty.

The basis for the successful development of “smart retail” is the spread of smartphones and radio communication protocols, solutions for IoT platforms, and methods for identifying visitors. For example, in China, all these technologies are implemented in the Alibaba chain of stores. In the US, there are also similar outlets: Amazon GO and Walmart. In addition to networkers, you can find specialized projects located on crowdfunding resources.

Technologies used

“Smart retail” involves the introduction of a customer identification system. Registration occurs via a smartphone in a specific application. Scanning a QR code when entering a store and taking a selfie at the turnstile is also allowed.

Movement in the sales area is tracked via Wi-Fi. RFID tags are installed on the goods. They make it possible to track the production date and expiration date of the products, the location of the goods on the display case and determine the fullness of the consumer basket.

Artificial intelligence can work in such a way that the customer’s basket can be significantly improved. For example, the system can record a list of necessary goods and send data on the products to the phone. Thus, when exiting the turnstile, the basket is scanned and the customer is offered a suitable payment option. Money is debited from the bank card linked to the application.

It is worth noting that the development of “smart retail” is possible only for retail premises with high consumer traffic. The location of such points should provide for the availability of a stable Internet.