The word ‘Retailer’ had been derived from the French word ‘Re-tailer’ which means ‘to-cut again’. Obviously then, retailing means to cut in small portions from large lumps of goods. A retailer is the last middleman in the chain of distribution of goods to consumers. He is a link between the wholesalers and the consumer. A retailer does not manufacture any product they sell, but they are the final link in the distribution chain and the one who connects and delivers the goods and services directly to the customers.
The American Marketing Association defines retailing as “the activities involved in selling directly to the ultimate consumer for personal and non-business use. It embraces direct-to-customer sales activities of the producer, whether through his own stores or by house-to-house canvassing or by mail-order business. The retailer is an intermediary in the marketing channels and is a specialist who maintains contact with the consumer and the producer and is an important connecting link in the mechanism of marketing.
Importance of Retailer
- Provide Assortments: Supermarkets or small Kirana shops sell different product items manufactured by different companies. These places enable and give choices to customers to pick from a vast assortment of goods, sizes, brands, and prices at one location.
- Breaking Bulk Orders: Manufacturers and wholesalers sell the products in bulk to the retailers. The retailers then sell it to the customers in smaller and more useful quantities.
- Holding Inventory: The significant action accomplished by the retailer is maintaining an inventory, so the items are available whenever the customers want. This action allows the customer to buy products in a small quantity as required.
- Providing Services: Retailers implement services that make customers’ shopping journey favorable. For example, retailers showcase all the products so that the customers can see and buy them. Retail store’s employee salesperson to assist the customers.