Chapter 12, Problem 1QA

Summary Introduction

To explain: The meaning of retailing and the role of retailing in today’s world.

Introduction: Retailing is a part of distribution process which makes the goods available to the final customer.

Explanation of Solution

Retailing refers to a process wherein a person purchases goods from the wholesaler and directly sells the goods to the consumers. Such person is called retailer and the entire process of purchasing from a manufacturer or a wholesaler and then selling to the end consumer is called retailing. Retailing is the final link between wholesaler and the consumer in a distribution channel.

Retailing holds a significant importance in today’s world because of the following reasons-

• Purchasing from retailers proves to be more convenient for the customers since the wholesalers always sell in bulk quantity. Retailers break the bulk quantities and sell even in the smallest quantities as and when demanded by the consumers.
• Retailers offer great choice to the consumers and hence, consumers can have a variety of products at one stop.
• Retailers provide additional services like credit facilities, products at discounted rates, after sales service, testing before purchasing and many more options.
• Retail shops are available everywhere and hence, the consumers can get the products at convenient locations without any hassle.
• The retailing business is expanding widely. The retailers have their presence in the digital world as well and are contributing a significant percentage into the country’s GDP (gross domestic product) and are generating numerous employment opportunities.

Retailing is not only beneficial for the consumers but is quite beneficial for the manufacturers too. The manufacturers can get a feedback of the consumers via retailer as retailer is the only person who stays in direct contact with the consumers. So, it would not be an exaggeration if one says that retailers, nowadays, are dominating the supply chain as retailers perform the most important function of connecting the manufacturers with the final consumers,