What is Retail Management?

Retail management refers to all the procedures that assist customers in obtaining desired items from retail companies. Retail management includes all the actions needed to attract customers into the business and satisfy their purchasing demands.

Retail management focuses on improving customers' experience using various approaches to provide all potential impulses for a purchase. Color, style, range, environment condition, shelf height and width, goods arrangement, and package options are several other methods retail managers use to create a pleasant environment and increase sales. Accessibility and availability are also significant factors for retail management.

Types of Retailing

There are various types of retailing. They are as follows:

Store Retailing

Department stores, independent retailers, grocers, grocery stores, catalog shops, pharmacies, supermarket chains, outlet stores, extreme value stores, and other types of retail stores fall under this category.

Online Retailing

Online retailing is the process of selling goods and services online. This can be done through a variety of means, including online marketplaces, e-commerce websites, and social media platforms. Online retailing offers many benefits to both businesses and consumers, including convenience, lower prices, and a wider selection of products and services.

Multinational Retailing

Retailing through corporate channels such as chain stores, franchises, and the joint venture is known as corporate retailing. Corporate retailing mainly focuses on the owner or partner brands’ products.

Service Retailing

Retailers do not just sell physical goods; they also provide services. The process of a retailer providing services is known as service retailing. Restaurants, lodges, pubs, and other places that provide services are examples of service retailing.

What are the functions of a Retailer?

The functions of the retailer have been described below:

• Channel of Communication: A retailer acts as a communication channel because retail involves direct interaction with end consumers. It is a vital communication route for businesses and producers.
• Breaking Bulk: Retailers buy things in large numbers from manufacturers and wholesalers but sell to customers in moderation.
• Marketing: The last route to make genuine decisions is retail outlets. As a result, they serve as key advertising channels for businesses. Manufacturers use posters, commercials, incentives, and other methods to enhance sales at retail outlets.

Wholesaling and Retailing Marketing Strategies

Before an individual starts a wholesale marketing strategy, they should concentrate on a few basic techniques that will result in providing a steady and productive supply.

With that in mind, here are some wholesale marketing options to think about. Purchasing huge quantities of items from a manufacturer and distributing them to merchants, who then resell them to end-users, is known as wholesaling.

The principle of economies of scale drives the entire process. A wholesaler begins by collecting and storing vast quantities of goods. They then monetize quantities of those goods to local merchants in a community, city, or open market. Since they are not retailers and only offer decent items, they usually cannot provide end service and product support.

Some strategies related to retailing are as follows:

• Social Media: One may utilize social media platforms in various ways of reaching out to the desired consumer base. These operations include both paid and unpaid activities. For example, sellers can regularly upload content to their social media accounts, such as Facebook and LinkedIn.
• Local Advertising: Product marketing should be personalized. Advertising in your local neighborhood is an excellent approach to target your key demographic audience. An example is a business-to-business magazine, newspaper, business-to-customer.
• Brick and Mortar Marketing: A local street business that offers products and services to customers face-to-face in a shop is referred to as "brick-and-mortar."

Advantages and Disadvantages of Retail Management

There are both advantages and disadvantages to working in retail management. Some of the advantages include having a stable income, working with people, and having flexible hours. Some disadvantages include long hours, dealing with difficult customers, and dealing with employee issues.

Some people enjoy working in retail management because they have a stable income. They know how much they will be making each week, and they can plan their finances accordingly. Others enjoy working with people to help customers find what their issues are and what they need.

However, there are some disadvantages to working in retail management as well. One of the biggest disadvantages is the long hours. Retail management can be a very demanding job and require long working hours. Another disadvantage is dealing with difficult customers. Some customers can be very demanding and challenging to deal with. Finally, another disadvantage is dealing with employee issues. Employees can be difficult to manage, and it can be challenging to keep everyone happy.

Overall, there are both advantages and disadvantages to working in retail management. It is important to weigh the pros and cons before deciding if this is the right career path for you.

Common Mistakes

Many students are unclear about what retail management entails. They get confused in retail managed management and logistics management. Retail management ensures that products are effectively distributed and delivered to consumers through various channels such as stores, malls and chain stores. On the other hand, logistics management emphasizes proper procurement, storage and flow of goods from the production to final consumption. Both concepts seem similar but focus on different aspects of the flow of goods.

Context and Applications

Retail management is a fundamental topic in management and is important for the following courses of study:

• Bachelor of Science in Retail Management
• Master of Business Administration (Marketing Research)
• Master of Business Administration (Merchandising Management)
• Master of Business Administration (Supply Chain Management)

Related Concepts

• Market Segmentation
• Store Operation
• Retail Marketing
• Customer Service Management

 Practice Problems

1. In which quantity does the retailer sell products?

1. Less quantity
2. High quantity
3. Mass quantity
4. Full quantity

 Answer: a

Explanation: A retailer is someone who sells products in a modest amount.

2. What is the primary goal of retail management?

1. Growth in sales
2. Customer services
3. Profitability
4. All of above

Answer: d

Explanation: Retail management's main objectives are to increase sales, increase customer satisfaction, and grow business revenues.

3. What type of store does a retailer has?

1. Warehouse
2. Grocery stores
3. Mortar and brick store
4. Factory store

Answer: c

Explanation: Retailers sell goods and services in a brick and mortar store.

4. Which type of store contains goods in bulk?

1. Departmental store
2. Fixed price shop
3. Specialty shop
4. Chain shop

Answer: a

Explanation: A department store is a major retail enterprise that sells a wide range of products grouped into several sections.

5. Who are the intermediates who do not take full control or custody of items but rather bring buyers and sellers together again to complete sales and purchases transactions?

1. Retailers
2. Investors
3. Agents
4. Wholesalers

Answer: c

Explanation: Agents are the people who act as an intermediary between buyers and sellers.