Functions of Retailer

Retailing as a sector includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the small orders of a large number of individuals, rather than large orders of a small number of wholesale, corporate or government clientele. Shops may be on residential streets, streets with few or no houses, or in a shopping mall.

1. Functions of Retailer - M.SWATHI

2. 2 Retail involves the process of selling consumer goods or services to customers through multiple Channels of distribution   to earn a profit.  Retail comes from the Old French word tailler, which means "to cut off, clip, Breaking bulk, divide" .  Retailing as a sector includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the small orders of a large number of individuals, rather than large orders of a small number of wholesale, corporate or government clientele. Shops may be on residential streets, streets with few or no houses, or in a shopping mall.

3. 3 A retailer purchase the goods or products in large quantities from the manufactures directly or through the wholesale and sells smaller quantities to the consumers for profit.

4. 4 FUNCTIONS OF RETAILER Buying and Assembling Warehousing and storing Selling Credit facility Risk bearing Grading and packing Collection and supply market information Helps in introducing new products Window display and Advertisement

5. 5 BUYING AND ASSEMBLING: A retailer deals in different variety of goods which he purchases from different wholesalers for selling to the consumers. He tries to locate best and economical source of the supply of goods. Assembling starts after the goods have already been purchased. It is a function separate from buying.  Buying involves transfer of ownership of the goods, where as assembling involve creation and maintenance of the stock of goods purchased from different sources.

6. 6 WAREHOUSING OR STORING: Warehouse retailing is a concept of selling large quantities of goods at discounts deeper than those provided in conventional supermarkets or wholesalers. They offer very low prices and little or no customer service at all. The value provided to customers ( that include ultimate consumers and small retail outlets) is in the form of discounts and it is overall a rather no-frills experience. The industry rose in significance with dwindling disposable income but has matured over the years owing to unavailability of space, growing real estate prices etc.

7. 7 After assembly of goods from different suppliers, the retailers preserve them in stores and supply these goods to the consumers as and when required by them. The goods are kept as reserve stocks in order to ensure uninterrupted supply to the consumers.

8. 8 SELLING : Retail involves the process of  selling  consumer goods or services to customers through multiple channels of distribution to earn a profit. Demand is identified and then satisfied through a supply chain . The end objective of the retailer is to sell the goods to consumers. He undertakes various methods to sell goods to the ultimate consumers.

9. 9 Retail Selling Process :

10. 10 CREDIT FACILITIES: credit facilities provides loan services to retail consumers for goods and services. Retail credit facilities lend funds to consumers wishing to purchase high ticket items but are short on capital. Thus, retail credit facilities may enable a greater number of consumers access to a retailer's goods . Retailer caters to the needs of the customers even by supplying them goods on credit. He bears the risk of bad debts on account of non-payment of amount by the customers .

11. 11 RISK BEARING: A retailer has to bear different type of risks in relation to goods. While in stores, goods are exposed to various risks like deterioration in quality, spoilage and perishability etc. The products are confronted to natural risks such as fire, flood, earthquake and other natural calamities.Other type of risks like change in customer’s tastes also adversely affects the sales.

12. 12 GRADING AND PACKING: The retailer grades the goods which are left ungraded by the manufacturers and the wholesalers. He packs the goods in small packages and containers for the convenience of the customers . The Retail market caters to the sale of goods to the end consumers rather than producers or intermediaries (wholesale is the other one).  Therefore Retail Packaging entails every aspect that is required for the product to reach the consumer from the producer including protection , branding & regulation .

13. 13 COLLECTION &SUPPLY OF MARKET INFORMATION: The retailers are in direct touch with the consumers. They gather invaluable information with regard to likes dislikes tastes and demands of the consumers and pass on this information to the wholesalers and the producers which are very helpful to them .

14. 14 HELPS IN INTRODUCING NEW PRODUCTS: Without the services of retailers, new products cannot be introduced properly in the market. This is so because a retailer has a direct interaction with the consumer. They act as intermediaries between end-users and suppliers such as wholesalers or manufacturers. Retailers are in the position to effectively communicate the response and changing preference of the customers.

15. 15 WINDOW DISPLAY AND ADVERTISING: One of the most creative and fun aspects of running a pop-up shop is managing the visual merchandising elements of the retail environment. That means everything from the window display a prospective customer first sees that draws them to your store, to the signage that directs them around, and the merchandising displays that catch their eye and ultimately influence them to purchase something . The retailer displays the products in show windows in order to attract the customers.This leads t o immense publicity for the product .

16. 16 Key Reasons for Retail Change in India: There are some fundamental factors that has brought the major change in retailing industry today : Changing Income Profiles: Steady economic growth fuelled the increase in disposable income in India . Changes in Consumption patterns:   Occupational changes and expansion of media have caused a significant change in the way the consumer lives and spends his money . The changes in income brought about changes in the aspirations and the spending patterns of the consumers . Emerging Rural Market : The Rural market is beginning to emerge as an important consumption area, it has increased the demand .

17. 17 The emergence of a young Earning India : Nearly 70% of the Indian population is below the age of 34. taking advantages of employment opportunity in the booming service sector these young Indians are redefining service and consumption patterns. Introduction of the private label :   Retailers now decide on products and brands they want to stock. Some have even developed their own in store brands/products that cater to the needs of target customers. Technology : Increasing use of technology, use of bar code provides wealth of information to retailer. Consumer profile, products purchased, price ranges, promotional offers, customer cards, internet etc.

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