Table of Contents
P1 Describe the structure and organization of the retail sector
P2 Explain the process of distributing goods through different channels from the manufacturer to the customer
P3 Explain how focusing on the customer, by providing good customer service, is essential to retailing
P4 Identify the competitive factors in the retail environment a selected organization faces.
In today’s highly competitive and global marketplace, the pressure on organizations to find new ways to create and deliver value to the customers grows even stronger. This paper describes the structure of the retail industry, how to respond to the importance of the sales process, the distribution process, the sale and service changes and the changes in the sector. The first part describes the framework, organization, format and locations of retail companies. This section describes the different methods and places in which retail is operated and changes performed in the industrial structure. The second portion describes the retail dealer.
In this section, the manufacturer discusses the distribution process of the product through different channels of the customer. The third portion discusses customer services and retail sales. In this portion, I will visit a shop and create a report that focuses on customers, provides suitable consumer services, necessary for retail sales. The fourth division discusses the competitive issues of the retail business. This portion mainly explains the process of a business company faces several competition from the others companies in the global retail market. There has been a growing recognition that it is through this kind of management that it can be achieved a twin goal of cost reduction and service improvement.
P1 Describe the structure and organization of the retail sector
Definition of retailing
Retail involves the sale of goods from a single point (malls, markets, department stores, etc) directly to the consumer in small quantities for his end-use. The single point of purchase could be a brick-and-mortar retail store, an Internet shopping website, a catalog, or even a mobile phone. The retail transaction is at the end of the chain. In addition, retailers may provide many extra services, from personal shopping to gift wrapping to delivery, that increases the value of products and services to consumers. Retailing is nothing but the transaction of goods between the seller and the end-user as a single unit (piece) or in small quantities to satisfy the needs of the individual and for his direct consumption (MSG, 2017).
Classification of types of store
Department Stores: The departmental stores can be set up as a large retail organization with a wide variety of different types of goods and services organized in separate divisions.
Departmental stores can be defines as a large retail establishment with an extensive assortment in variety and range of products, organized into separate departments. All departments are housed under the same roof to facilitate buying. According to Collins (2016), a department store is a big store, which is divided into sections that sell products like furnishing, electronics,
Supermarkets: A retail store which generally sells food products and household items, properly placed and arranged in specific departments is called a supermarket. A supermarket is an advanced form of a small grocery store and caters to the household needs of the consumer. The various food products (meat, vegetables, dairy products, juices, etc) are all properly displayed at their respective departments to catch the attention of the customers and for them to pick any merchandise depending on their choice and need (MSG, 2017).
Specialist Outlets: As the name suggests, a Speciality store would specialize in a particular product and would not sell anything else apart from the specific range. Specialty stores sell only selective items of one particular brand to the consumers and primarily focus on high customer satisfaction (MSG, 2017).
Warehouse retailers: A retail format that sells limited stock in bulk at a discounted rate is called a warehouse store. Warehouse stores do not bother much about the interiors of the store and the products are not properly displayed (MSG, 2017).
Malls: Many retail stores operating in one place from a mall. A mall would consist of several retail outlets each selling their own merchandise but at a common platform (MSG, 2017).
Nowadays the customers have the option of shopping while sitting at their homes. They can place their order through the internet, pay with the help of debit or credit cards and the products are delivered to their homes only. However, there are chances that the products ordered might not reach in the same condition as they were ordered. This kind of shopping is convenient for those who have a hectic schedule and are reluctant to go to retail outlets. In this kind of shopping; the transportation charges are borne by the consumer itself (MSG, 2017).
Mom and Pop Store: Mom and Pop stores are small stores run by individuals in the nearby locality to cater to the daily needs of the consumers staying in the vicinity. They offer selected items and are not at all organized. The size of the store would not be very big and depends on the land available to the owner. They wouldn’t offer high-end products (MSG, 2017).
Discount Retailer: Discount stores also offer a huge range of products to the end-users but at a discounted rate. The discount stores generally offer a limited range and the quality in certain cases might be a little inferior as compared to the department stores (MSG, 2017).
Emerging store types
In defense contracting, an emerging small business is any small business concern whose size is no greater than 50 percent of the numerical size standard applicable to the Standard Industrial Classification ( SIC ) code assigned to a contracting opportunity In such markets information is freely and widely available, and is almost instantly access the entire are facing increased competition and high expectations around freshness, convenience and transparency.
According to Farhan (2017), these members sell only retail stores and retailers to sell small amounts in a hybrid that they sell consumers directly, but they sell large amounts, which can often sell their prices that other retailers that sell impeccably high-cost shopping online and physical stores……………………………..