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 organisation faces.
My post is a junior journalist and my job is making an article on the regional business. This paper concentrates on the retailing industries of the UK. As the popularity of the retailing business is rising day by day, and there are many retailing companies who are serving people successfully, my paper focuses to understand their retailing business.
The first section of my paper explains the structure of the organizations of the retail sector. In the second sector, the process of distributing goods through different channels from the manufacturer to the customer is evaluated. The third section explains how focusing on the customer, by providing good customer service, is essential to retailing. Finally, through the fourth section, the competitive factors in the retail environment a selected organisation faces are identified.
P1 Describe the structure and organization of the retail sector
Definition of retailing
According to the definition given by Knowthis (2018), Retailing is a distribution channel function where one organization buys products from supplying firms or manufactures the product themselves and then sells these directly to consumers. A retailer is a reseller (i.e., obtains the product from one party in order to sell to another) from which a consumer purchases products. In the US alone there are over 1,100,000 retailers according to the 2002 US Census of Retail Trade. Consumers can buy traditionally and also via the internet through using mobile, computer, smartphone etc.
Classification of types of store
Department Stores: As Jaideep (2017) stated that, it sells different types of goods all under one roof. Along with products, they also offer new customer services like reading rooms, restrooms, home delivery, wrapping services, etc. Some of the major departmental stores in India include Shopper’s Stop, Globus, Websites and Lifestyle, etc.
Supermarkets: According to Jaideep (2017), they are large in size, self-service operations, and based on high volume and low margin. They sell food, healthcare and beauty care products, groceries, and other non-food items. Such as Tesco, Wal-Mart, ASDA etc. are supermarkets.
Specialist Outlets: According to the statement of Jaideep (2017), this retail store specializes in a particular merchandise or single product of consumer durable like furniture, jewellery, household goods, consumer electronics, sports goods, fabrics, etc. Such as Victoria’s secret is a specialist outlet.
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Warehouse retailers: following the suggestion given by they sell merchandise at less than retail prices. They buy from manufacturers the seconds, overruns, and off-seasons at a deep discount. Such stores are owned by manufactures or departmental stores. Pantaloon Factory Outlets and Levi’s Factory Outlets are an example of off-price retailers. Example of smaller warehouse retailers are Sacramento-based Nugget Market and bigger warehouse retailers are Kroger and Albertsons.
Catalogue stores: Jaideep (2017) recommended that, normally, they specialize in hard goods like houseware, jewellery, and electronics. Customers walk into the showroom and refer catalogue of products they want to buy. Sometimes, they have to write the product code number on a chit and handover to salesmen.
E-retailer: regarding the definition given by Jaideep (2017), it is also known as online or Internet marketing. Transactions are made via the Internet. Full detail is placed on the web. Customers can choose and buy by sitting in the home and the company will deliver the product to their address.
Convenience Retailer: Jaideep (2017) stated that Small retail stores offering essential goods which remained open for long hours and all the days of the week and located near residential areas are referred to as convenience stores. They sell bread, milk, grocery products and other essential items.
Discount Retailer: according to the study of Jaideep (2017), this store sells products at discount prices.
Emerging store types
There are five types of emerging store and they are given below:
- Van/Mobile Van Retailing: this type of retailing consists of both delivery retailing and store basis retailing.
- Conference/Party/Event Retailing: this type of retailing store inspires local people by giving them an invitation and doing promotional activities to motivate them to buy their product.
3. Distant Retailing: this type of retailing store does not have any store in real, they do their selling vie to message, calling and giving ads on the internet.
4. Forecourt Retailing: by establishing the store in front of the large infrastructures or in high traffic area these retailing stores do their business.
5. Trade Parks: These retailing stores do their business and promotional work through international trade.
Service versus product retailing
The difference between service and product retailing is given below:
|Service Retailing||Product Retailing|
|1. In Product Retailing the relationship between the consumer and the retailer is developed only when the consumer pays frequent visits to the outlets.|
2.products are tangible and can be very well stored,
3. Standardization is possible in case of product retailing
4.transfer of ownership is possible in case of product retailing
|1. In the case of relationship, the relationship between the customer and the service provider is established from the start itself.|
2. Services cannot be stored due to its intangibility.
3. not possible in case of service retailing
4. transfer of ownership not possible for service retailing
Table: the difference between service retailing and product retailing Source: MSG (2017)
According to Tănase (2007), Location decisions are very complex, due to the large number of factors that have to be considered, and costs associated with, for example, the opening of new stores, can be very high. Site selection is, therefore, a long term decision that implies long term capital commitment. Once a retail site has been chosen, there is only a little flexibility, because this decision usually cannot be changed easily without high losses. Because of its fixed nature, location cannot be changed in the short term, contrary to other elements of the retail marketing mix such as prices, customer service, the product assortment or advertising. These latter factors can be altered if the environment (e.g. consumer behaviour, competition) changes. The main attention in the context of retail location strategies usually focuses on the opening of new stores. However, location decisions relate to the entire physical structure of retail outlets and are thus more comprehensive…………….