A1 The Nature of Retailing
Retailing is the sale of goods to customers. It is the stage in the distribution process where retailers typically purchase in bulk from wholesalers and sell in individual or small quantities to customers. Retailers include brick and mortar stores and online sellers.
Value added is the difference in the cost of producing a product and the price it is sold to the customer. Retailers can add value to products using a range of methods including high levels of customer service, product expertise and convenience.
The Development of Retailing
The development of retailing is thought to have begun with market places that date back to ancient civilisations such as Ancient Greece and the Aztecs. In the 17th century, more permanent stores began to emerge in towns across England. In the 18th century, town shops began to take share with interiors and shopfronts that are similar to what we see today. By the end of the 18th century, shopping arcades began to emerge. These were buildings that held multiple vendors. The 19th century saw the emergence of the department store and mail order catalogues. The 21st century saw the rise in online retailing and the decline in the brick and mortar store.
Retail Formats
The high street is the main business street in a town or city where many retailers can be found. High street retailing has the benefits of high foot traffic. Many high streets have clothing stores, cafes, banks and estate agents amongst others. Due to the high density of stores, shoppers may visit multiple stores in one outing.
Out-of-town shopping centres are large shopping malls with many retailers in one very large building. The aim is for shoppers to complete all of their shopping in one outing and without suffering the negative effects of bad weather. These shopping centres became more desirable as increasing traffic made travelling into town and city centres more challenging. Many were built in areas where land was cheap meaning large centres with ample car parking could be made available.
Retail parks are purpose built shopping areas on the outskirts of towns and cities. They are primarily aimed at providing stores that customers need to drive to due to the size of the items they would purchase. This includes garden centres, furniture stores, bike stores and audio visual stores. They are generally easily accessible by road and have large numbers of parking spaces.
Online shopping is the purchase of goods from websites which can then be delivered to a customer’s address. Businesses can create thorough descriptions of their products including photos and videos, include customer reviews and easy payment methods. Online shopping has become very popular due to its convenience.
Bricks and clicks refers to a strategy where businesses use a combination of physical stores and an online presence.
