Introduction
The word retail come from French word which means to out a big lots into small lost. It describes the most important function of retailer which is buying goods in large quantity from wholesaler and selling them in small quantity to consumers.
Meaning:
Is the process buying goods in large quantity from producers, manufactures or whole seller and selling them in small quantity to final consumers?
OR
It includes all activities which are related with buying goods in large quantities from producer manufacture or whole seller and selling them in small quantities to the final consumers.
A Retailer
Is a person/trader who buys goods in large quantities from whole sellers and selling them in small quantities to find consumers.
Necessary for retailing
Is necessary due to the following condition
(i) Impossibility of consumers to approach different manufacture or producers and whole sellers who are scattered over large area.
(ii) In ability of consumer to buy large stock due to having in a adequate funds.
(iii) Impossibility of consumer to buy large stock and keep them in their houses which may expire or destroyed.
FUNCTIONS OF RETAILER
A retailer performs the following functions: –
1. Market survey / market research
A retailer is required to perform about consumer preference that is what they like and what they don’t like.
2. Buying
After making survey about consumers’ preferences he must buy for them he must be a good buyer who buys goods of a quality and at fairly / cheap price.
3. Transport
A retailer arranges for transfer of goods from supplies ware house to his premises or sometimes he can arrange transport of goods from his shop to his customers place.
4. Storage
The retailer keeps goods for later use or delivery in order to avoid damage, oversupply or scarcity.
5. Breaking (Bulk breaking)
This means buying in large quantities and sell in small quantities.
6. Selling
He sales good to consumer usually in small quantities.
7. Advertising
After storing the goods he is able to require informing the consumer about what products are available in this shop.
8. Display and advice
He displays his goods in order to give his customer opportunity to select the one most suitable to them.
9. Selling and sales promotion
He is required to sell his goods to his customers together with giving in activity or motivation.
10. Financing
The retailer act finance through providing credit facilities (by allowing credit).
11. Stock control and book keeping
He is expected to keep books of record, regarding to receipt closing balance of stock in terms of quantities, Also he had keep the books of account in order to control the movement or other terms of money.
THE QUALITIES OF GOOD RETAILER
The sources of retailer depend on a number of factors. The most important being person quantities qualities1.He should be pleasant in his dealing his customers
1. He should know how to communication with his customer i.e. use of soft and good language to customer e.g. you are welcome
2. He should be a good buyer by knowing what to buy, how buy, how much buy where to buy and unit price to buy.
3. They should be a good administrator and organizer so as to manage and control subordinates and also to control inflow and out flow of money in the business.
4. He should be able forecast the demands of his customer as regards to quality, quality taste, fashion parkage, change in demand and appropriate price to be charged to his customers.
5. He should be honest to his customer “The get rich quick” must sell him something types of altitude does not pay in the long run. Honest in dialing with customers without cheating is very important propaganda on selling do not pay positively in the long run.
6. He should be cooperative to his customers and pay them promptly. This would on the other hand earn him maximum cash discount.
7. He should be tactful person in his dealings with customers
IMPORTANCE OF RETAIL TRADE IN COMMERCE.
Retail trade is performed by a retailer. The following are the important of retailer to producers, whole sales and to the public or consumers.
IMPORTANCE OF RETAILER TO PRODUCER AND WHOLESALER
1. He acts as specialist in a selling.
2. He finances the wholesaler by buying from his and paying him important.
3. He offer storage facilities by doing so he clears production
4. He passes back the information regarding public demand for different types of goods.
5. The retailers sell in relatively small quantities can keep var red stock
IMPORTANCE OF RETAILERS TO CONSUMERS
(Services provide by a retailer to consumer) Public.
i) The retailer act as the consumers purchasing agent
ii) He supplies the right kind of goods at reason about price
iii) Assure Variety of goods for customers
iv) Offer after sales services
v) Finance the customers by offering credit worthiness to them
SETTING OF BUSINESS IN THE RETAIL TRADE
Factors to be consider before (starting) interring into retail
1. CAPITAL
Is on item of money must be available the amount of capital required also comprises. The following
i) The required building whatever is to be rented or build’
ii) Depends upon furniture and fittings.
iii) The amount of stock needed to start with.
iv) The amount needed to be as articulating capital.
v) The moment needed to remain as a receive.
2. SOURCE OF CAPITAL
The sources of capital are
i) Provision from own saving
ii) By finding a partner.
iii) By borrowing from friends , back and other financial institution
iv) By borrowing back profit cones from his business.
3. LOCATION (POSITION)
You have to select an area that situated to the nature of the business choose of location depends of the following
i) Availability of market
ii) Good communication system
iii) Reliable security banking facilities.
4. PURCHASING OF STOCK
Buying of stock is the essence of the business. Any single mistake in purchasing will destroy the whole business; you need to make a decision in purchasing.
i) The quality to buy
– Good quality and update goods will always attract costumers
ii) The quantity
-Overstocking should avoided because.
a) Fashion may change and goods may depreciate or become absolute.
b) Turn over may be very small
c) Prices may fall
5. SOURCES OF SECURITY
For the retailer there is usually the source of supplies
i) Wholesaler
These are common source of supply for the retailers
ii) Manufacture / producers
Large scale retailers buy from manufactures or producers.
6. ATTRACTING CUSTOMERS
A retailer has a task of attracting them through the following.
i) Personality and creativity of retailer.
ii) By keeping the shop tidy attractive and pleasant to powers. So that they may come again and more.
iii) Offering delivery after sales services.
iv) Insuring free supplies.
v) Offering cash discount to these who pay promptly.
vi) By exhibiting goods in shows and other displays.
7 DELIVERY
How goods are to be brought to your shop. The choice at which (made) of delivery to be used depend on types of goods their involved urgency quantity and also the time of delivery.