Following are the characteristics of
Retailer generally involves dealing
in a variety of items. A retailer makes purchases from producers or
wholesalers in bulk for sale to the end consumers in small quantities.
Retail trade is normally carried on in
or near the main market area.
Generally, retailers involve buying on
credit from wholesalers and selling for cash to consumers.
A retailer has indirect relation with
the manufacturer (through wholesalers) but a direct link with the consumers.
retailer buys a wide variety of goods from different wholesalers
after estimating customer’s
demand. He selects the best merchandise from each wholesaler and brings
all the goods under one roof. So, he performs the twin functions of buying and
assembling of goods.
A retailer maintains a ready stock of goods and displays them in the shop.
The retailer sells the goods in small quantities according to the demand taste
and preference of consumers. He employs efficient methods of selling to
increase his sales turnover.
and Packing: The retailer grades the goods which are
not graded by manufacturers and
wholesalers. He packs goods in small lots for the convenience of
A retailer always keeps stock of goods in anticipation of demand and bears the
risk of loss due to fire, theft, spoilage, price fluctuations, etc.
Retailers often carry goods from manufacturers to their retail outlets.
retailers grant credit facilities to his customers and provide the facility of
return or exchange of goods. Door delivery and after sale service are provided
The following are the services rendered
by the retailers.
Retailers provide the following services
to manufacturers and wholesalers.
in Distribution: Retailers relieve the manufacturers and
wholesalers of the burden of collecting and executing a large number of small orders from various
Information: Retailer supply valuable information to
wholesalers about changes in tastes, preferences, fashion etc. of consumers
Scale Operation: The manufacturers and wholesalers are
freed from the trouble of making individual sales to consumers in small
quantities. This enables them to operate on, at relatively large scale and
thereby fully concentrate on their other activities
in Promotion: Retailers participate in the
promotional activities carried by manufacturers and wholesalers such as short
time offers, coupons, free gifts, sales contests, etc. Retailers help in
promoting the sale of the products.
Attention: The retailer is able to provide more personal
attention to his customers than the
wholesaler is, He gives special services on the spot when the articles require
A retailer provides the following
services to consumers.
Supply of Goods: Retailers maintain a ready stock of
various products of different manufacturers
for sale to consumers. This enables the buyers to buy products as and
Products Information: The retailers provide important
information about the new arrival of products through their personal. Selling
efforts and effective display of products.
Facilities: Sometimes retailers provide credit
facilities to their customers and enable them to increase their level of
Selection: Retailers generally keep stock of a
variety of products of different manufacturers. This enables the consumers to
make their choice out of a wide selection of goods.
Retailers provide free door delivery
services to the customers.
They provide after sale service to
They allow cash discounts on their
Payment of Taxes
Retailers collect General Service Taxes
and pay it to the Government which leads to increase in national income.
Helps in Improve the Standard of Living
Retailers help the society to improve
the standard of living of people and contribute to economic development of a
Implementation of Government Policies and Acts
Retailers implement the government
policies and enforcing the acts such as prohibition of tobacco products, prohibition
of child labour, prohibition of adulteration considering common interest.