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What is retail: meaning, features and current state. What is retail and retailer

The trade sphere is also acquiring new concepts that came to us from in English, which often replace familiar Russian words. This is what happened with retail trade, which received a sonorous name – retail.

Retail – what is it?

This word has English roots. Translated “retail” means “retail”. In essence, retail is the same as retail – it is the sale of products individually or in small quantities.

Retail enterprises conduct trade by piece. An important condition for retail is that the product purchased by the buyer must be intended for household, personal, or other use not related to commercial or entrepreneurial activity.

The sale of goods at retail to the end consumer is necessarily accompanied by the issuance of a cash receipt and compliance with the “Law on the Protection of Consumer Rights.”

Another feature of retail is retail price goods are always higher than the wholesale price by the amount of the trade margin. IN different areas such a markup can reach values from 25% to 200%. It is from this difference that retailers make money, and it is from here that they find the resources to organize a sale. Few people actually sell goods at a price below their cost - most often the trade margin is simply reduced.

Types of retail

Retail trade can be conducted in different formats.

Grocery retail. One of the most resilient areas of retail trade, even during a crisis. After all, everyone always buys food; these are goods of everyday demand. Food retail is the retail trade of food products, in which large volumes of goods are collected in a large retail area. A specific example are grocery supermarkets and hypermarkets.

Street retail. This format can be called historically established. Shops are located on the first floors of houses, on streets with a large flow of people - not far from the center and busy. Street retail is competing with food retail located in shopping centers.

Non-food retail. Retail trade in non-food products, for example, stationery, sports, cosmetics and other products not related to the food industry. Grocery stores It is quite common to include some of these categories in their assortment, calling these products “related.”

Online retail. Retail trade is carried out through online stores. The visitor can choose the product he likes, order delivery and pay for everything both by bank transfer and in cash.

Network retail. This format provides for a network of stores united by a single trading concept. Typically, such stores are all of the same format and belong to the same owner. In addition, they have a unified system for purchasing and delivering goods. Thanks to these features, prices in chain stores are often lower due to such cost savings.

Mobile retail. An established market niche divided between several mobile operators. They offer communication services to their consumers.

Retail today is an entire sphere of trade, which in terms of its turnover can be compared with wholesale. The main goal of retailers is to serve as many customers as possible with minimal costs. Modern technologies often come to the rescue - self-service systems, acquiring, payment terminals, vending. As experts predict, in the future the range of retail services will only expand and improve.

Mezentseva Vasilisa

Available through retail stores. There are a huge variety of them, both in size, from small convenience stores to huge hypermarkets with an area of thousands of square meters. A very significant percentage of our country’s residents work in stores, and the fate of many citizens depends on the success of retail trade. All this is called retail, and it will be discussed in this article.

What is retail

Retail (from the English Retail is translated as retail) is a way of selling goods to the end consumer through offline stores. Retail is often called retail, retail trade, retail sales. Retail is stores and other stationary points where any client can come and buy goods at a specified price.

What is a retailer

A retailer is a company that engages in retail trade - shops, supermarkets, hypermarkets, street vendors, markets and many others. Retailers can operate in various segments, here are the main ones:

– fast-moving consumer goods
BiKT segment – stands for household and computer technology
– Do it yourself translates as do it yourself. These are home and garden stores.
Electronics are stores of modern electronics: PCs, cell phones, tablets and accessories. This segment is often called cellular retail.
Furniture
Sport
Cosmetics
Pharmacies are now gaining popularity
Car showrooms

There are many more segments, but the above include the vast majority of stores, as well as the most. In addition to large retailers, everyone often encounters small retail. One of the most ancient types of retail is street retail, that is, street trading. To this day, old women gather near high-traffic areas and sell various goods; this is also an example of retail trade.

Network retail

Chain retail is a group of stores, usually united under one brand, implementing the same product policy, and also having a common infrastructure: warehouses, suppliers, logistics and partners. Such stores can be united under one owner; franchising is often used.

Franchising in retail

Franchising is very common in online retail, that is, you, as the owner of the business (franchisee), use resources and work under the patronage of your partner (franchisor). The franchisor provides you with ready-made business processes, brand, equipment, access to CRM and much more. To whom, in turn, the franchisee gives part of the profit. All you need to become a franchisee is to buy a so-called franchise.

Chain retail is a network of single-format (less often multi-format) stores united by one owner, a single logistics and purchasing system, and a single product policy. All this allows us to further reduce costs, which means offering the buyer prices for products that are significantly lower than in non-chain retail outlets. Low price and constant availability of the main assortment, accessibility of retail outlets, network retail attracts a large number of consumers and receives large profits due to turnover.

Classification of network retail

As we wrote earlier, retailers differ in the goods they sell in stores. In addition, this chain retail can be divided according to the size of the stores. The location, traffic and average bill of a retail outlet depend on the area.

Hypermarket– retail outlets with an area of 4 to 20 thousand square meters. meters selling food and non-food products in a self-service format. The largest hypermarket in Europe occupies an area of 67 thousand square meters. meters is located in Ireland, in Malaysia there is a hypermarket with an area of 112 thousand square meters. meters. The assortment of hypermarkets exceeds 30,000 items. Hypermarkets are often located near residential areas, less often outside the city near busy highways. The average check for a hypermarket is 4,000 rubles, but can reach 10,000 rubles.
Supermarket– self-service stores with an area of 0.4 to 4 thousand square meters. meters. The product range of such stores usually amounts to about 8,000 items, although there are exceptions of up to 22,000 items. General food products or non-food products can be sold in a supermarket. Supermarkets are located close to residential areas, often right in them. The average bill is about 2000 rubles.
Convenience store(within walking distance or a store around the corner) – small-area stores, usually aimed at selling food and essential goods. Convenience stores are located inside residential areas and in the city center. Most of the clients are residents of nearby houses. in such stores less than 1000 rubles.

In Russia, store areas are regulated by GOSTs. In addition to their size, chain retail stores differ in their pricing policies.

Discounter– low-cost stores. The low price is achieved by reducing the costs of rent, equipment, and personnel. Discounters do not have a wide product line, and there are also no high-price segment products. The product line of the mid-price segment is very limited.
Mass market– stores designed for clients with an average level of income. The product line is the widest, the emphasis is on price-quality ratio. Unlike discounters, mass markets are well designed and have good level service.
Premium Boutiques– stores selling premium goods. The bet is placed on the client with high level prosperity. Such stores have rich decoration and individual approach to every client. It often happens that entrance to such stores is carried out using club cards (although a similar approach is also found in other stores).
Fixed price store– in such stores the price for all goods is the same. A relatively new store format on the Russian market, it is quite rare.

In addition to division by area and pricing policy, there is a division of chain stores by specialization: department stores and professional stores. The first includes a range of products for the general consumer and household use. In professional stores, the products usually presented are not for household use.

Key retailer KPIs

Supervisors and salespeople are used to evaluate the effectiveness of retailers.

Rating of retailers for 2015

In Russia, large chain retailers were born in the 90s, which now share the market with large Western players who came to our market in the 2000s. In the West, retail developed gradually, but in Russia everything happened in a revolutionary way. Now the market is already divided, but several large transactions to unite retailers are foreshadowed.

A is intended for direct use.

The relationship between seller and buyer in the retail trade system is regulated by a special law. IN Russian Federation This is a consumer protection law.

The subjects of the retail trade process are the seller and the buyer. An indispensable attribute of retail trade is a cash register and a cash receipt. Retail trade includes the sale of goods through vending machines.

There is a concept format retail store. This is a set of characteristics inherent in any type of store. These characteristics are:

square trading floor
number of product items
level of customer service
product placement technology

There are the following retail trade formats:

cash&carry

Trading can be a powerful tool foreign policy. To this day, the ability to trade greatly influences the power of the state. If we compare retail trade as a branch of the economy, for example, with ferrous metallurgy, then retail trade has undeniable advantages: it does not pollute the environment and does not require raw materials for reproduction.

Retail history

The history of retail trade goes back a long way. Since the dawn of material relations, people have exchanged goods and services. In Russia in the pre-revolutionary period, retail trade was well developed. There is information that, for example, in Chelyabinsk in 1913, English bicycles of the 1912 model were sold. There were three guilds of merchants: the turnover of the merchant of the 3rd guild did not exceed 5 thousand rubles per year, the turnover of the merchant of the 2nd guild did not exceed 100 thousand rubles per year, the merchant of the 1st guild (the richest) traded per year for no less than 100 thousand rubles .

The economic basis of retail trade is the trade markup (margin). Trade margin is the difference between the purchase and sale prices. Trade margin is the main income of a retail enterprise; as a rule, in the grocery trade it does not exceed 25-30%, and, for example, in the clothing retail trade it can reach up to 200%. From the received trade margin, the merchant pays current expenses, such as: rent of premises, wage employees, security, telephone, cleaning, etc., profit is generated from the remaining funds trading enterprise. It ranges from 1-3% in a large chain grocery retail to 20-30% and even 50% in non-food retail.

But trade margins are not the only source of income for retail. Retail also makes money from advertising, holding promotional events, and selling retail space and shelf space. In order for a product (this is typical for food trade) to be sold in any of the Russian networks, it is necessary to pay a special “bonus for entering the network.” In this way, operators of this market increase the profitability of their business.

The total volume of global retail trade is approximately $10 trillion, with Western European countries accounting for about a third, and Russia accounting for about 2% of the world market.
The Russian retail market ranks 12th in the world in terms of volume; it is expected to rank 9th by 2008, ahead of Spain, Brazil and Mexico.
The largest retail chain is the American company "2005 financial year US$315.6 billion.

Notes

Literature

Barry Berman, Joel R. Evans Retail: a strategic approach = Retail Management: A Strategic Approach. - M.: "Williams", 2003. - P. 1184. - ISBN 0-13-026334-6

The concept of retail and retailer. Development of this direction in modern Russia

Retail refers to the process of retail trade, that is, the sale of goods to customers without further resale.

The word “retail” is borrowed from English and means “retail trade, sale of goods or services to the final consumer.” A synonym for the concept of “retail” is the word “retail”.

Respectively, retailer may be called a company or individual entrepreneur engaged in retail trade and sale of services (supermarket, clothing store, car dealership, mobile phone store, bank, etc.).

The predecessors of retail are street bazaars, markets, and retail stores. Today it is one of the most successfully developing sectors of the economy. The scale of its development in Russia and in the world is comparable in turnover to the segment wholesale trade. A typical example of modern retail centers are huge shopping complexes - malls. The basic principles of retail are publicity and accessibility of services.

IN Soviet period domestic buyer for a long time lived in conditions of commodity shortage, so the emergence of functional supermarkets, making it possible to fill the consumer basket with the help of improved service and in one place, certainly won the sympathy of the population. The popularity of retail in Russia is also influenced by behavioral trait citizens - not to set aside funds for storage, but to spend them immediately, which is also facilitated by the fear of the onset of the consequences of the economic crisis.

A product or service sold within retail, unlike wholesale trade, is not subject to further resale, but is intended for direct use by the end consumer.

Relationship between retail entities - seller and buyer, in the retail trade system of the Russian Federation is regulated by the Law on the Protection of Consumer Rights. Required condition organizations retail sales is the presence of a cash register issued to the buyer. Key employees who ensure the normal functioning of retail outlets: sales consultants, merchandisers, etc.

Kinds

The type or format of a retail store is understood as a set of its main characteristics (sales area, methods of serving customers, technology for placing goods, number of product items).

Distinguish several formats retail trade, including:

About food retail, watch the following video:

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Goals

Purpose modern retail is service as possible more retail consumers of goods with the least labor and time costs. This is possible with the help of special retail technologies, the most striking embodiment of which are self-service supermarkets, payment terminals, and ATMs.

In the process of organizing retail work the following issues must be resolved:

Retail technologies are a set of methods, techniques and tools for bringing goods and services to the end consumer.

The following are distinguished: characteristic retail technologies:

Working with wholesale volumes of goods that the store sells at retail. This technology is aimed at the mass consumer, and its task is to reduce costs: to serve a maximum of customers with a minimum of staff.
Accumulation in one place of many different goods and services. Retail offers a wide variety of goods collected in one place, as a result of which the buyer has the opportunity to purchase a whole range of necessary goods with significant time savings.
Separation of goods into categories depending on customer profitability (economy, medium, premium, luxury, deluxe). Work with each economic group of the population is carried out through specially designed retail technologies. As a result, a buyer of any income level will definitely be able to purchase the desired product.
The use of various ways to attract customers: using the design of the retail network, the location of the goods in mall etc.
Application of the necessary modern commercial equipment and self-service technology.
Automation of the procurement process, accounting and storage of goods.

Success The technologies used in retail depend on the following factors:

the number of buyers (clients) who were attracted and made permanent;
level of profitability (depending either on the number of goods sold or on a significant markup on a limited number of goods);
conversion level (the ratio of visitors to a retail outlet and the number of purchases).

What does a retailer's profit consist of?

The main way Making a profit in retail is the formation of a trade markup or margin. The margin is the difference between the purchase and sale prices. As a rule, in grocery trade it is 25-30%, and if we're talking about about non-food retail, it can reach a value of 200%. These figures are maximum; a higher markup is not considered appropriate.

From the cash profit received, the retailer pays various operating expenses (rent of premises, employees, communications, transport and cleaning services, etc.). will be equal to the difference between the amount of margin and the amount of current expenses. Its size can range from 1-3% in large chain food retail to 20-50% in non-food retail.

Other income for the retailer can include advertising, company promotions, and selling retail space (receiving a so-called “network login” bonus).

Overview of companies in this field

Promsvyazbank is commercial bank, providing retail services to the public. In 2015, the bank ranked 11th among Russian banks in terms of assets. The products and services of this retailer cover the vast majority of regions of Russia, among its clients there are over 100 thousand domestic enterprises and 2 million people who use retail services.

Megaphone is a popular Russian telecommunications retailer company providing services to the population cellular communications, local telephone service, Internet access, cable television and related services. Today it operates in 83 constituent entities of the Russian Federation, its clients are about 75 million people.

Liga Retail is a retail project created in 2011 and is an event within the framework of corporate sports - a championship, held annually in spring and autumn. Unique in Russia, an industry competition among retail companies makes it possible to show sports solidarity and popularize sporty look life, to form the values of friendship and mutual assistance.

X5 Retail Group is one of the most successful domestic multi-format food retail companies. The company operates several stores retail chains: Karusel hypermarkets, Perekrestok supermarkets, Pyaterochka convenience stores. Since its founding (2006), X5 Retail Group has become the largest grocery retailer, secured a strong position in the relevant economic segment, and won the trust of regular customers.

Euroset is a well-known Russian retail company that owns a network of cellular communication stores. The company was founded in 1997 and in 2008 occupied 37% Russian market mobile phones. A significant feature of Euroset is its active and outrageous advertising campaigns.

Today the company trades cell phones, accessories, portable digital equipment, mobile communication services, provides the opportunity to make various payments, and has its own logistics service.

As the level of well-being of citizens increases, the purchasing power of the population also increases, which ensures the development and prospects of retail trade. Every year, consumer interests are increasing (for example, previously everyone could do without cellular communications services and many without loans), so the range of retail services will continue to expand and improve.

New technologies for modern retail will be discussed during the following conference:

Since most trading technologies come to us from abroad, a new word has appeared in the business dictionary - reteiler or from English. – retailer, reteil, respectively – retail trade. In this article we will analyze these concepts and the reasons why they are so ingrained in business slang.

Who are called retailers in trade?

First of all, a retailer is an organization, company, firm that sells goods at retail to the end consumer. If a company acts as an intermediary or wholesaler, it already operates according to the rules of the B2B market.

Basically, they sell consumer goods in small quantities. A typical example of retail trade is our supermarkets. , can be sold next to more expensive and less popular goods, such as bread, but after walking just 10 rows, you can buy a fishing chair or a suitcase. Be that as it may, a person will buy both for personal use, and not for entrepreneurial activity. By the way, a car dealership is also considered a retailer, despite the high cost of the goods and their quantity sold to the buyer.

When a network is created in a business, a network retailer with one name (brand) appears, for example: Wal-Mart, Amazon, Target, Metro, ATB-Market, Auchan, etc. They gained their popularity due to their wide range, low prices on the product and the correct geography of store placement.

What defines a retailer in trade?

Availability of a retail outlet with a permanent geographical location in the form of a store, boutique, supermarket, market;
A retailer can be either multi-profile or branded, displaying goods only from a specific brand. In an advertisement for such a store, you can hear: “Official retailer.... Brand name";
Mandatory retail store equipment: cash register, receipt terminal, or checkbook;
The seller directly communicates and sells to the buyer;
Marketing companies and retail product promotion are different from marketing in retail. They often host events that are very effective in retail.
Loyalty programs (cards, chips, bonuses on receipts, etc.) are regularly available in almost every store;
Merchandising of FMSGI group products is a tool of the retail market. It is necessary, since the rules for placing goods on shelves play a role great importance For of this business— it brings income to retail, more about this;
The range of goods, the availability of a warehouse, logistics - all these are mandatory things that almost every retailer should have.

How do retailers work?

Margin and markup rules in retail

The goal of all retailers is to make a profit from sales; all trade is based on this. To do this, for each product, the seller can make a markup from 25 to 300% or, in another way, the markup is called margin. Margin is the difference between the initial cost of a product and the cost of selling it to the end consumer.

A small markup, usually on consumer goods. Sometimes retailers even use a zero markup as a marketing ploy and a tool to attract customers to their stores. They cover their losses on other, highly profitable goods, but everyone in the area knows that it is cheaper there, and you need to buy everything there.

This scheme works mainly in supermarkets. For getting better conditions For the purchase of goods, supermarkets negotiate directly with product suppliers and even engage in their own imports to avoid intermediaries. This gives them the opportunity to sell goods cheaper, which is one of their competitive advantages.

Retailers can afford a markup of 200-300, or even 1000% on clothing. It is due to such markups that they can make sales with discounts of 30, 50, 70%.

It is impossible not to mention mobile retail. Retailing can be done online, through phone apps, or through retail company websites. Sitting on the couch, today you can buy anything you want, even the same products.

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