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Retail trade
Retail trade involves the sale of goods directly to consumers. There are various types of retailers including itinerant retailers like hawkers and peddlers, fixed shop retailers like small stores and large stores like department stores. Retailers provide services to both producers such as promotion, and consumers such as regular supply and credit. Documents used in internal trade include invoices, debit notes, credit notes, and receipts.
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Retail trade
- 1. RETAIL TRADE Trade inwhich the trader sells the goods to consumers according to their requirement.
- 2. Characteristics of retailtrade Goods are sold to ultimate consumers Goods are purchased and sold in small quantities Varieties of goods are sold. Direct contact with consumers Area of sale is limited/ Last link in the distribution channel.
- 3. Functions of Retailer Forecast the commodities useful to his consumer. Collects varieties of goods from different wholesalers. Sells goods according to the requirement of consumers. Sells on credit basis and provide home delivery service. Collects information related to market. Takes risk arising due to decrease in sales, price of goods.
- 4. Service of Retailers Serviceto producers 1. Sale of product in small quantities 2. Collecting Customers Demand 3. Advertising and promotion of Product Service to Consumers 1. Regular supply of goods 2. Information about products 3. After Sale Service 4. Credit Facility 5. Ease of Buying
- 5. Types of Retailers ItinerantRetailers Hawkers and Peddlers Market Traders Street Traders Cheap Jacks Fixed Shop Retailers Small Retailers Stall Holders General Stores Single Line Stores Specialty Shops Large Retailers Departmental Stores Multiple shops Consumer co-operative stores Supermarket Mail Order House
- 6. Itinerant Retailers Hawkersand Peddlers : Carry goods on wheeled vehicles or on their head. Market Traders: Sell merchandise on some selected day of the week. Street Traders: Display their goods at the busy pavements of corners and sell the goods to public. Cheap Jacks: Have temporary shop structure and move from one place to another.
- 7. Small Retailers StallHolders: Open wooden stalls. Goods sold are snacks, tea, cigarettes, stationary goods. General Stores: Stores remain open for long hours, provide credit facility, home delivery Single Line Stores: Deal in specific line of product with varieties. Speciality Shops: focus on specific needs of customer. Secondhand Shop: Deal in second hand or used goods like books, furniture etc.
- 8. Large Retailers Advantages: Large Scale Purchase Purchase at one place Economy in Advertisement Division of labour Selection Allied Service Good quality goods Centralised location Departmental Stores: Big Retail store with different departments or sections dealing in different line of products forming a complete unit in itself. Example: BigBazar Disadvantages: Large Capital High Prices High operating Cost Lack of personnel touch No credit purchase Inconvenient Location
- 9. Large Retailers Advantages: Low prices Collective advertisement Stock transfer Specialisation Cash Sales Beneficial Location Fixed prices Compensation of loss Multiple Shops/Chain Stores: One Organisation sets up shops in different localities of the city or in different cities. Example:Bata Disadvantages: Large Capital Lack of Personal touch Limited varieties of commodities Rigidity Lack of credit facility
- 10. Large Retailers Consumer Co-operativeStores:Stores are operated and controlled by consumers themselves. Advantages: Quality goods at cheaper rates Easy control Distribution of profit among members Economy in managing expenses Cash Sales Elimination of middlemen Disadvantages: Shortage of funds Lack of initiative Lack of professional managers
- 11. Large Retailers Super Markets:An organisation where each section sells different commodities. Advantages: Variety of goods Easy control Fixed price Cash Sales Quality goods Less price Disadvantages: High capital Mishandling of goods Lack of personal contact No credit sales
- 12. Large Retailers Mail OrderHouse: a retail outlet where customers send the orders to the sellers by post and the seller sends the goods by post. Advantages: Limited Capital requirement V.P.P facility Wide Area Relief from shopping Elimination of middlemen Disadvantages: Cost of Advertisement Heavy cost on postage Difficulty in Dispatching heavy things no credit facilities No personal contact Damage in transit Delay in receipt of goods Damage in transit
- 13. Vending Machine A vendingmachine is a machine that dispatches merchandise when a customer deposits sufficient money into slot or vent to purchase the desired items.
- 14. Documents used ininternal trade Performa Invoice- price quote a seller gives to a buyer which includes the precise cost of the goods at the time of transaction Invoice- Statement given by the seller to a buyer includes tax. It is also called as bill. Debit note- Debit note is made by a seller or buyer to debit the account of the person named therein. Credit note- It is made by the buyer to credit the account of the person named therein. Lorry Receipt – It is issued by the transporter. It contains the name of the consignor and consignee, registration number of goods carriage in which the goods are transported, details of the goods transported details of the place of origin and destination. Railway Receipt- A railway administration will issue a receipt .