Unit 6: Introducing Retail Business

Facts Around 15% of the UK workforce (3M)work in retail. There are roughly 300,000 retail businesses in the UK. Retail sales are roughly £300 billion every year. More than 150,000 online retail business. More than 600,000 British jobs are in e-retail

What is Retail? Before understanding the concept of retail, let us first go through a few terminologies. Market - Any system or place where parties are engaged in exchange of either goods or services is called a market. The parties are often called buyers and sellers. Goods - Tangible (things which can be seen and touched) products which are transferred from a seller to the buyer to fulfil the latter’s need are called goods. Example: Tim owned two laptops which he sold to Mike using Ebay. In this case Jack is the seller while Mike is the buyer. Laptops are the goods which were earlier in Jack’s custody and now belong to Mike. Ebay would be the market

Definition Retail involves the sale of goods from a single point (Shopping centres, markets, department stores, etc) directly to the consumer in small quantities for his/her end use.

The supply Chain Manufacturer Retailer End user (Wholesaler) Manufacturers - the ones who are involved in production of goods with the help of machines, labour and raw materials. Wholesaler - one who purchases the goods from the manufacturers and sells to the retailers in large numbers but at a lower price. A wholesaler never sells goods directly to the end users. Retailer – comes at the end of the supply chain who sells the products in small quantities to the end users. The end user goes to the retailer to buy the goods (products) in small quantities to satisfy his/her needs and demands. The complete process is also called Shopping. Shopping - The process of purchasing products by the consumer is called shopping.