Skip to main content

Retailer: Characteristics, Functions and Services

By

Characteristics, Functions and Services of a Retailer


In the fast changing globalized and a technology-driven business world, Retail industry over last few decades has witnessed a sea change. World’s largest retail giant of the present times Walmart is operating worldwide by establishing hypermarkets in various countries by taking the help of sophisticated means of communication as well as information systems technology.
A careful analysis of the trends reveals that in the Fortune 500 list of organizations, 50 are from retail industry and the top rank is occupied by the world’s No. 1 retail giant Walmart. The statistics convincingly reveal how fast the retail industry has grown and paved the path for expansion of business as well as employment opportunities.

Characteristics of a Retailer

  • In the entire distribution chain, a retailer is considered to be the final link, who deals directly with the customer.
  • A retailer purchases in bulk from the wholesalers and sells the products to the customers in small quantities.
  • A retailer essentially maintains a variety of merchandise.
  • The aim of a retailer is to achieve maximum satisfaction by exceeding their expectations and delivering exceptional services.

Key Functions Performed by a Retailer

  • A retailer performs the dual functions of buying and assembling of goods. The responsibility of a retailer is to identify the most economical source for obtaining the goods from the suppliers and passing on the advantages to the consumer.
  • The retailers perform the functions of warehousing and storing. They store the goods in bulk and make them available as per the requirement of the consumer. Warehousing and store keeping helps in ensuring uninterrupted availability of the goods to the consumers.
  • The primary function of a retailer is selling the products to the customers for which various techniques or business practices are being adopted by the retailer to achieve the strategic goals.
  • The prime focus of a retailer is on maximizing customer satisfaction by delivering quality products and services both on cash as well as credit basis. As a result of which, retailer always runs the risk of accumulating bad debts on account of non-payment of the amount from the consumer.
  • A retailer needs to have robust risk management capabilities. Various kinds of risks can be involved in a retail business which a retailer should be well prepared with like loss or damage of the products due to deterioration in quality, perishability or spoilage. A change in customer’s buying preferences or tastes can also affect the retail business to a great extent, or even the products may be damaged due to the natural calamities or vagaries of nature.
  • A retailer performs the crucial function of grading for all those goods which at times are either left ungraded by the wholesalers or manufacturers so that the customers readily accept the goods. The retailer is responsible for the packing of goods in small packages or small containers for the customer’s convenience.
  • The retailers are the direct point of contact or communication with the customers; hence they gather information regarding the changing tastes and preferences of the consumers, pass on the customer feedback to the manufacturers for continuous improvement in service delivery.
  • Retailers act as a vital channel for the launch of new products in the market as they are the direct interface with the consumers and can communicate directly with the targets consumers about the new product features and advantages.
  • The retailers are responsible for the product promotion and advertisement by planning the product displays and visual merchandising for attracting the customers.

Services Provided by a Retailer

To Customers:

  • A Retailer ensures ready stock availability of goods for the customers in sufficient quantities and sells the goods to the customers as per their quantity specifications.
  • A retailer ensures availability of a wide variety of choices of products for the customers by keeping different varieties at various prices and also different brands as well.
  • A retailer can provide credit facilities and heavy cash discounts on the purchase of different products to the customers.
  • Retailers can provide customized services and pay personalized attention to the customers for achieving a higher level of satisfaction with the delivery of product or service.
  • Retailers introduce new products to the customers and also guide them with the usage of the products.
  • Retailers can provide additional services like free home delivery or after sales services.
  • Retailers purchase and maintain a stock of those products which are mostly demanded by the customers. They aim at catering to the requirements of all kinds of customers with varied buying capacities.

To Wholesalers:

  • Retailers are a valuable source of information and feedback for the wholesalers who in turn pass on the same information to the producers of the products. Crucial information related to the changes in the buying preferences of the customers, their experience with the usage of the products, feedback on the prices and quality of the products is passed on to the wholesalers. This helps in improving the existing services and in customizing the product solutions as per the requirements of the customers.
  • A retailer absorbs most of the burden of the wholesaler and also of the manufacturer by selling the goods in small quantities to the customers. The wholesalers are relieved from the burden of maintaining direct touch with the customers and managing the entire gamut of activities involved in convincing the customers for purchasing their products.
  • Retailer supports the wholesaler by acting as a channel for distributing the goods to the customers.
  • Retailer acts as the point of contact between the customer and the wholesaler. Retailers are responsible for creating and improving the demand for various products by taking care of the display and merchandising activities.
  • Retailers act as a major source of funding for the wholesale trade by placing the orders and making payments in advance to the wholesalers for those goods.
Labels:

Comments

Post a Comment

Popular posts from this blog

HUMAN RESOURCE PLANNING AT WIPRO

By
HUMAN RESOURCE PLANNING AT WIPRO Overview of Wipro Wipro started   as vegetable oil company in 1947  Azim Premji, a graduate in Electrical Engineering from Stanford University, at the age 21, repositioned and transformed Wipro (Western India Vegetable Products Ltd) into a consumer goods company  Producing hydrogenated cooking oils, laundry soap, wax and tin containers. 1975 - Wipro Fluid Power to manufacture hydraulic and pneumatic cylinders. At that time, it was valued at $2 million. 1977 - Entry into information technology sector. 1979 - developing its own computers 1981 - selling the finished product. 1980 - moved in software development 2000 - Wipro Ltd ADRs were listed on the New   York Stock Exchange. Employs more than 1,00,000 people in over 50 countries.  A career at Wipro means to learn and grow continuously, opportunities to work on the latest technologies alongside the finest minds in the industry, competitive salaries, stock options and
1 comment
Read more

Three Tips for Motivating Your Customer Service Team

By
Three Tips for Motivating Your Customer Service Team Scripting exactly what customer service employees should do in every situation drains the initiative out of even the most highly motivated workers ! But when you set up a system that enables you to trust your employees to exercise their own judgment and learn from their experience, they may well deliver a far better customer experience. (1) Establish guardrails !  People handling calls should understand where they have latitude and where they don’t. Within those guardrails, your team should be free to exercise judgment. (2) Seek feedback.  Ask customers for feedback after each transaction. Circulate the comments to team leaders so they can see where they’re succeeding, where they still have work to do, and what, specifically, your customers point out. (3)Coaching and support.  Free your supervisors and experienced customer care professionals from some tasks so they can devote time to coach
Post a Comment
Read more

Create a Work Environment That Encourages Employee Engagement

By
Create a Work Environment  That Encourages Employee Engagement Your Managers Are Key When You Want Engaged Employees BY  SUSAN M. HEATHFIELD Does your workplace encourage employee engagement? Probably not. But, it should. It's a powerful factor in your business success. Engaged employees are more productive, customer-focused, and profit-generating and employers are more likely to retain them. According to the Gallup organization, employee engagement is a necessary strategy for companies that want to succeed in the marketplace.  Employee engagement is not a Human Resources initiative that managers are reminded to do once a year. It's a key strategic initiative that drives employee performance, accomplishment, and continuous improvement all year long. It's the outcome from how your organization interacts with people to drive business results. Just as organizations cannot create employee empowerment, employee motivation, or employee satisfactio
1 comment
Read more