Retailing

Retailing

Introduction

The global market advances in production, technology and in add up to shopping channels and progressively more informed and movable consumer base and modifications in the modes, means, and manner in which customer shop. The word 'Retail' originates from a French word 'Trail 'which means 'to cut off or to divide', which means to sell in small amounts. Retailing is the conventional process of selling products and services by a business or individuals to the end user. Firms or individuals engaged in retail are commonly known as the retailers, and perform the functions of the market intermediaries. Retailers usually purchase the goods and services in bulk from the direct manufacturers or from the wholesalers and then sell it to the end consumer of the respective product in small quantities to earn their spread and profit. Retailing can be made through different ways which mainly include door to door, delivery and most importantly from the fixed location that physically appear in the market as retail stores, and purchasing outlets. Retailing has now become an essential fraction of marketing strategy of every firm. Porter defines the retailers as one of the most important chain member of value creation activity in a way that it is the one who proposes the ultimate and actual value in front of the customer after the marketing of the product, and bad word of mouth can result into product failure (Mahajan, V., R. Srinivasan, and J. Wind, 2002).

Discussion

Timeline-History of Retail

History of Retailing goes back in the early eighteenth century to the United States which was formerly confined to general stores only, whereas specialty stores were only located in the areas which holds population of 5,000 and more. Super markets started to bloom in Canada and US. The retail industry transformed from the mail order businesses to mom & pop retail stores, department stores, big bag discount stores and finally to the online retailing, in short the industry changed significantly. Retail in the 18th century was considered to be a general store only. But the scene gradually changed. When the major economic changes roil the retail sector it touched all the industries. The major historical milestones are mentioned below:

1902 JC Penny was founded.

1915 The first supermarket named Upham's Corner was founded.

1916 Piggly Wiggly was the first grocery chain store to offer the national brands, check line and self service.

1934 Merchandise service was started.

1946 Zero food founded and forms SYSCO.

1951-1963 Caldor, Zayre, Hills Department Store, Target Stores, Kohl's stores were founded.

1962 Wal-Mart stores were established.

1966 Best buy Store was founded with the 162 stores of Kmart and 753 stores of Kresge.

1974 The first time use of the barcode system.

1981 Safeway was reported to be world's largest chain of supermarkets.

1990 The Wal-Mart become the largest retailer of the world with the sales of $32.6 billion.

1995 The great Amazon.com was launched and blooms as a new creature in the world of retailing.

1999 Kmart celebrated hundred years of retailing.

2001 Apple opens its retail store.

2005 Macy's Corporation acquires several ...