The term retail means different things to different people, but you wouldn’t be alone in assuming it is related to the sale of goods and services in small quantities to consumers. However, have you ever wondered what retail means outside of this common usage? If so, keep reading. We’ll explore the history of retail, delve into its literal meaning, and even take a look at where it might go!

What Is the Definition of Retail?

Retail (ˈriːteɪl, rɪˈteɪl, retail) is a word of Middle English and Anglo-French origin that describes the sale of goods to consumers in small quantities. Retail sales and retail trade can be anything from a corner store to an online website or even a specialty shop selling only one thing, like smartphones or furniture.

Retailers take products from their suppliers, manufacturers, and brand owners and then sell those products directly to customers through physical stores or online transactions (this is where digital transformation comes into play).

While retail is commonly used to refer to a shop or store, it can also be used as a verb to describe the sale of goods and services to consumers in small quantities. In this sense, retail is not just about your local corner shop; it’s an industry that generates billions of dollars annually and employs millions worldwide.

What Are Retail Stores?

Retail is not just about the shop on the corner. Retail is about selling small or large quantities of goods and services to customers, and it can be applied to brick-and-mortar and online businesses. For example, you might have a retail store that sells clothes and shoes, or you could sell greeting cards online through your Etsy shop. You can also use other platforms such as Amazon or eBay to sell items from your home or studio space (though, in this case, it’s still considered eCommerce or e-tailing).

Retailers can be divided into two categories: specialty retailers and department stores.

Specialty retailers focus on selling one type of product line while department stores carry multiple lines under one roof. Think of Macy’s or Nordstrom’s stores which sell lots of different types of things from clothes to perfume — these are department stores. Now think of a Nike or Addidas store where you’ll only find athletic shoes — these are specialty retailers.

What Does Retail Look Like in the Modern World?

One of the most critical aspects of retail is that it has adapted to be relevant in today’s digital world. According to Accenture, a global management consulting company, the percentage of people shopping online grew from 31% in 2011 to 52% by 2018. The same report shows that mobile commerce represents 24% of all e-commerce sales and will continue proliferating over the next three years.

With such a large number of consumers shopping online or using their phones to make purchases, retailers are faced with several challenges. How can we reach our customers when they’re not physically at our stores? How can we convince them to buy something even if they don’t see it first-hand?

The answer is simple: by offering convenience and value through multiple channels, many companies are experiencing newfound retail success. But there are other factors as well. One key point here is personalization. When people shop online, they want an experience tailored specifically for them and their own uses: no one wants generic recommendations based on what others bought before them!

This means having an excellent customer database that lets retailers target specific groups based on their interests and preferences (profiles).

What Is the Supply Chain?

The supply chain is the movement of goods from manufacturers to retail outlets and then finally to the consumers. It includes many different parts and parties, including manufacturers, wholesalers, distributors, retailers, and end-users (you!)

Supply chains are complex systems that involve many different parties. In fact, they can be so complicated that they’re sometimes difficult to control. As a result, they often experience disruptions like delays or sudden changes in demand for products or services — and it happens all the time!

The retail market and world of retail business are deeply intertwined with the idea of the supply chain. Essentially, a major retail chain or retail shop will buy large amounts of product at low prices, often the wholesale price. The retail space will then function as a point of sale that will sell the product at small amounts to the ultimate consumers and markup the prices so they can make money in the profit margins. This is how retail price is decided in almost every online retailing or shopping center, as well as brick and mortar stores.

Conclusion

As you can see, the concept of retail has evolved quite a bit over time. The once-passive idea of retail is now active and dynamic, thanks to the rise of eCommerce and other digital technologies. However, no matter what changes occur in the industry, one thing is sure: it will be interesting to see how retailers continue to evolve as new technologies are developed and new customer behaviors emerge. We’re living in an exciting time for retail!

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Sources:

Retail Definition & Meaning | Dictionary.com

Retail Definition and Meaning | Collins English Dictionary

RETAIL | Cambridge English Dictionary

Kevin Miller is a growth marketer with an extensive background in Search Engine Optimization, paid acquisition and email marketing. He is also an online editor and writer based out of Los Angeles, CA. He studied at Georgetown University, worked at Google and became infatuated with English Grammar and for years has been diving into the language, demystifying the do's and don'ts for all who share the same passion! He can be found online here.