retailer


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Related to retailer: wholesaler

Retailer

A company that sells goods or services to consumers, rather than to producers or intermediaries. For example, a clothing retailer sells to people who will (most likely) wear the clothes. Retailers generally do not sell their products to other stores that will resell them. A retailer contrasts with a wholesaler.

retailer

a business which stocks a particular type of product (such as a shoe shop) or an extensive range of products (such as a DEPARTMENT STORE) for sale to consumers. Retailers operate at the final end of a DISTRIBUTION CHANNEL for a product or products, which also involves MANUFACTURERS and WHOLESALERS.

Although some retailers (for example, butchers) are involved in the preparation and packaging of products before their final sale and provide personal service, most retailers are engaged in selling prepacked, complete items on a self-service basis. Formerly, in the UK and elsewhere, retailers played a relatively passive role in the distribution channel, merely providing a convenient point of sale for manufacturers’

retailer

a business that stocks a particular type of product (for example, a shoe shop) or an extensive range of products (for example, a DEPARTMENT STORE) for sale to consumers. Retailers operate at the final end of a DISTRIBUTION CHANNEL for a product or products that also involves PRODUCERS and WHOLESALERS.

Although some retailers are involved in the preparation and packaging of products before their final sale (for example, butchers), most retailers are engaged in selling pre-packed, complete items. Formerly in the UK and elsewhere, retailers played a relatively ‘passive’ role in the distribution channel, merely providing a convenient point of sale for manufacturers’ products (in many trades, at prices controlled by the manufacturers through RESALE PRICE MAINTENANCE (RPM). However, with the emergence of large CHAIN STORE retailers (SUPERMARKETS, DO-IT-YOURSELF groups) the balance of power in the channel has switched towards retailers. Retailers have been able to use their BULK-BUYING power to obtain substantial price discounts from manufacturers, and this, together with the demise of RPM, has given retailers greater discretion in the use of price as a competitive weapon (see DISCOUNT STORE). Moreover, the larger retailer groups have established an extensive ‘OWN-LABEL BRAND business in direct competition with manufacturers’ brands, which has also increased their MARKETING MIX opportunities to compete against other retailers. See SPECIALIST SHOP, MAIL ORDER.

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