Also found in: Dictionary, Acronyms.
retained profitproducts (in many trades at prices controlled by the manufacturers through RESALE PRICE MAINTENANCE). 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 to manufacturers' brands, which has also increased their MARKETING MIX opportunities to compete against other retailers. See SPECIALIST SHOP, CATEGORY DISCOUNTER, WAREHOUSE CLUB, MAIL ORDER, FACTORY OUTLET.
undistributed profitany after-tax PROFIT that is reinvested (ploughed back) in the firm rather than being paid out to the owners of the company in DIVIDENDS. Such retained earnings form a valuable source of capital to be invested in additional FIXED ASSETS and CURRENT ASSETS. They serve to swell the value of the company to the shareholders and increase SHAREHOLDERS' CAPITAL EMPLOYED by adding to revenue RESERVES, See also RETENTIONS RATIO.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson