Retail Trade Part 1

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You need a variety of goods for use in our day-to-day life. Where do you get all those goods? Are they all available in your local market? If not, then you must be buying those goods from the markets of the nearby town or city. Generally, to buy goods as per your own choice you move from shop to shop and market to market. You may think why all these goods are not available in a single shop? Why are these goods not available at our doorstep? There are certain shops from where you can buy a variety of goods of different types as per your convenience. Goods of our choice can also be made available at your doorstep.

Meaning of Retail Trade

Small shopkeepers, who sell goods directly to the consumers, are called retailers. Pedlars, hawkers, one-price-shop or petty shopkeepers are all retailers. A retailer is the last link in the chain of intermediaries. He is an intermediary between the wholesaler and the ultimate consumer. He purchases from the wholesaler and sells in very small quantities to the consumers. He needs capital smaller than the wholesaler and usually, carries trade on cash basis. He does not specialise in any commodity and usually carries a large variety of goods in his stock. His activities are generally confined to the locality in which his shop is situated.

Objectives

Objectives of Retail Trade

Objectives of Retail Trade

Objectives of Retail Trade

Types of Retail Trade

Retailers are small shopkeepers trading in the nearby locality. However, starting from hawkers and street traders, to super bazaars, departmental stores and Multiple shops, all undertake retail-trading business in our country. We can classify this retailing Business into two categories.

  • Small-scale retail trade;

  • Large-scale retail trade.