Introduction to Retailing

Hi, everyone. This should have been one of the first articles I have written. It may seem a little elementary to you seasoned retail professionals, but I think it will be very helpful to those visitors that are interested in learning more about retail and are considering retailing as a career choice. Happy reading!

What is retailing?

Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at prices that are competitive and affordable.

How large of an industry is retail?

In 1999, retailing accounted for $3 trillion in annual sales in the United States alone. There are more than 1.4 million retail establishments in the United States. The retail industry currently employs over 20 million workers, or 1 in 5 American workers. According to the United States Department of Labor, retail employment is expected to increase to 24 million workers by the year 2005. Retail establishments provide more jobs to U.S. workers than manufacturers. Lets take a look the most common types of retail establishments in the United States.

Types of Retail Operations

Department Store:

This type of operation is usually a single large store that is divided in different "departments". The selection in these type of retail organizations include men's, women's, and children's clothing. Jewelry and other types of accessories are also sold. Saks Fifth Avenue, Macys, and Federated Department Stores are examples of leading department store retail organizations.

Specialty Store:

This is a retail organization that concentrates on a limited range of merchandise such as jewelry, furniture, art, etc. Bed, Bath, and Beyond and PetsMart are example of specialty stores.

Discount/Mass Merchandisers

This is a retail organization that sells a great variety of merchandise. Product selection in these stores include hardware, clothing, home furnishings, etc. These huge retail organizations are often able to sell items at a substantial discount because of economies of scale. Examples of these retailers are Target and Wal-mart.

Warehouse/Wholesale Club

This is primarily a self-service retailer which offers nationally advertised brand name goods at wholesale prices to businesses and group members only. The warehouse environment often allows them to offer substantial discounts. Membership prices are usually very low relative to the savings offered. Sam's Club is an example of this type of retailer.

Factory Outlet

This type of retailer usually uses a factory or outlet store location to sell clearance, excess stock, or return merchandise at sharply discounted prices.

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