Prepare for your exams
Get points
Guidelines and tips

Prepare for your exams

Study with the several resources on Docsity

Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips

Sell on Docsity

Log in Sign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search Store documents

The best documents sold by students who completed their studies

Search through all study resources

Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents

20 Points

For each uploaded document

Answer questions

5 Points

For each given answer (max 1 per day)

All the ways to get free points

Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

University Rankings

Discover the best universities in your country according to Docsity users

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

From our blog

Exams and Study

Go to the blog

definition_of_retail_business, Study notes of Business Economics

Universitas Dian Nuswantoro (UDN)Business Economics

The meaning of retail, its history, and the difference between retail and wholesale. It also describes the types of retail businesses based on products sold, ownership, and sales location. examples of different types of retail stores such as department stores, grocery stores, warehouse retailers, specialty retailers, convenience retailers, mobile retailers, and internet retailers.

Typology: Study notes

2021/2022

Available from 02/16/2023

tsaltsaawaniarzakia 🇮🇩

11 documents

1 / 6

This page cannot be seen from the preview

Don't miss anything!

Definition of Retail Business: Types, Goals, and How it Works

What is Retail?

If defined in general, the meaning of retail is a sale of products or services from a business to

consumers to be used or consumed by themselves. In terms of business, the meaning of retail

is an effort to market goods or services that are carried out in retail or units directly to

consumers for their personal and household needs. So the purchase they made was not for

resale.

This retail business is also often referred to as a retailer or retailer. Where the number of

goods sold is usually in small quantities or units. So that if a factory sells its goods in large

quantities to other business owners. Then these conditions are not included in retail sales

activities. In the implementation process, each retail business owner will buy products or

services in large quantities from producers which can then be resold to consumers directly in

the form of fewer units. The transaction process will then be explained in more detail in the

product distribution supply chain.

Understanding Retail According to Experts

To understand the meaning of retail in more detail, we can take from various opinions

expressed by experts such as the following:

1. Definition of Retail According to Barry R. Berman and Joel R. Evans

They both explained that the real meaning of retail is a business activity that seeks to market

goods and services to final-level consumers for personal use and for household needs.

2. Definition of Retail According to Philip Kotler

Here, Kotler explains the meaning of retail, which is a retail sales process that includes all

activities that involve the sale of goods and services to final-level consumers to be used for

their own personal needs.

3. Understanding Retail According to David Gilbert

Gilbert explained that retail is all business ventures that exert all the expertise in marketing

products or services directly in order to satisfy consumers at the final level based on the

organization of selling goods and services as the distribution center.

Partial preview of the text

Download definition_of_retail_business and more Study notes Business Economics in PDF only on Docsity!

Definition of Retail Business: Types, Goals, and How it Works What is Retail? If defined in general, the meaning of retail is a sale of products or services from a business to consumers to be used or consumed by themselves. In terms of business, the meaning of retail is an effort to market goods or services that are carried out in retail or units directly to consumers for their personal and household needs. So the purchase they made was not for resale. This retail business is also often referred to as a retailer or retailer. Where the number of goods sold is usually in small quantities or units. So that if a factory sells its goods in large quantities to other business owners. Then these conditions are not included in retail sales activities. In the implementation process, each retail business owner will buy products or services in large quantities from producers which can then be resold to consumers directly in the form of fewer units. The transaction process will then be explained in more detail in the product distribution supply chain. Understanding Retail According to Experts To understand the meaning of retail in more detail, we can take from various opinions expressed by experts such as the following:

Definition of Retail According to Barry R. Berman and Joel R. Evans They both explained that the real meaning of retail is a business activity that seeks to market goods and services to final-level consumers for personal use and for household needs.
Definition of Retail According to Philip Kotler Here, Kotler explains the meaning of retail, which is a retail sales process that includes all activities that involve the sale of goods and services to final-level consumers to be used for their own personal needs.
Understanding Retail According to David Gilbert Gilbert explained that retail is all business ventures that exert all the expertise in marketing products or services directly in order to satisfy consumers at the final level based on the organization of selling goods and services as the distribution center.

Understanding Retail According to Michael Levy and Barton A. Weitz The two experts agreed that the meaning of retail is a series of business activities carried out to increase the use value of a product of goods and services which are then resold to consumers. So that it can be used or consumed personally or for household needs. History of Retail Development in Indonesia The retail business was present in Indonesia in the 1960s. Although in this world retail business has been developing in major cities in the United States since the 1860s. In Indonesia, retail stores first appeared on April 23, 1963 in the Sarinah Jalan building. M.H. Thamrin, Jakarta. The idea of building the store was initiated by President Soekarno who at that time adopted the concept of sales from Japanese countries and Western countries. Then when entering the 1990s, the development of retail stores began to increase in Indonesia. Since then, many people have started to set up retail businesses by providing various superior products from various countries in the world. The retail business has also become one of the new needs for the general public to meet their daily needs and lifestyle. Along with the times, retail stores continue to experience development and innovation. Now, there are many retail stores with small to large scales. So that people find it easier to obtain the goods or products they need. The existence of retail stores also takes part in the development of the Indonesian economy. Difference between Retail and Wholesale Many think that retail and wholesale are the same two things, but in reality they are very different. Where wholesalers usually sell goods in large quantities without worrying about various aspects of retail expected by end-level consumers, such as merchandise and others. Wholesalers also do not deal directly with the final level of consumers. Instead, they will sell all the goods provided at retail stores only. We will very rarely find wholesalers who sell directly the goods they provide to end-level consumers. Because, they will only sell it to retail stores so that the store can resell to end-level consumers. Generally, wholesalers will also sell products or goods provided in large quantities. Where this can allow them to sell it to retail stores at low prices. Compared to retail stores selling such products back with small quantities and higher prices.

businesses will also provide additional services for various retail transactions. Starting from gift wrapping, personal shopping consultations, tempo payments, electricity bills, and others. It aims to provide a consumer experience and improve existing retail services. Retail Function The following are some of the functions of the retail business in the distribution cycle of marketing goods, namely:

Make it Easier for Consumers to Get the Products They Need With the retail business, it is easier for end-level consumers to get the products they need. Without a retail business, it will be very difficult for final-level consumers to meet their needs. Because, they have to buy it to the manufacturer or wholesaler directly and automatically must be in large quantities.
Bringing Profits to Manufacturers and Wholesalers In addition to making it easier for end-level consumers to obtain their needs. The retail business is also very beneficial for producers and wholesalers. This is because retail will bring financial benefits to producers and wholesalers. The retail party will usually shop or stock goods in large quantities from the wholesaler. Then the wholesaler will take all the goods they provide from the manufacturer. The funds they get can later be used for capital and reused to produce goods.
Has an Important Role in Promoting Products Directly Retailers who have purchased products from manufacturers or wholesalers will usually promote the products directly to consumers using various means. These activities will certainly be very useful and able to increase the trend of products produced by the manufacturer.
Can Offer Various Types of Goods at Varied Prices Generally, retailers will buy various types of goods from various different manufacturers. The prices they offer will also vary. This will later provide market variations in line with the increasing sense of satisfaction from consumers. Types of Retail Are

The types of retail businesses are distinguished by the products sold, ownership, and also the location of sale. Here's the full explanation;

Based on Products Sold When viewed from the products they sell, the retail business will be divided into three types, namely retail products that provide products or goods, retail that provides services or services, and types of non-store retail that utilize a medium to market the products they provide. For example, retail businesses in the form of toy stores and electronics stores that market fewer products than the center. As for examples of retail businesses that provide services or services, namely park maintenance services, vehicle repairs, babysitters, and driver services. Meanwhile, for non-retail, vending machines and various kinds of online stores are incorporated into the e-commerce system.
By Ownership There are three types of retail based on ownership. The first is independent retail, business groups, and franchises. For independent retail, it usually runs independently without relying on other parties. Examples of independent retail are grocery stores, shophouses, stalls, and others. As for franchise retail or commonly known as a franchise, it is a type of retail that markets similar products and usually consists of central companies and derivative companies. Then the last one is the retail business group, this is a group of retail companies that are interrelated or connected in one management. For example, supermarkets and department stores.
Based on Sales Location If based on the location of sale, this type of retail has direct access to go directly to public roads. Examples of this type of retail are retail strip malls or other commercial land. In addition, there are also shopping or business centers formed from groups of retail entrepreneurs who provide products and services in one building and the same area. Examples of Types of Retail Stores The following are some examples of types of retail stores where final-level consumers can buy goods or products for daily needs and meet their lifestyle.