1.

0 OVERVIEW OF
RETAILING
1.1.1 Define retailing and its roles
1.1.1 Define retailing
• Retailing is the set of business activities that
adds value to products and services sold to
consumers for their personal or family use.
• The word retail is derived from the French
word retailer, meaning to cut a piece off or
break bulk.
RETAILING
ROLES
• In general, It is responsible for
matching individual demands of
the consumer with supplies of all
the manufacturers. The word
‘retail’ is derived from the French
word retailer, meaning ‘to cut a
piece off or ‘to break bulk’.

This Photo by Unknown Author is licensed under CC BY-SA-NC

1.1.2 ROLES OF RETAILERS
IN SUPPLY CHAIN

• A retailer is a business that sells

products and/or services to
consumers for their personal or
family use. Retailers typically buy
products from wholesalers
and/or manufacturers and resell
them to consumers.
This Photo by Unknown Author is licensed under CC BY-SA-NC
Roles of retailers in
supply chain are as
below:
a. Providing an
assortment of
products and
services
b. Breaking bulk
c. Holding inventory
d. Providing services
e. Channel of This Photo by Unknown Author is licensed under CC BY-SA-NC

Communication
Providing an
assortment of
products and services
• Offering an assortment
enables customers to
choose from a wide
selection of products,
brands, sizes, and prices
at one location.
Manufacturers specialize
in producing specific types
of products.
Breaking bulk
• To reduce transportation
costs, manufacturers and
wholesalers typically ship
cases of frozen dinners or
cartons of blouses to
retailers. Then retailers do
the breaking bulk which it
is an activity where
retailers offer the products
in smaller quantities
 Holding inventory
• A major function of retailers is to
keep inventory so that products
will be available when consumers
wants them.
• Thus, as consumers we can keep
only a small inventory of products
at home because we know retailers
will have the products available
when we need more.
Providing services

• Retailers provide services that

make it easier for customers to
buy and use products. For
example, retailers offer credit
so that consumers can have a
product now and pay for it
later.
.
• Manufacturer --- Wholesaler---- Retailer --
--- Consumer
 Channel of
Communication
• Retailers also act as the
channel of communication
and information between the
wholesalers or suppliers and
the consumers.
• From advertisements,
salespeople, and display,
shoppers learn about the
characteristics and features of
a product or services offered.