Unit 29: Understanding Retailing
By Rais Mauthoor
Organisation, structure and distribution
Introduction
This report will describe the structure and organisation of the retail sector and it will
explain the process of distributing goods through different channels from the
manufacturer to the customer. Afterwards, this assignment will compare the function of
formats and locations in retailing. This report will also compare the methods used to
distribute products and services and it will evaluate the distribution systems in delivering
goods and services for a selected organisation.
P1 Describe the structure and organisation of the retail
sector
Organisation
Definition of retailing
Retailing incorporates the multiple activities and processes that relates to the selling of
merchandises to customers. Businesses retail products to customers so that they can
meet demand and possibly more importantly as a way of earning a profit. A buyer may
purchase a product at a certain price from a retailer and the retailer would hope to sell
as much of their stock as possible to generate a positive income. Retailers cooperate
with suppliers and form interdependency to ensure that goods are delivered to their
stores appropriately so that they can be merchandised. Retail operations are typically
conducted on local high streets of towns in convenient locations to facilitate customers
making contact.
Emerging store types
There are some store types that have become popular and have recently emerged. A
shopping village is a group of retail outlets surrounding each other with a common
interest of facilitating sales. It is also designed to look like a village. Factory shops are
leased by a nearby factory to sell manufactured goods that are either damaged or
outdated. These goods are typically discounted. Teleshopping involves television to
showcase and promote products. Customers can contact the company selling the
product by telephone or by browsing their website.
Hybrid stores
A hybrid store incorporates two different retail outlets in one building to offer two
different ranges of products or services to customers. Hybrid stores give customers
additional incentive to visit the retail outlet because they can experience more at a
single location.
Online and physical stores
By Rais Mauthoor
Organisation, structure and distribution
Introduction
This report will describe the structure and organisation of the retail sector and it will
explain the process of distributing goods through different channels from the
manufacturer to the customer. Afterwards, this assignment will compare the function of
formats and locations in retailing. This report will also compare the methods used to
distribute products and services and it will evaluate the distribution systems in delivering
goods and services for a selected organisation.
P1 Describe the structure and organisation of the retail
sector
Organisation
Definition of retailing
Retailing incorporates the multiple activities and processes that relates to the selling of
merchandises to customers. Businesses retail products to customers so that they can
meet demand and possibly more importantly as a way of earning a profit. A buyer may
purchase a product at a certain price from a retailer and the retailer would hope to sell
as much of their stock as possible to generate a positive income. Retailers cooperate
with suppliers and form interdependency to ensure that goods are delivered to their
stores appropriately so that they can be merchandised. Retail operations are typically
conducted on local high streets of towns in convenient locations to facilitate customers
making contact.
Emerging store types
There are some store types that have become popular and have recently emerged. A
shopping village is a group of retail outlets surrounding each other with a common
interest of facilitating sales. It is also designed to look like a village. Factory shops are
leased by a nearby factory to sell manufactured goods that are either damaged or
outdated. These goods are typically discounted. Teleshopping involves television to
showcase and promote products. Customers can contact the company selling the
product by telephone or by browsing their website.
Hybrid stores
A hybrid store incorporates two different retail outlets in one building to offer two
different ranges of products or services to customers. Hybrid stores give customers
additional incentive to visit the retail outlet because they can experience more at a
single location.
Online and physical stores
