Retailing

Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy.
Shops may be on residential streets, shopping streets with few or no houses, or in a shopping center or mall, but are mostly found in the central business district. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. In the U.S., retailers often provided boardwalks in front of their stores to protect customers from the mud. Online retailing, also known as e-commerce is the latest form of non-shop retailing (cf. mail order).
Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.
The world economy is going through a tough phase and it has affected every industries including retail industry. Whether it’s organized retailing or unorganized, both are facing downfall due to rise in prices as inflation is par above 11 %. Many of the world’s largest companies have had a global presence. Companies are reducing their overhead costs. As business is expanding and corporate are entering into new potential markets of the world, they are facing problems too with respect to their way of operations. Technological and communications advances in the last 50 years have had a profound effect on the way that consumers act and companies operate. In the past, consumers, businesses and their employees primarily lived and made decisions on either a local or regional basis. Today and into the future, the world will have fewer and fewer boundaries to constrain businesses, cultures, or consumer demands.
Global retailing is experiencing an explosive modernization as investment rushes into developing markets, retail ambitions now stretch worldwide. Modern retail grew between 25 to 30 % in India and 13 % in China and Russia both in recent years. As the market matures in US and UK like developed countries, more retailers are looking for new growth opportunities.
A T Kearney developed the Global Retail development index (GRDI), it identifies windows of opportunities to help retailers making strategic investments in potentially strong, exciting markets. India, China and Russia continue to top the index. Walmart, Marks & spencer, Starbucks etc. all have plans for entering into India and other developing countries.