Saturday, 26 March 2022

Types of Retail trade

 The business of retailers is engaged in the sales of goods and services directly to the ultimate consumers. Normally, the retailers purchase goods in bulk from the wholesalers and sell them in small quantities to directly consumers. The retailer is the final stage of the distribution chain where the goods are transferred from the hand of the producer or wholesalers to the final users. There are many different ways of selling goods. The sizes of retailers are depending on the number of sales. They may be categorized on basis of ownership then it can be sole trader, partnership, cooperative store, and many more. But mainly retailers are classified into two types.  

  1. Internal retailer Fixed retailer

Here in this guide, we will discuss both types of the retailer in detail. 

Internal retailer 

Internal retailers are trades that do not have a fixed place for business operation. They always keep moving with their goods from one place to another for sales of goods. 

Internal retailers do not have a standard place to sell products but they keep moving their stoles for delivering the product to the final consumer. There are some features of such internal retailers listed below.

  • They are small trade operators with limited resources.
  • They normally deal in daily use products and perishable items such as vegetables, fruits, toiletry products, and many more. 
  • Internal retailers emphasize convenience to the customer by making products available at the doorstep of consumers.
  • Since they do not have fix place for the operating business, they keep a limited inventory of merchandise for logistic purposes.
  • Internal retailers have limited capital resources for the operation of the business. 

There are several types of distinct internal retailers operating in India which are following.

Hawkers and peddlers 

This type of retailer is one of the oldest forms of retailer in the marketplace who do not lose their utility even during the Morden era. They carry their goods on a bicycle, hand carts, rickshaw, on the head, and many more. They keep moving place to place to sell their merchandise and constantly move around to reach maximum customers. Peddlers and hawkers generally sell non-standardized and low-quality products such as toys, carpets, fabrics, snacks and ice cream, vegetables, fruits, and many more. These hawkers do not have fixed price for their products, it fluctuates every day according to circumstances. 

Cheap jacks 

Cheap jacks are different from hawkers. They have an independent shop, but the shop is not a permanent one. They keep moving for better opportunities and potential consumers. But the frequency of changing location is comparatively low from the peddlers. 

Market traders 

Market traders are the small retailers who open their shop at a different location for fixed dates for example every Saturday, alternate days, and many more. These retailers mostly deal in one type of product like fabrics, ready-made garments, toys, crockery, and many more. The market trades target low-income groups for sell of products and deal in low prices consumers items of daily use.

Street traders 

Street traders are also known as pavement vendors. They are commonly found at a place where a huge floating population likes railway station, cinema, near famous hotels, and many more. They sell common use of products such as station items, travel items, newspapers and magazines, eatable items, and many more.

Fixed shop retailers  

This is the most commonly seen retailer in the marketplace. These are retailers who maintain permanent shops to sell their merchandise in the market. They do not change their location serve to consumers. There are some of the other characteristics of such traders. 

  • Fixed shop retailers have large resources and operate on large-scale businesses. The sizes of retailers' shops depend on the type of store. 
  • They provide a large variety of products to consumers with good customer service. 
  • These retailers have great credibility and are more trusted by consumers and manufacturers and wholesalers. 

There are many types of fixed shop retailers. 

General stores 

General stores are the most common stores found in the local market of any nation. These shops are carrying a variety of products to satisfy the day-to-day needs of the consumers near the store. The most common advantage of these stores is in terms of convenience to consumers, they offer credit facilities and home delivery to consumers.

Specialty shops 

These stores are very popular in urban areas. Rather than selling a variety of products, they focus on the sales of one line of products for example mens wear, ladies' garments, toys, school uniform, college books, and many more. These stores are commonly located in the central place of the market for attracting a large number of consumers. They can offer a variety of products to consumers for a selection of goods. 

Street stalls 

These are small retailers who set up their stalls on streets but their establishments are permanent still. They do not sift their stall very often. These types of stalls are located where the flow of traffic-heavy. They target the floating consumers and deal mainly in the cheap quality of products like hosiery products, toys, cigarettes, and local drinks, so on. 

Second-hand stores

These types of stores only deal in second-hand and used items like books, clothes, automobiles, furniture, and other household things. Such stores are known for stocking rare objects of historical value and antique items which are sold at heavy prices to people who have a special interest in such antiques.      




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