Retailing provides customer value in the form of various utilities: time, place possession, and form. Economically, retailing is important in terms of the people employed and money exchanged in retail sales.
Retailing outlets can be classified along several dimensions: the form of ownership, level of service, or merchandise line.
There are several forms of ownership: independent, chain, retailer sponsored cooperative, wholesaler-sponsored chain or franchise.
Stores vary in the level of service they provide. Three levels are self-serviced, limited service, or full service.
Retail outlets vary in terms of the breadth and depth of their merchandise lines. Breadth refers to the number of different items carried, and depth refers to the assortment of each item offered.
Nonstore retailing includes automatic vending, direct mail and catalogs, television home shopping, online retailing, telemarketing, and direct selling.
Retailing strategy is based on the retailing mix, consisting of goods and services, physical distribution, and communication formats.
In retail pricing, retailers must decide on the markup, markdown, and timing for the markdown. Off-price retailers offer brand-name merchandise at lower than regular prices. This retailing form includes warehouse clubs, outlet stores, and single-price retailers.
Retail store location is an important retail mix decision. The common alternatives are the central business district, a regional shopping center, a community shopping center, or a strip location. A variation of the strip location is the power center, which is a strip location with multiple national anchor stores and a supermarket.
Multichannel retailers use a combination of store and nonstore formats.
New retailing forms are explained by the wheel of retailing. Stores enter as low-status, low-margin outlets. Over time, they add services and raise margins, which allows a new form of low-status, low-margin retailing outlet to enter.
Like products, retail outlets have a life cycle consisting of four states: early growth, accelerated development, maturity, and decline.
Many retailers depend on the numerous types of intermediaries that engage in wholesaling activities.
The main difference between the various types of wholesales lies in whether or not they take title to the items they sell.
