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It involves the sale of goods from a single point (malls, markets, department stores etc) directly
to the consumer in small quantities for his end use.

In a layman¶s language, retailing is nothing but transaction of goods between the seller and the
end user as a single unit (piece) or in small quantities to satisfy the needs of the individual and
for his direct consumption.

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Tim wanted to purchase a mobile handset. He went to the nearby store and purchased one for
himself.

In the above case, Tim is the buyer who went to a fixed location (in this case the nearby
store).He purchased a mobile handset (Quantity - One) to be used by him.

The store from where Tim purchased the handset must have shown him several options for him
to select one according to his budget and need.

From where do you think the store owner (also called the retailer) purchased all the handsets?

The retailers purchase goods in bulk quantities (huge numbers) to be sold to the end-users either
directly from the manufacturers or through a wholesaler.

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OY ‘xchange of surplus produce of a farmer/producer with different goods/products.
OY phen a producer who had a surplus could not find another producer with suitable
products to swap, he may have allowed others to owe him goods. Thus early credit terms
would have been developed. This would have led to symbolic representations of such
debts in the form of valuable items (such as gemstones or beads), and eventually money.

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OY The Retail Trade is rooted in two groups, the peddlers and producers.
OY ðeddlers would purchase any goods that they thought they could sell for a profit.
OY ðroducers were interested in selling goods that they had produced.
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OY Over time, both producers and merchants, would regularly take their goods to one selling
place in the centre of the community. Thus, regular markets appeared.
OY ‘ventually, markets would become permanent fixtures i.e. shops. These shops along with
the logistics required to get the goods to them.
OY This marked the emergence of Retail Trade.

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OY phen individuals or groups left their community and settled elsewhere, some missed
foodstuffs and other goods that were only available in their birthplace.
OY They arranged for some of these goods to be sent to them.
OY Others in their newly adopted community enjoyed these goods and demand grew.
OY _imilarly, new settlers discovered goods in their new surroundings that they dispatched
back to their birthplace, and once again, demand grew.
OY This soon turned into a regular trade. 
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OY It is likely that, as markets became more permanent fixtures they evolved into shops.
OY For some shopkeepers, it made sense to obtain extra stock and open up another shop,
most probably operated by another family member.
OY This would recover business from peddlers and create new business and the greater
volume would allow the shopkeeper to strike a better deal with suppliers. Thus the retail
chain would have started. 



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OY ãommonly known as ³convenience store´, over time, has increasingly taken on specialist
stores.
OY These provide a broad mix of products to the consumers.
OY Ês the popularity of general stores has grown, so has their size. This combined with the
advent of _elf-_ervice has lead to the _upermarket, or _uperstore.


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OY Êlthough retail chains would have been mostly run by families, as some chains grew,
they would have needed to employ people from outside of their family. 
OY This was a limiting factor as there would have been a limit to the amount of trusted non
family members available to help run the chain. 
OY Ênother, even more definite limiting factor was the distance the furthest shop would have
been from the original shop. The greater the distance, the more time and effort would
have been needed to effectively manage outpost shops and to service them with goods. 
OY There was, therefore, a natural barrier to expansion. That was the case until transport and
communications became faster and more reliable. 
OY phen this happened towards the end of the 19th century, chains became much bigger and
more widespread. 
OY any of these businesses became more structured and formalized, leading to the retail
chain that we see today.




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OY odern retailing has entered India in form of malls and huge complexes offering
shopping, entertainment, leisure to the consumer as the retailers experiment with a variety
of formats
OY However, kiranas still continue to score over modern formats mostly due to the
convenience factor i.e. near to their house.
OY This organized segment typically comprises of a large number of retailers, greater
enforcement of taxation mechanisms and better labour law monitoring system.
OY It's no longer about just stocking and selling but about efficient supply chain
management, developing vendor relationship quality customer service, efficient
merchandising and even the labour class is also in the working process timely
promotional campaigns.
OY In the coming years it can be said that the hypermarket route will emerge as the most
preferred format for international retailers stepping into the country.

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" Êpproximately 60 per cent of Indian population below 30
years of age.

OY + " Increasing instances of Double Incomes in most families coupled with
the rise in spending power.

OY ! 
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" Increasing use of credit cards for categories relating to Êpparel,
ãonsumer Durable Goods, Food and Grocery etc.

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" increased urbanization has led to higher customer density areas thus
enabling retailers to use lesser number of stores to target the same number of customers.
Êggregation of demand that occurs due to urbanization helps a retailer in reaping the
economies of scale.

OY '
 
    
" with increased automobile penetration and an
overall improvement in the transportation infrastructure, covering distances has become
easier than before. Now a customer can travel miles to reach a particular shop, if he or
she sees value in shopping from a particular location.
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  " ãonsumers are increasingly becoming more
demanding in terms of the overall experience at a retail outlet.