What is Retail Business?
Have you ever had a great concept for a product or clothing line? You might want to turn that idea into a business. That type of business would be referred to as retail business. Half the battle is creating the best customer experience, but first you have to get your business set up. Let’s dive into what makes retail business what it is.
What is Retail Business?
Really, What is Retail Business?
Retail business occurs when a business sells a product or service directly to an individual consumer a.k.a. the buyer for their own use. This can occur through a multitude of different sales channels, different types of retail stores, and for different products or services.
Types of Retail Business
The main four categories of retail business are as follows:
Hard lines - Items that are long lasting such as cars and appliances.
Soft goods and consumables - Items that are shorter lasting and are used frequently such as clothes and toiletries.
Food - Edibles such as meat, produce, baked goods.
Art - Types of fine art such as books, paintings, and musical instruments.
Some of the most popular types of retail stores are as follows:
Department Stores - a large store stocking a variety of goods in different departments.
Big Box Stores - a physically large retail establishment, usually part of a chain of stores.
Discount Stores - A store that sells goods at less than the normal retail price.
Warehouse Stores - A large store that sells large quantities of products at a very low price.
Mom and pop Stores - a small, family owned or independent business.
E-tailers - a retailer that primarily uses the internet as a medium for customers to purchase their goods or services.
The Supply Chain
A supply chain is the processes utilized to ensure the product or service reaches the customer from beginning to end. Generally, the process is made up of four key players. This process begins with the manufacturers who produce the goods. The wholesalers or distributors who buy from the manufacturers then resell to retailers. Finally the retailers who buy from the wholesalers, sell to the consumer. At every step of this process, there’s a markup and profit margin built into the purchase.
Points of Sale
Point of sale was originally when a consumer brings their product up to a cash register and pays for the product. In today’s world, this has transformed to a multitude of different types of points of sale. These can vary from self checkouts, to using a card, your mobile phone, purchasing through a computer on an online shop, and more.
Steps to Setup Your Retail Business
Create a retail business plan
Determine your niche & products
Conduct market research
Choose a legal structure
Organize your finances & secure funding
Choose a storefront location (offline and/or online)
Design your store layout & product positioning
Establish your points of sale & payment processing
Establish a marketing plan & begin implementation
Plan your grand opening & launch your retail business!