Understanding Retailing Assignment 1

Topics: Retailing, Supply chain management, Large goods vehicle Pages: 16 (6034 words) Published: June 12, 2011
Dan Shahrezaey
Understanding Retailing
Assignment 1
Date of Issue- 10/01/2011
Submission Date-18/02/2011
Tutor-Mike Delaney

Task 1 P1
A retailer is a person that buys goods which are sold in considerable vast quantities. The items are bought from the manufacturers and they are then sold to consumers. The retailer’s bulk buys their items and breaks down into quantities that are deemed suitable for the customers to buy at a larger price than the cost. The retail industry that exists in the UK is huge because in the year 2010 the sales were recorded at being over £293 billion. The reason why this particular industry is important to the British economy is that in 2009, the UK retail sales were well advanced into plus £285 billion and obviously it’s a lot of money and it shows that more than a 1/3 of the spending that is done by the consumers has developed through the shops. The retail sector generates 8% of the Gross Domestic Product of the UK. In 2010 there were 286,680 retail outlets in the UK available. This is further proof that the retail industry is very strong. The retail industry in global aspects has be recognised as being relatively bigger because there are emerging markets like China who have expected a growth in their profits for 2010. However there has been improvement to help the consumers in the USA. However the recent lack of wealth is expected to lower the spending of the consumer. A continent called Asia makes the realisation of having one of the greatest growth prospects for the retailers in 2010 to look upon. In India, garments, fashion accessories, cosmetics and white goods are expected to continue the uptrend of 2009 in 2010 and beyond. In Europe, there are household appliances, which have growth potentials that are considered to be large. There are over 180 million appliances which are 10+ years, and they’re still usable and in perfect condition. The appliances offer a huge amount of potential for the newer energy saving appliances. There are different retailer formats around and they are:

* Hypermarkets
* Convenience stores
* Supermarkets
* Department stores
* Specialty stores
* General stores
* Discount shops
Hypermarkets provide a variety of different items at a low margin and the operating cost is comparatively less than other retail formats. It is a huge supermarket and it is usually located out of town. Convenience stores are stores that sell limited items that are useful for emergencies. They don’t sell too much items but just about enough for a day’s food shopping. They are found in residential areas such as a village. Supermarkets are large grocery stores, which distribute items for home use such as groceries, dairy products and goods for use in such as toiletries. Department stores are a retail establishment that specialize in satisfying a range of the customer's personal and residential goods product needs. They offer the consumer (s) a choice of multiple merchandise lines, at variable price points, and they are formed in all product categories. Department stores sell products that are used for households and they include items such as furniture, toiletries, hardware, sporting goods and jewellery/toys. There are some department stores which are known as discount stores. Specialty stores are small stores that specialize in a specific range of merchandise and subject related items. Most of the stores have a lot of depth in their stock of the item that they are specialized in and they provide a high level of expertise and service. The pricing policy is in a range of medium to high and it depends on the factors such as the type of merchandise but it is whether are operated by an owner or part of a chain operation in which they have an advantage of bulk purchasing and a centralised warehousing system. General stores are stores that carry a simple amount of merchandise that isn’t too over the top. A general store is referred to as a corner shop and they...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Assignment 1 Becoming an effective Leader Essay
  • Unit 2 Assignment 1 Essay
  • Assignment 1 Essay
  • Assignment 1 Understanding performance management Research Paper
  • Assignment 1 Essay
  • Assignment 1 Essay
  • HLTA Assignment 1 Essay
  • assignment brief unit 1 Essay

Become a StudyMode Member

Sign Up - It's Free