WORLD OF RETAILING

RETAIL
Its sounds very familiar right to us,plus we do live in retailing and some time we also did it.
So,today i'm going introduces to you what is the world of retailing,how does this world operated and what kind of channel does it involved.


What is retailing???
Retailing is a set of business activities that adds value to the product or services sold to the consumers for their own use or family use.

From the meaning above,we can conclude that retail -ing is an activities in busines.Therefore for any words that ended with -ing means the things are in actions .In english we call as gerunds words.

Now we move to the next which is Retailer.As you can see below,there is a Mc Donald building right.So Mc Donald is listed under one the retailer.Mc Donald is under fast-foods retailer as you can have you foods within 5 minutes after order.

The most stunning Mc Donald building in Malaysia.

So retailer means a business that sells a products or services to consumer for their personal or family use.

Don't confused with retailing as it involves with activities while retailer is represent the seller itself.

SCRAMBLED MERCHANDISING

Scrambled Merchandising refers to a practice by wholesalers and retailers that carry an increasingly wider assortment of merchandise. It occurs when a retailer adds goods and services that are unrelated to each other and to the firm's original business.

It used to be that you went to a drug store cosmetics, hardware store for hardware, a pet store for pet food and a grocery store for groceries. Now you can buy groceries at the drug store, find pet food at the hardware store and get anything you want at Tesco or Aeon.

Some of the retailer that available in Aeon stores

However there is advantages and disadvantage of scrambled merchandising:

Advantaged:

• One stop shopping center
• High-gross profits
• Merchandise management easier

Disadvantaged:

• Least of depth &width
• Limited quantity of stock
• High traffic of customers

RETAILER LIFE CYCLE

The retail life cycle concept states that retail institutions--like the goods and services they sell--pass through identifiable life stages: introduction (early growth), growth (accelerated development), maturity, and decline. 

Introduction Stage

As the name implies, the introduction is the beginning stage of any business, characterized by innovation and industry expansion.Introductory stage stores should be prepared for low profits due to high development costs

Growth Phase

 As you grow, your profits increase and customers rave about your brand.The challenge in this stage is to keep innovating enough so you have something new and exciting for your customers each time they visit.

Maturity Phase

Once you are fully established in this stage, the firm will have a lot of competition and the  store defines it industry instead of feeling new and different. Competition even may increase to the point where the industry overexpands, leading to declining profits and reduced customer loyalty. As this happens, prices begin to drop and your competitors try to lure back customers with great deals

Decline

If you are unable to innovate sufficiently to keep your business new and fresh and enters the last phase of the retail life cycle: decline. At this point, a firm business may seem out of date and boring to customers. Other retailers have caught their attention, and it's difficult to lure those customers back. 

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