Retail refers to the sale of goods and services to consumers for their use. Retail environments can include physical stores, online stores or mobile stores, and retailers can range from independent businesses to large departments and iconic brands.
In terms of product acquisition, retailers typically purchase or source goods from manufacturers, other retailers and wholesalers, such as Pound Wholesale, in big quantities and distribute to the general public in small quantities to generate profit and revenue. In addition to products, retailers can provide other services like financing solutions, delivery and product illustrations.
An integral aspect of the economy, retail has a direct impact on employment, GDP and tax revenue. Retail also has an indirect impact on investment, the supply chain or products and general consumer spending. Retail is often a key indicator of economic health, signifying that consumers are spending the money that results in economic growth.
What is a Retailer?
A retailer can operate in a variety of ways, from brick-and-mortar shops and online stores to catalogue stores and direct-to-consumer retailers.
Depending on their product, retailers can operate via different channels. For example, an online retailer can utilise e-commerce platforms such as Shopify, Magento and WooCommerce (WordPress), or social media platforms such as Facebook, Instagram and TikTok.
Types of Retailers
There are many different types of retailers including;
- Supermarkets – Asda, Tesco & Aldi
- Department Stores – Harrods, Selfridges & John Lewis
- Specialty Stores – Food & drink, book shops & music stores
- Convenience Shops – Local shops & discount stores
- Online Retailers – Amazon and eBay
- Mobile Retailers – Shopify, WooCommerce, Square
Retail Online Vs In-Store
Both online retail and in-store shops have numerous advantages and disadvantages, and an organisation’s products and range will likely determine the most appropriate channel and suitability.
According to statistics, online retail sales accounted for 26.5% of total retail sales in the UK in 2022, and it is expected to rise to around 29.2% in 2023.
Online Retail
The biggest advantage of online retailing is convenience. With online retail and e-commerce stores, shoppers can place orders from anywhere in the world at any time. This allows online retailers to reach a greater audience, and can utilise advertising tools or SEO to establish and improve their online presence.
Online retailers usually can offer a wider selection of products and services than physical stores. Physical shops often are limited in terms of space, whereas online retailers can acquire larger spaces in cheaper areas and store their products more efficiently. With such an array of technology and features available, webmasters and marketers can choose the perfect e-commerce platform to sell online, and boost retail further with digital marketing strategies.
E-commerce and online shops that effectively manage their services are often able to provide superior prices to cash-and-carry stores. With lower overhead costs, due to lower physical store space, rent and utilities as well as less employees, online retailers have a greater freedom to offer better value and invest profit back into their business to improve service and strengthen their reach.
An online retail experience allows shoppers to browse a greater number of items simultaneously, as well as use price comparison and other tools to find their preferred deals.
Despite online retail rising in popularity and perhaps being the future for shoppers, shopping on e-commerce websites in the digital space does have its disadvantages. Although websites can utilise the finest technology and techniques to market their product, customers can often better rationalise an item’s quality in person, rather than online.
Moreover, products ordered online are open to facing distribution or delivery disruption.
In-Store Retail
Although in-store retails sales have diminished in market share due to the rise of online retail, brick-and-mortar shopping experiences still offer customers with benefits. Although the UK and other markets have opened up for businesses entirely after the Covid-19 Pandemic, there’s no question that lockdowns imposed worldwide have contributed to the popularity of online selling.
As customers are able to inspect their products prior to purchase to assure their quality, in-store retail transactions are far less likely to lead to returns, which can be a hindrance to a retail business' profitability.
In-store shoppers can also receive a superior level of personal assistance, and provide a better social experience, thrusting consumers from their homes into their communities to help local businesses thrive.
Department stores, supermarkets and cash and carrys can enhance their reputation and boost sales by merchandising their shops, creating eye-catching displays to provide a superior shopping experience.
Despite this, there are areas of retail where online channels vastly exceed the traditional in-store shopping experience. Travelling to and from shops or shopping centres can be inconvenient, time-consuming and expensive. Whereas online retailers are operational 24/7, brick-and-mortar stores and complexes generally have limited hours of operation, which can prevent some consumers from having the time in their day to visit and shop.
Retail Benefits with Pound Wholesale
Both online and in-store retailers are able to discover excellent value by bulk buying with Pound Wholesale. Having supported over 15,000 businesses worldwide as of 2023, Pound Wholesale have established its name by supplying discount stores and pound shops, department stores, supermarkets, car boot sellers, online retailers and e-commerce stores, marketplace and online sellers and many other types of retailers and businesses.
Delivering directly to your store or your storage facility, Pound Wholesale offer fantastic prices on over 7,000 products, offering bulk savings on big branded products, from toys, baby supplies and pet products to cleaning, DIY, kitchenware, stationery and much, much more!