Retail or Retail Company

The retail word comes from the French word ‘ritellier’ which means to cut or break. Retail or often referred to as retail (retailing) can be interpreted as all activities involved in selling goods or services directly to end consumers for the purpose of personal use and not business use.

Many assume that retailing is only related to selling products in stores. Whereas retail also provides delivery services for buyers. Activities undertaken in retail companies (retail) are selling various products, services or both, to end consumers for personal or shared consumption.

Apart from the above definition, retail is also interpreted differently by experts. Here are retail definitions according to experts, including:

  • Gilbert

The notion of retail is all business ventures that directly focus their marketing capabilities on satisfying the final consumer based on the organization of the sale of goods and services as the core of distribution .

  • Levy and Weitz

Retail is a series of business activities to add value to goods and services sold to consumers for the purpose of personal or household consumption.

  • Berman and Evans

Understanding retail is a business or business that tries to market goods or services to end consumers who use it for personal or household purposes.

  • Kotler

Retail is a retail sales system that includes all activities that involve the sale of goods or services to end consumers for personal, not business use.

From some of the above meanings, it can be summarized that retail is a business or business marketing and selling goods or services to end-level consumers whose purpose of use is for personal rather than for business or resale.

Retail Business Function

Based on the definition of retail above, there are several retail functions including the following:

  • Buy and store goods. The intention is to buy goods from producers in large quantities after that store them.
  • Transfer property rights to end-level consumers. Goods from retail companies will be distributed to end consumers who directly use goods or services.
  • Provide information about the nature and manner of use of an item. From retailers who communicate directly with end consumers or users, they can convey information directly about the nature and manner of use of the goods.
  • Make it easy for end customers to buy goods because retail companies operate in locations that are easily accessible.
  • Facilitate consumers in choosing the desired product because there are a variety of products at retailers.
  • Provide after-sales service for a particular product and participate in handling consumer complaints.
  • In certain situations, retail companies can provide goods with a credit system to consumers so that payments can be made more easily.

Retail types

Retail business, in general, has various types. The following are the types of retail businesses that are around us.

Perusahaan Retail Dengan Toko

  1. Specialty Shops ( Specialty Store). This type of retail business has a narrow product line with a deep diversity. For example, a shoe shop is a single-line shop; Men’s shoe store is a limited-line shop; while men’s futsal shoes stores are specialty goods stores.
  2. Department StoreDepartment Store ). This store has several products and is generally placed and managed by special buyers or specialized traders.
  3. Supermarkets (Supermarket). This type of retail has a large enough business, low cost, low margin but high volume. Supermarkets are designed to serve all needs for food, washing facilities, and family products.
  4. Convenience Stores ( Convenience Store). A shop with a small capacity and is located near a residential area that sells limited products but has high comfort and turnover and a slightly higher price.
  5. Discount Stores ( Discount Store). It is a shop whose goods prices are lower than standard prices, with lower margins but higher volumes.
  6. Reseller Rebates ( Off-Price Retailers). It is a shop where goods are bought below the prices of ordinary wholesalers and are sold below retail prices.
  7. Factory outlets ( Factory Outlet). Retail businesses are run by producers and generally sell goods that are excessive, no longer produced, or unusual.
  8. Retailers discounted independent ( Independent off-price retailer). Retail businesses run by entrepreneurs or larger retail businesses.
  9. Warehouse clubs or large merchant clubs ( warehouse clubs or wholesale clubs). This retail business sells products with limited choices, with substantial discounts for members who pay annual membership fees.
  10. Large Store ( Superstores). It is a store with a large enough area that sells products to meet the basic needs of consumers, both food and non-food.
  11. Shop Combination ( Combination stores). A food and drug store that has a sales space of up to 55,000 square feet.
  12. Hiperpasar (hypermarkets). It is a store with sales space of up to 220,000 square feet by combining supermarkets, discount stores, and retail warehouses.
  13. Catalog Exhibition Space. It is a shop with a large selection of products at quite high prices.

Perusahaan Retail Tanpa Toko

  1. Direct sales ( Direct Selling). It is a retail business with sales activities from mobile vendors and continues to develop into a large industry. Direct sales are carried out by the entrepreneurs directly to the final consumer.
  2. One toone seller ( One to One Selling ). It is a retail business where sales activities are carried out by entrepreneurs by directly marketing to consumers one by one.
  3. One to many sellers ( One to Party Selling). It is a retail business by selling an entrepreneur who comes to the home of a consumer who then invites a friend or neighbor to see a product demonstration.
  4. Network Marketing ( Network Marketing-MLM). Retail businesses who choose entrepreneurs to act as distributors will then have several members as agents while agents will sell products to other people to sell to the last user.
  5. Direct Marketing ( Direct Marketing). It is a retail business by direct marketing using catalogs and postal letters, even now it has developed in new ways, such as by telephone (Telemarketing), through TV ( Home Shopping ), or shopping information via electronic (infomercial).
  6. Vending Machine (Automatic Vending). It is a retail business using a vending machine that sells 24 hours a day, and is easy to find in many strategic places.
  7. Services Purchase ( Buying Service). It is a retail business by a retailer without a store that serves special consumers such as hospitals and government agencies.


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