Understandably, having a retail store entails not only buying and selling but also attracting old and new customers. After all, what is a retail store without its customers? One of the most common types of stores in operation worldwide is the retail store. People from all walks of life are aware of the wonders that a retail store can provide. Even if you do not own a retail store, you are almost certain that they are a part of your life somehow. Retail is a type of business that has been a part of our lives for a long time and is unlikely to disappear anytime soon. However, you cannot fully appreciate the significance of a retail store until you thoroughly understand what a retail store is. In this article, we will delve into all of the various aspects of retail stores. Continue reading to find out everything we're going to talk about today.
What is Retail?
A retail sale occurs when a company sells a product or service to a single consumer for personal use. The transaction itself can take place through various sales channels, including online, in a physical storefront, direct sales, or direct mail. The end-user is the buyer who qualifies the transaction as a retail transaction. To better understand what is a retail store, consider a simplified version of how a product is manufactured and delivered to the customer.
- Product manufacturers
First and foremost, there are the manufacturers. They are the ones who manufacture goods. Manufacturers gather materials, machines, and parts and hire workers to produce goods in large quantities. As an example, consider a tech company that makes gadgets.
- Distributors
Following that are the wholesalers, also known as distributors. These are the people who purchased a large number of products from manufacturers. Wholesalers resell the products to retailers at a higher price to make a profit.
- Shopkeepers
The retailers have arrived. They are the ones who buy the products produced by the manufacturers in smaller quantities from wholesalers to sell to customers. They sell the product at a higher price than when they purchased it from wholesalers to make a profit.
- Customer
Finally, the product is delivered to the customer. This chain defines a customer as the final user of a product who purchases it for personal use.
So, let us return to the original question: what is a retail store? On the other hand, a retail store is a store that sells a product to the final user, also known as a customer.
What is a Retail Store?
A retail store is any store that sells manufactured goods to the final or ultimate customer. There are various types of retail businesses, some of which are owned by retailers and others by manufacturers. Retail stores are a type of business in which goods are sold to individuals rather than large organizations for non-commercial purposes. To comprehend what a retail store is, you must first comprehend the concept of retail. So, what exactly is retail? On the other hand, retail is a diametrically opposed selling strategy to wholesale. Wholesale, however, sells in bulk to industrial or commercial businesses, whereas retail sells directly to individual customers. A retail store can be run in a variety of ways. Continue reading to learn about the various types of retail stores that exist today.
Retail Business Types
Image is taken from Strikingly user’s website
Understanding the different types of retail business is essential in understanding what is a retail store. In the United States, there are an estimated 3.7 million retail establishments, ranging from stores to restaurants to salons to gas stations, pest control companies, and auto mechanics. Retail is the nation's largest private-sector employer, employing nearly 42 million people. Retailers are classified into four types:
- Hardlines – items that tend to last a long time, such as appliances, cars, and furniture
- Soft goods or consumables – items such as clothing, shoes, and toiletries
- Food – items such as meat, cheese, produce, and baked goods
- Art – items such as fine art, books, and musical instruments
There are also various types of retail stores within those categories.
- Department Stores – the oldest and largest location for consumers to shop for a wide range of products under one roof. Examples include Target and Macy's
- Big Box Store – large retailers specializing in a single product category, such as electronics. Best Buy and Bed Bath and Beyond are two examples
- Discount Stores – Department stores that sell discounted merchandise and lower-priced brands. Examples include Walmart and Kmart
- Warehouse Stores – These no-frills warehouses frequently require membership to access their low prices. Costco and BJs are two examples
- Mom-and-Pop Shops – smaller, often niche stores owned and operated by small business owners. These are your neighborhood convenience stores and storefronts
- E-tailers – online retailers who sell products over the internet and deliver them to your door. They do not usually have physical stores. Examples include Amazon and Etsy
What Types of Businesses are Classified as Retail?
To better answer the question, 'what is a retail store?', let us delve deeper into the types of businesses or stores considered retail. Retail businesses exchange money for finished goods that they sell to customers. According to the US Census Bureau, total monthly retail sales in the United States were nearly $457 billion in March 2018. Retail goods can be sold in stores, kiosks, or even through the mail or the Internet. Grocery, drug, department, and convenience stores are examples of retail businesses. Retail businesses include service-related businesses such as beauty salons and rental stores. Supermarkets and grocery stores
Meat, produce, cereal, dairy products, health and beauty aids, and cleaning supplies are all available at grocery stores and supermarkets. Depending on its location and population, a grocery store's size can range from a small family market to a large supermarket. In the United States, people spend about $55 billion per month on groceries. There were approximately 40,00 grocery stores in the United States as of 2017. Approximately 69% of these were convenience store locations.
1. Stores of General Merchandise
This is most likely what comes to mind when someone asks, "What is a retail store?".General merchandise stores include department stores and, mass merchandisers, retail outlets that sell discounted merchandise. Clothing, sporting goods, auto parts, and toys are common items sold in general merchandise stores. Many department stores categorize their clothing by customer types, such as men, women, or toddlers. As of March 2018, people spent an estimated $58 billion per month on general merchandise, including warehouse clubs.
2. Stores that Specialize in One Type of Product
Specialty stores typically sell larger quantities of a specific type of product. Retail businesses that sell books, women's lingerie, motorcycle parts, sporting goods, vitamins, coffee, cell phones, pet supplies, or office supplies are examples of specialty stores. Specialty stores are typically smaller than most traditional retail stores and have higher operating costs due to lower volume. As a result, prices in specialty stores are typically higher than those in other retail establishments.
3. Non-Store Retailers
Consumers in the United States spend approximately $51 billion per month on products purchased by mail, catalog, or online. Non-store retailers, such as mail order or Internet companies, are often run by entrepreneurs and employ fewer people than store-based retailers. Non-store retailers spend a large portion of their budget on advertising because it is their only means of attracting customers.
4. Restaurants and Dining Locations
Americans spend slightly more than $60 billion per month on dining out, including fast food, midscale, casual, and fine dining establishments. According to the US Census Bureau, restaurants are classified as "Food Services and Drinking Places." As a result, a portion of the $60 billion is spent on alcoholic beverages in restaurants and bars and nightclubs, many of which also sell food.
Retail Store Examples
Let us look at a few examples of real retail stores in Strikingly to get a better understanding of our question of "what is a retail store?"
∙ Runway Prints
Image is taken from Strikingly user’s website
∙ Woody Shop
Image is taken from Strikingly user’s website
∙ Hayashida Rice
Image is taken from Strikingly user’s website
∙ Bahia Blanca
Image is taken from Strikingly user’s website
Strikingly's Retail Store Construction
So far, we've addressed one of the most fundamental questions in the retail industry: what is a retail store?. The concept of a retail store has evolved as technology has advanced. A retail store is now more commonly referred to as an eCommerce store. Today, you can simply search the internet and discover that almost every retail store has its own website or online store where customers can purchase their products.
Strikingly is your one-stop shop for creating a visually appealing online store. You can easily build your online store with Strikingly without extensive and in-depth website building knowledge. To begin creating your own online retail store, simply select from a collection of templates.
You will also receive all of the tools required to launch and manage your online retail store. To begin, you will have an order management system (OMS) that will allow you to keep track of your customers' orders and the stocks of your product. Your inventory can be easily managed directly from your website. You will also be given shipment options. You can set your shipping policy from your website, including taxes, shipping costs, and free shipping requirements. Your online retail store will also be able to accept payments in a variety of methods and currencies. You can, for example, integrate Paypal, Alipay, WeChatPay, and many other payment methods into your website. You can also receive payment in over a hundred different currencies.
Conclusion
Understandably, having a retail store entails buying and selling and attracting old and new customers.
After all, what is a retail store without its customers? Understandably, having a retail store entails buying and selling and attracting old and new customers. After all, what good is a retail store if it doesn't have customers? As a result, Strikingly will provide you with numerous features and benefits in the branding department. For example, you can easily optimize the SEO of your website by using Strikingly's SEO checklist. You can also get a custom email domain and use it to send out newsletters from your online store. So, are you ready to start planning your dream retail store? Create your online retail store with Strikingly today!
