View source for Finance:Retail

{{Short description|Sale of goods and services}}
[[File:Comercio en la plaza del 9 de abril de 1947, Tánger, Marruecos, 2015-12-11, DD 78.JPG|thumb|A grocery and cosmetics store in [[Place:Tangier|Tangier]], Morocco]]
'''Retail''' is the sale of [[Finance:Goods|goods]] and services to consumers, in contrast to [[Finance:Wholesaling|wholesaling]], which is sale to business or institutional customers. A '''retailer''' purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a [[Finance:Profit (accounting)|profit]]. Retailers are the final link in the [[Supply chain|supply chain]] from producers to consumers.

Retail markets and shops have a very ancient history, dating back to antiquity. Some of the earliest retailers were itinerant [[Biography:Peddler|peddler]]s. Over the centuries, retail shops were transformed from little more than "rude booths" to the sophisticated shopping malls of the modern era. In the digital age, an increasing number of retailers are seeking to reach broader markets by selling through multiple channels, including both bricks and mortar and [[Finance:Online shopping|online retailing]]. Digital technologies are also affecting the way that consumers pay for goods and services. Retailing support services may also include the provision of credit, delivery services, advisory services, stylist services and a range of other supporting services. Retail workers are the employees of such stores.

Most modern retailers typically make a variety of strategic level decisions including the type of store, the [[Finance:Market (economics)|market]] to be served, the optimal [[Finance:Product (business)|product]] assortment, customer service, supporting services, and the store's overall market positioning. Once the strategic retail plan is in place, retailers devise the retail mix which includes product, price, place, promotion, personnel, and presentation.

==Etymology==
The word ''retail'' comes from the [[Social:Old French|Old French]] verb {{Lang|fro|tailler}}, meaning "to cut off, clip, pare, divide in terms of tailoring" ({{Circa|1365}}). It was first recorded as a noun in 1433 with the meaning of "a sale in small quantities" from the [[Social:Middle French|Middle French]] verb ''retailler'' meaning "a piece cut off, shred, scrap, paring".<ref>{{OEtymD|retail|accessdate=2008-03-16}}</ref> At the present, the meaning of the word ''retail'' (in English, French, Dutch, German and Spanish) refers to the sale of small quantities of items to consumers (as opposed to wholesale).

==Definition and explanation==

Retail refers to the activity of selling goods or services directly to consumers or end-users.<ref>{{Cite web|url=https://www.thefreedictionary.com/retail|title=retail|via=The Free Dictionary|access-date=17 January 2018|archive-date=11 August 2020|archive-url=https://web.archive.org/web/20200811173951/https://www.thefreedictionary.com/retail|url-status=live}}</ref> Some retailers may sell to business customers, and such sales are termed ''non-retail activity.'' In some jurisdictions or regions, legal definitions of retail specify that at least 80 per cent of sales activity must be to end-users.<ref>Pride, W.M., Ferrell, O.C. Lukas, B.A., Schembri, S. Niininen, O. and Cassidy, R., ''Marketing Principles'', 3rd Asia-Pacific ed., Cengage, 2018,  pp. 449–50</ref>

Retailing often occurs in retail stores or service establishments, but may also occur through direct selling such as through [[Engineering:Vending machine|vending machine]]s, door-to-door sales or electronic channels.<ref>Pride, W.M., Ferrell, O.C. Lukas, B.A., Schembri, S. Niininen, O. and Cassidy, R., ''Marketing Principles'', 3rd Asia-Pacific ed., Cengage, 2018,  p. 451</ref>
Although the idea of retail is often associated with the purchase of goods, the term may be applied to service providers that sell to consumers. Retail service providers include retail banking, tourism, insurance, private healthcare, private education, private security firms, legal firms, publishers, public transport, and others. For example, a tourism provider might have a retail division that books travel and accommodation for consumers plus a wholesale division that purchases blocks of accommodation, hospitality, transport, and sightseeing which are subsequently packaged into a holiday tour for sale to retail travel agents.

Some retailers badge their stores as "wholesale outlets" offering "wholesale prices." While this practice may encourage consumers to imagine that they have access to lower prices, while being prepared to trade-off reduced prices for cramped in-store environments, in a strictly legal sense, a store that sells the majority of its merchandise direct to consumers, is defined as a retailer rather than a wholesaler. Different jurisdictions set parameters for the ratio of consumer to business sales that define a retail business.

== History ==
[[File:Mercati di Traiano - Roma.jpg|thumb|Marketplace at Trajan's Forum, the earliest known example of permanent retail shopfronts]]thumb|Grand Bazaar, Istanbul (interior). Established in 1455, it is thought to be the oldest continuously operating covered market.|alt=Retail markets have existed since ancient times. Archaeological evidence for trade, probably involving barter systems, dates back more than 10,000 years. As civilizations grew, barter was replaced with retail trade involving coinage. Selling and buying are thought to have emerged in Asia Minor (modern Turkey) in around the 7th-millennium BCE.<ref>Jones, Brian D.G.; Shaw, Eric H. (2006). "A History of Marketing Thought", ''Handbook of Marketing.'' Weitz, Barton A.; Wensley, Robin (eds), Sage, p. 41, {{ISBN|1-4129-2120-1}}.</ref> In {{wipe|Ancient Greece}}, markets operated within the [[Social:Agora|agora]], an open space where, on market days, goods were displayed on mats or temporary stalls.<ref>Thompson, D.B., ''An Ancient Shopping Center: The Athenian Agora'', ASCSA, 1993   pp. 19–21</ref> In ancient Rome, trade took place in the forum.<ref>McGeough, K.M., ''The Romans: New Perspectives'', ABC-CLIO, 2004, pp. 105–06</ref> The Roman forum was arguably the earliest example of a permanent retail shop-front.<ref>Coleman, P., ''Shopping Environments'', Elsevier, Oxford, 2006, p. 28</ref> Recent research suggests that China exhibited a rich history of early retail systems.<ref>Moore, K., and Reid., S., "The Birth of the Brand: 4000 years of Branding", ''Business History'', Vol. 50, 2008. pp. 419–32.</ref> From as early as 200 BCE, Chinese packaging and branding were used to signal family, place names and product quality, and the use of government imposed product branding was used between 600 and 900 CE.<ref>Eckhardt, G.M. and Bengtsson. A. "A Brief History of Branding in China", ''Journal of Macromarketing'', Vol, 30, no. 3, 2010, pp. 210–21</ref> Eckhart and Bengtsson have argued that during the Song Dynasty (960–1127), Chinese society developed a consumerist culture, where a high level of consumption was attainable for a wide variety of ordinary consumers rather than just the elite.<ref>Eckhardt, G.M. and Bengtsson. A. "A Brief History of Branding in China", ''Journal of Macromarketing'', Vol, 30, no. 3, 2010, p. 212</ref>

In Medieval England and [[Earth:Europe|Europe]], relatively few permanent shops were to be found; instead, customers walked into the tradesman's workshops where they discussed purchasing options directly with tradesmen.<ref>Thrupp, S.L., ''The Merchant Class of Medieval London, 1300–1500'', pp. 7–8</ref> In the more populous cities, a small number of shops were beginning to emerge by the 13th century.<ref>Pevsner, N. and Hubbard, E., ''The Buildings of England: Cheshire'' Penguin, 1978, p. 170</ref> Outside the major cities, most consumable purchases were made through markets or fairs.<ref>[http://www.history.ac.uk/cmh/gaz/gazweb2.html ''Gazetteer of Markets and Fairs in England and Wales to 1516''] {{Webarchive|url=https://web.archive.org/web/20070609094005/http://www.history.ac.uk/cmh/gaz/gazweb2.html |date=9 June 2007 }}, The List and Index Society, no. 32, 2003</ref> Market-places appear to have emerged independently outside Europe. The Grand Bazaar in Istanbul is often cited as the world's oldest continuously operating market; its construction began in 1455. The Spanish conquistadors wrote glowingly of markets in the Americas. In the 15th century, the Mexica (Aztec) market of Tlatelolco was the largest in all the [[Earth:Americas|Americas]].<ref>{{cite book|editor=Rebecca M. Seaman|title=Conflict in the Early Americas: An Encyclopedia of the Spanish Empire's ...|url=https://books.google.com/books?id=IXKjAQAAQBAJ&pg=PA375|page=375|isbn=978-1-59884-777-2|year=2013|publisher=Abc-Clio }}</ref>[[File:Ana Marie Wirth Apotheke.jpg|thumb|The retail service counter was an innovation of the eighteenth century.|alt=]]

By the 17th century, permanent shops with more regular trading hours were beginning to supplant markets and fairs as the main retail outlet. Provincial shopkeepers were active in almost every English market town.<ref>Cox, N.C. and Dannehl, K., ''Perceptions of Retailing in Early Modern England'', Aldershot, Hampshire, Ashgate, 2007, p,. 129</ref> As the number of shops grew, they underwent a transformation. The trappings of a modern shop, which had been entirely absent from the sixteenth- and early seventeenth-century store, gradually made way for store interiors and shopfronts that are more familiar to modern shoppers. Prior to the eighteenth century, the typical retail store had no counter, display cases, chairs, mirrors, changing rooms, etc. However, the opportunity for the customer to browse merchandise, touch and feel products began to be available, with retail innovations from the late 17th and early 18th centuries.<ref>Cox, N.C. and Dannehl, K., ''Perceptions of Retailing in Early Modern England'', Aldershot, Hampshire, Ashgate, 2007, pp. 153–54</ref>

[[File:Galeries de bois (ancien camp des Tartares), au Palais-Royal, 1825.jpg|thumb|Galeries de bois at au Palais-Royal, one of the earliest shopping arcades in Europe|alt=]]

By the late 18th century, grand shopping arcades began to emerge across Europe and in the Antipodes. A shopping arcade refers to a multiple-vendor space, operating under a covered roof. Typically, the roof was constructed of glass to allow for natural light and to reduce the need for candles or electric lighting. Some of the earliest examples of shopping arcade appeared in Paris, due to its lack of pavement for pedestrians.<ref name="Conlin, J. 2013">Conlin, J., ''Tales of Two Cities: Paris, London and the Birth of the Modern City'', Atlantic Books, 2013, Chapter 2</ref> While the arcades were the province of the bourgeoisie, a new type of retail venture emerged to serve the needs of the working poor. [[Biography:John Stuart Mill|John Stuart Mill]] wrote about the rise of the [[Finance:Consumers' co-operative|co-operative]] retail store, which he witnessed first-hand in the mid-nineteenth century.<ref>Mill, J.S., ''Principles of a Political Economy with some of their Applications to Social Philosophy'', 7th ed., London, Longman, 1909, Section IV.7.53</ref>[[File:AA446b copy.jpeg|thumb|Department stores, such as {{Lang|fr|Le Bon Marché|italic=no}} of France, appeared from the mid nineteenth century.]]

The modern era of retailing is defined as the period from the industrial revolution to the 21st century.<ref>''Reshaping Retail: Why Technology is Transforming the Industry and How to Win in the New Consumer Dr''</ref> In major cities, the department store emerged in the mid- to late 19th century, and permanently reshaped shopping habits, and redefined concepts of service and luxury.<ref>{{cite web|last = Koot|first = G.M.|title = Shops and Shopping in Britain: from market stalls to chain stores|publisher = University of Massachusetts, Dartmouth|date = 2011|url = https://www1.umassd.edu/ir/resources/consumption/shopping.pdf|access-date = 29 May 2017|archive-date = 6 August 2019|archive-url = https://web.archive.org/web/20190806075623/https://www1.umassd.edu/ir/resources/consumption/shopping.pdf|url-status = dead}}</ref> Many of the early department stores were more than just a retail emporium; rather they were venues where shoppers could spend their leisure time and be entertained.<ref>Howard Moss, M., ''Shopping as an Entertainment Experience'', Plymouth, Lexington Books, pp. 35–39</ref> Retail, using mail order, came of age during the mid-19th century. Although catalogue sales had been used since the 15th century, this method of retailing was confined to a few industries such as the sale of books and seeds. However, improvements in transport and postal services led several entrepreneurs on either side of the Atlantic to experiment with catalogue sales.<ref>Goldstein. J., ''101 Amazing Facts about Wales'', Andrews, UK, 2013</ref>

In the post-war period, an American architect, Victor Gruen developed a concept for a shopping mall; a planned, self-contained shopping complex complete with an indoor plaza, statues, planting schemes, piped music, and car-parking. Gruen's vision was to create a shopping atmosphere where people felt so comfortable, they would spend more time in the environment, thereby enhancing opportunities for purchasing. The first of these malls opened at Northland Mall near Detroit in 1954.<ref name="NYer04">Malcolm Gladwell, [http://www.newyorker.com/archive/2004/03/15/040315fa_fact1 The Terrazzo Jungle] {{Webarchive|url=https://web.archive.org/web/20140709234809/http://www.newyorker.com/archive/2004/03/15/040315fa_fact1 |date=9 July 2014 }}, ''The New Yorker'', March 15, 2004</ref> Throughout the twentieth century, a trend towards larger store footprints became discernible. The average size of a U.S. supermarket grew from {{Convert|31000|sqft|m2}} square feet in 1991 to {{Convert|44000|sqft|m2}} square feet in 2000.<ref>Byrne-Paquet, L., ''The Urge to Splurge: A Social History of Shopping'', ECW Press, Toronto, Canada, p. 83</ref> By the end of the twentieth century, stores were using labels such as "mega-stores" and "warehouse" stores to reflect their growing size.<ref>{{cite web|last = Johanson|first = Simon|title = Bunnings Shifts Focus as it Upsizes Store Network|work = The Age|date = 2 June 2015|url = https://www.theage.com.au/business/bunnings-shifts-focus-as-it-upsizes-store-network-20150601-ghdvs4.html|access-date = 19 December 2018|archive-date = 20 December 2018|archive-url = https://web.archive.org/web/20181220230658/https://www.theage.com.au/business/bunnings-shifts-focus-as-it-upsizes-store-network-20150601-ghdvs4.html|url-status = live}}</ref> The upward trend of increasing retail space was not consistent across nations and led in the early 21st century to a 2-fold difference in square footage per capita between the United States and Europe.<ref>{{Cite news|title=The Death of Retail is Greatly Exaggerated |last= Wahba|first=Phil|date=15 June 2017|work=Fortune|page=34|type=Print magazine}}</ref>

As the 21st century takes shape, some indications suggest that large retail stores have come under increasing pressure from [[Social:E-commerce|online sales models]] and that reductions in store size are evident.<ref>Wetherell, S., [https://www.jacobinmag.com/2014/04/the-last-shopping-mall "The Shopping Mall's Socialist Pre-History"] {{Webarchive|url=https://web.archive.org/web/20170720195208/https://www.jacobinmag.com/2014/04/the-last-shopping-mall |date=20 July 2017 }}, Jacobin Magazine, 4 August 2014</ref> Under such competition and other issues such as business debt,<ref>{{cite news|last1=Townsend|first1=Matt|last2=Surane|first2=Jenny|last3=Orr|first3=Emma|last4=Cannon|first4=Christopher|title=America's 'Retail Apocalypse' Is Really Just Beginning|url=https://www.bloomberg.com/graphics/2017-retail-debt/|access-date=15 January 2018|publisher=Bloomberg|date=November 8, 2017|archive-date=18 January 2018|archive-url=https://web.archive.org/web/20180118160424/https://www.bloomberg.com/graphics/2017-retail-debt/|url-status=live}}</ref> there has been a noted business disruption called the [[Finance:Retail apocalypse|retail apocalypse]] in recent years which several retail businesses, especially in North America, are sharply reducing their number of stores, or going out of business entirely.

==Retail strategy==

The distinction between "strategic" and "managerial" decision-making is commonly used to distinguish "two phases having different goals and based on different conceptual tools. Strategic planning concerns the choice of policies aiming at improving the competitive position of the firm, taking account of challenges and opportunities proposed by the competitive environment. On the other hand, managerial decision-making is focused on the implementation of specific targets."<ref>Volpato, G. and Stocchetti, A., [https://mpra.ub.uni-muenchen.de/30841/ "Old and new approaches to marketing: The quest of their epistemological roots"] {{Webarchive|url=https://web.archive.org/web/20181104064253/https://mpra.ub.uni-muenchen.de/30841/ |date=4 November 2018 }}, MPRA Paper No. 30841, 2009, p. 34</ref>

In retailing, the strategic plan is designed to set out the [[Social:Vision statement|vision]] and provide guidance for retail decision-makers and provide an outline of how the product and service mix will optimize customer satisfaction. As part of the strategic planning process, it is customary for strategic planners to carry out a detailed environmental scan which seeks to identify trends and opportunities in the competitive environment, market environment, economic environment and statutory-political environment. The retail strategy is normally devised or reviewed every three to five years by the chief executive officer. The profit margins of retailers depend largely on their ability to achieve market competitive transaction costs.

The strategic [[Finance:Financial analysis|retail analysis]] typically includes following elements:<ref>Lambda, A.J., ''The Art Of Retailing'', McGraw-Hill, (2003), 2008, pp. 315–26</ref>

[[File:Lanvin Monte Carlo 2004.jpg|thumb|The retailer also considers the overall strategic position and retail image.]]

* [[Finance:Market analysis|Market analysis]] – Market size, stage of market, market competitiveness, market attractiveness, market trends
* Customer analysis – [[Finance:Market segmentation|Market segmentation]], demographic, geographic, and psychographic profile, values and attitudes, shopping habits, brand preferences, analysis of needs and wants, and media habits
* Internal analysis – Other capacities including human resource capability, technological capability, financial capability, ability to generate [[Finance:Economies of scale|scale economies]] or [[Finance:Economies of scope|economies of scope]], trade relations, reputation, positioning, and past performance
* Competition analysis – Availability of substitutes, competitor's strengths and weaknesses, perceptual mapping, competitive trends
* Review of product mix – :: Sales per square foot, stock-turnover rates, profitability per product line
* Review of distribution channels – Lead-times between placing order and delivery, cost of distribution, cost efficiency of intermediaries
* Evaluation of the economics of the strategy – Cost-benefit analysis of planned activities

At the conclusion of the retail analysis, retail marketers should have a clear idea of which groups of customers are to be the target of marketing activities. Not all elements are, however, equal, often with demographics, shopping motivations, and spending directing consumer activities.<ref>{{Cite journal|last1=Parker|first1=Christopher J.|last2=Wenyu|first2=Lu|date=2019-05-13|title=What influences Chinese fashion retail? Shopping motivations, demographics and spending|journal=Journal of Fashion Marketing and Management|language=en|volume=23|issue=2|pages=158–175|doi=10.1108/JFMM-09-2017-0093|s2cid=170031856|issn=1361-2026|url=https://figshare.com/articles/What_influences_Chinese_fashion_retail_Shopping_motivations_demographics_and_spending/9348191|access-date=3 September 2020|archive-date=28 October 2020|archive-url=https://web.archive.org/web/20201028032125/https://figshare.com/articles/What_influences_Chinese_fashion_retail_Shopping_motivations_demographics_and_spending/9348191|url-status=live}}</ref> Retail research studies suggest that there is a strong relationship between a store's positioning and the socio-economic status of customers.<ref>Fill,  C., ''Marketing Communications: Framework, Theories and Application'', London, Prentice Hall, 1995, p. 70</ref> In addition, the retail strategy, including service quality, has a significant and positive association with customer loyalty.<ref>Yu-Jia, H. (2012). "The Moderating Effect of Brand Equity and the Mediating Effect of Marketing Mix Strategy On the Relationship Between Service Quality and Customer Loyalty
". ''International Journal of Organizational Innovation'', 155–62.</ref> A marketing strategy effectively outlines all key aspects of firms' targeted audience, demographics, preferences. In a highly competitive market, the retail strategy sets up long-term sustainability. It focuses on customer relationships, stressing the importance of added value, customer satisfaction and highlights how the store's market positioning appeals to targeted groups of customers.<ref>Morschett, D., Swoboda, B. and Schramm, H., "Competitive Strategies in Retailing: An Investigation of the Applicability of Porter's Framework for Food Retailers ''Journal of Retailing and Consumer Services'', Vol. 13, 2006, pp. 275–87</ref>

==Retail marketing==
[[File:Retail mix.jpg|thumb|upright=1.2|The retail marketing mix or the 6 Ps of retailing]]

A retail mix is devised for the purpose of coordinating day-to-day tactical decisions. The retail marketing mix typically consists of six broad decision layers including product decisions, place decisions, promotion, price, personnel and presentation (also known as physical evidence). The retail mix is loosely based on the [[Finance:Marketing mix|marketing mix]], but has been expanded and modified in line with the unique needs of the retail context. A number of scholars have argued for an expanded marketing, mix with the inclusion of two new Ps, namely, ''Personnel'' and ''Presentation'' since these contribute to the customer's unique retail experience and are the principal basis for retail differentiation. Yet other scholars argue that the ''Retail Format'' (i.e. retail formula) should be included.<ref>Constantinides, E., "The Marketing Mix Revisited: Towards the 21st Century Marketing", ''Journal of Marketing Management'', Vo. 22, 2006, pp. 422-423</ref> The modified retail marketing mix that is most commonly cited in textbooks is often called the ''6 Ps of retailing'' (see diagram at right).<ref>Berens, J.S., "The Marketing Mix, the Retailing Mix and the Use of Retail Strategy Continua", ''Proceedings of the 1983 Academy of Marketing Science (AMS)'', [Part of the series Developments in Marketing Science], pp. 323–27</ref><ref>Lamb, C.W., Hair, J.F. and McDaniel, C., ''MKTG 2010'', Mason, OH, Cengage, pp. 193–94</ref>[[File:Supermarket full of goods.jpg|thumb|left|A typical supermarket carries an assortment of between 30,000 and 60,000 different products.]]The primary [[Social:Product management|product-related decisions]] facing the retailer are the product assortment (what product lines, how many lines and which brands to carry); the type of customer service (high contact through to self-service) and the availability of support services (e.g. credit terms, delivery services, after sales care). These decisions depend on careful analysis of the market, demand, competition as well as the retailer's skills and expertise.

Customer service is the "sum of acts and elements that allow consumers to receive what they need or desire from [the] retail establishment." Retailers must decide whether to provide a full service outlet or minimal service outlet, such as no-service in the case of vending machines; self-service with only basic sales assistance or a full service operation as in many boutiques and speciality stores. In addition, the retailer needs to make decisions about sales support such as customer delivery and after sales customer care.

[[File:Souvenir.london.arp.750pix.jpg|thumb|Sellers of souvenirs are typically located in high traffic areas such as this London souvenir stand situated near a railway station on a busy street corner.]]Place decisions are primarily concerned with consumer access and may involve location, space utilisation and operating hours. Retailers may consider a range of both qualitative and quantitative factors to evaluate to potential sites under consideration. Macro factors include market characteristics (demographic, economic and socio-cultural), demand, competition and infrastructure (e.g. the availability of power, roads, public transport systems).  Micro factors include the size of the site (e.g. availability of parking), access for delivery vehicles. A major retail trend has been the shift to multi-channel retailing. To counter the disruption caused by online retail, many bricks and mortar retailers have entered the online retail space, by setting up online catalogue sales and e-commerce websites. However, many retailers have noticed that consumers behave differently when shopping online. For instance, in terms of choice of online platform, shoppers tend to choose the online site of their preferred retailer initially, but as they gain more experience in online shopping, they become less loyal and more likely to switch to other retail sites.<ref>Verhoef, P., Kannan, P.K. and Inman, J., "From Multi-channel Retailing to Omni-channel Retailing: Introduction to the Special Issue on Multi-channel Retailing", ''Journal of Retailing'', vol. 91,  pp. 174–81. {{doi|10.1016/j.jretai.2015.02.005}}</ref> [[Finance:Online shopping|Online stores]] are usually available 24 hours a day, and many consumers across the globe have Internet access both at work and at home.
[[File:Fan-Tankstelle von Dynamo Dresden.JPG|thumb|left|upright|Extensive use of the terminal digit 'nine' suggests that psychological pricing is at play.]]

The broad [[Finance:Pricing strategies|pricing strategy]] is normally established in the company's overall strategic plan. In the case of chain stores, the pricing strategy would be set by head office. Broadly, there are six approaches to pricing strategy mentioned in the marketing literature: operations-oriented,<ref name="Dibb, S. 2013">Dibb, S., Simkin, L., Pride, W.C. and Ferrell, O.C., ''Marketing: Concepts and Strategies'', Cengage, 2013, Chapter 12</ref> revenue-oriented,<ref name="Dibb, S. 2013" /> customer-oriented,<ref name="Dibb, S. 2013" /> [[Finance:Value-based pricing|value-based]],<ref>Nagle, T., Hogan, J. and Zale, J., ''The Strategy and Tactics of Pricing: A Guide to Growing More Profitably'', Oxon, Routledge, 2016, p. 1 and 6</ref><ref>Brennan, R., Canning, L. and McDowell, R., ''Business-to-Business Marketing'', 2nd ed., London, Sage, 2011, p. 331</ref> [[Finance:Relationship-based pricing|relationship-oriented]],<ref>Neumeier, M.,
''The Brand Flip: Why customers now run companies and how to profit from it (Voices That Matter)'', 2008, p. 55</ref> and socially-oriented.<ref>{{cite book|last = Irvin|first= G.|title =Modern Cost-Benefit Methods|publisher= Macmillan |date = 1978|pages = 137–160|isbn = 978-0-333-23208-8}}</ref> When decision-makers have determined the broad approach to pricing (i.e., the pricing strategy), they turn their attention to pricing tactics. Tactical pricing decisions are shorter term prices, designed to accomplish specific short-term goals. Pricing tactics that are commonly used in retail include discount pricing,<ref name="Rao, V.R 2009, p.15">Rao, V.R. and Kartono, B., "Pricing Strategies and Objectives: A Cross-cultural Survey", in ''Handbook of Pricing Research in Marketing'', Rao, V.R. (ed), Northampton, MA, Edward Elgar, 2009, p. 15</ref> [[Finance:Everyday low price|everyday low price]]s,<ref name="hoch">{{cite journal|last1 = Hoch|first1 = Steven J.|last2 = Drèze|first2 = Xavier|last3 = Purk|first3 = Mary E.|title = EDLP, Hi-Lo, and Margin Arithmetic|journal = The Journal of Marketing|volume = 58|number = 4|date = October 1994|pages = 16–27|url = http://www.davidreiley.com/FieldExperimentsCourse/papers/FullReadingList/DrezeEverydayLowPricing.pdf|doi = 10.1177/002224299405800402|s2cid = 18134783|access-date = 19 December 2018|archive-date = 20 December 2018|archive-url = https://web.archive.org/web/20181220230718/http://www.davidreiley.com/FieldExperimentsCourse/papers/FullReadingList/DrezeEverydayLowPricing.pdf|url-status = live}}</ref> high-low pricing,<ref name="hoch" /><ref>Kaufmann, P., "Deception in retailer high-low pricing: A 'rule of reason' approach", ''Journal of Retailing, '' Volume 70, Issue 2, 1994, pp. 115–1383.</ref> [[Finance:Loss leader|loss leader]]s, [[Product bundling|product bundling]],<ref>Guiltnan, J.P., "The Price Bundling of Services", ''Journal of Marketing'', April 1987</ref> promotional pricing, and [[Philosophy:Psychological pricing|psychological pricing]].<ref>Poundstone, W., ''Priceless: The Myth of Fair Value (and How to Take Advantage of It)'', New York: Hill and Wang, 2011, pp. 184–200</ref> Retailers must also plan for customer preferred payment modes&nbsp;– e.g. cash, credit, lay-by, Electronic Funds Transfer at Point-of-Sale (EFTPOS). All payment options require some type of handling and attract costs.<ref>Barr, A., "PayPal Deepens Retail Drive in Discover Payments Deal", ''Technology News.'' 22 August 2012</ref> Contrary to common misconception, price is not the most important factor for consumers, when deciding to buy a product.<ref>{{Cite web|url=https://www.forbes.com/sites/forbesagencycouncil/2019/02/05/three-ways-to-crush-e-commerce-busting-common-misconceptions/|title=Council Post: Three Ways To Crush E-Commerce: Busting Common Misconceptions|first=Rafael|last=Romis|website=Forbes|access-date=6 February 2019|archive-date=6 February 2019|archive-url=https://web.archive.org/web/20190206165436/https://www.forbes.com/sites/forbesagencycouncil/2019/02/05/three-ways-to-crush-e-commerce-busting-common-misconceptions/|url-status=live}}</ref>
[[File:Mcdonald's - panoramio.jpg|thumb|One of the most well-known cross-selling sales scripts comes from McDonald's. "Would you like fries with that?"]]
Because patronage at a retail outlet varies, flexibility in [[Social:Schedule (workplace)|scheduling]] is desirable. [[Employee scheduling software]] is sold, which, using known patterns of customer patronage, more or less reliably predicts the need for staffing for various functions at times of the year, day of the month or week, and time of day. Usually needs vary widely. Conforming staff utilization to staffing needs requires a flexible workforce which is available when needed but does not have to be paid when they are not, part-time workers; as of 2012 70% of retail workers in the United States were part-time. This may result in financial problems for the workers, who while they are required to be available at all times if their work hours are to be maximized, may not have sufficient income to meet their family and other obligations.<ref name="NYT102812">{{cite news|title=A Part-Time Life, as Hours Shrink and Shift|url=https://www.nytimes.com/2012/10/28/business/a-part-time-life-as-hours-shrink-and-shift-for-american-workers.html|access-date=28 October 2012|newspaper=The New York Times|date=27 October 2012|author=Steven Greenhouse|archive-date=27 November 2020|archive-url=https://web.archive.org/web/20201127021021/https://www.nytimes.com/2012/10/28/business/a-part-time-life-as-hours-shrink-and-shift-for-american-workers.html|url-status=live}}</ref>  Retailers can employ different techniques to enhance sales volume and to improve the customer experience, such as Add-on, Upsell or Cross-sell; Selling on value;<ref>Hee, J.K., "Stand-alone Sale of a Free Gift: Is it effective to accentuate promotion value?" ''Social Behavior & Personality'', Vol. 43, no. 10, 2015, pp. 1593–1606</ref> and knowing when to close the sale.<ref>{{cite book |last1 = Cant|first1= M.C. |last2= van Heerden|first2= C.H.|title=Personal Selling|publisher= Juta Academic|date= 2008|page = 176|url = https://books.google.com/books?id=gy4K3muCsmsC&q=Cant%2C%20M.C.%20and%20van%20Heerden%2C%20C.H.%2C%20Personal%20Selling%2C%20Juta%20Academic%2C%202008&pg=PA176| isbn = 978-0-7021-6636-5}}</ref>

Transactional marketing aims to find target consumers, then negotiate, trade, and finally end relationships to complete the transaction. In this one-time transaction process, both parties aim to maximize their own interests. As a result, transactional marketing raises follow-up problems such as poor after-sales service quality and a lack of feedback channels for both parties. In addition, because retail enterprises needed to redevelop client relationships for each transaction, marketing costs were high and customer retention was low. All these downsides to transactional marketing gradually pushed the retail industry towards establishing long-term cooperative relationships with customers. Through this lens, enterprises began to focus on the process from transaction to relationship.<ref>[https://business.monash.edu/marketing/marketing-dictionary/r/retail-mix Monash University, Dictionary]. {{Webarchive|url=https://web.archive.org/web/20170713222328/https://business.monash.edu/marketing/marketing-dictionary/r/retail-mix |date=13 July 2017 }}.</ref>
While expanding the sales market and attracting new customers is very important for the retail industry, it is also important to establish and maintain long term good relationships with previous customers, hence the name of the underlying concept, "relational marketing". Under this concept, retail enterprises value and attempt to improve relationships with customers, as customer relationships are conducive to maintaining stability in the current competitive retail market, and are also the future of retail enterprises.

[[File:Change the way you WiFi.jpg|thumb|Modern technologies are often displayed in clean environments with much empty space.]]
[[File:Harrods Food Department Halls (8473364801).jpg|thumb|The retail servicescape includes the appearance, equipment, display space, retail counters, signage, layout and functionality of a retail outlet. Pictured: Harrods food court]]

Presentation refers to the physical evidence that signals the retail image. Physical evidence may include a diverse range of elements&nbsp;– the store itself including premises, offices, exterior facade and interior layout, websites, delivery vans, warehouses, staff uniforms. The environment in which the retail service encounter occurs is sometimes known as the ''retail [[Finance:Servicescape|servicescape]].''<ref>"The Impact of Retail Servicescape on Buying Behaviour", ''BVIMSR's Journal of Management Research'',  Vol 6, No. 2, 2014, pp. 10–17</ref> The store environment consists of many elements such as aromas, the physical environment (furnishings, layout, and functionality), ambient conditions (lighting, air temperature, and music) as well as signs, symbols, and artifacts (e.g. sales promotions, shelf space, sample stations, visual communications). Retail designers pay close attention to the front of the store, which is known as the ''decompression zone''. In order to maximize the number of selling opportunities, retailers generally want customers to spend more time in a retail store. However, this must be balanced against customer expectations surrounding convenience, access and realistic waiting times.<ref>Wakefield, L.K. and Blodgett, G J., "The Effect of the Servicescape on Customers' Behavioral Intentions in Leisure Service Settings", ''The Journal of Services Marketing'', Vol. 10, No. 6, pp. 45–61.</ref> The way that brands are displayed is also part of the overall retail design. Where a product is placed on the shelves has implications for purchase likelihood as a result of visibility and access.<ref>Hall, C.M. and Mitchell, R., ''Wine Marketing: A Practical Guide'', pp. 182–83</ref> Ambient conditions, such as lighting, temperature and music, are also part of the overall retail environment.<ref name="Bailey, P. 2015">Bailey, P. (2015, April). Marketing to the senses: A multisensory strategy to align the brand touchpoints. Admap, 2–7.</ref> It is common for a retail store to play music that relates to their target market.<ref name="hul">{{Cite journal|last1=Hul|first1=Michael K.|last2=Dube|first2=Laurette|last3= Chebat |first3=Jean-Charles|date=1997-03-01|title=The impact of music on consumers' reactions to waiting for services|journal=Journal of Retailing|volume=73|issue=1 |pages= 87–104|doi= 10.1016/S0022-4359(97)90016-6}}</ref>

<div id="Kinds of retailers"> <!-- anchor tag for links to this section. --></div>

==Shopper profiles==
Two different strands of research have investigated shopper behaviour. One is primarily concerned with shopper motivations. The other stream of research seeks to segment shoppers according to common, shared characteristics. To some extent, these streams of research are inter-related, but each stream offers different types of insights into shopper behaviour.

[[File:Embroidery and lace- their manufacture and history from the remotest antiquity to the present day. A handbook for amateurs, collectors and general readers (1888) (14593807460).jpg|thumb|upright|People who shop for pleasure are known as recreational shoppers. The recreational shopper has its origins in the grand European shopping arcades. Pictured: The gentry in a Dutch lace shop in the 17th century]]

Babin et al. carried out some of the earliest investigations into shopper motivations and identified two broad motives: ''utilitarian'' and ''hedonic.'' Utilitarian motivations are task-related and rational. For the shopper with utilitarian motives, purchasing is a work-related task that is to be accomplished in the most efficient and expedient manner. On the other hand, hedonic motives refer to pleasure. The shopper with hedonic motivations views shopping as a form of escapism where they are free to indulge fantasy and freedom. Hedonic shoppers are more involved in the shopping experience.<ref>{{Cite journal |url=https://www.researchgate.net/publication/24098851 |doi=10.1086/209376|title=Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value|journal=Journal of Consumer Research|volume=20|issue=4|pages=644|year=1994|last1=Babin|first1=Barry J.|last2=Darden|first2=William R.|last3=Griffin|first3=Mitch}}</ref>

Many different shopper profiles can be identified. Retailers develop customised segmentation analyses for each unique outlet. However, it is possible to identify a number of broad shopper profiles. One of the most well-known and widely cited shopper typologies is that developed by Sproles and Kendal in the mid-1980s.<ref>Durvasula, S., Lysonski, S. and Andrews, J.C. (1993), "Cross-cultural generalizability of a scale for profiling consumers' decision-making styles", ''The Journal of Consumer Affairs'', Vol. 27 No. 1, pp. 55–65</ref><ref>Sproles, G.B. (1985), "From perfectionism to faddism: measuring consumers' decision-making styles", in Schnittgrund, K.P. (Ed.), ''American Council on Consumer Interests (ACCI), Conference Proceedings'', Columbia, MO, pp. 79–85.</ref><ref>Sproles, G.B. (1983). Conceptualisation and measurement of optimal consumer decision making. ''Journal of Consumer Affairs'', Vol. 17 No. 2, pp. 421–38.</ref> Sproles and Kendall's consumer typology has been shown to be relatively consistent across time and across cultures.<ref>{{Cite journal |doi=10.1080/09593969.2014.911199|title=Consumer innovativeness and consumer decision styles: A confirmatory and segmentation analysis|journal=The International Review of Retail, Distribution and Consumer Research|volume=25|pages=35–54|year=2015|last1=Mishra|first1=Anubhav A.|s2cid=219645290}}</ref><ref>Jain, R. and Sharma, A., "A Review on Sproles & Kendall's Consumer Style Inventory (CSI) for Analyzing Decision Making Styles of Consumers", ''Indian Journal of Marketing'', Vol. 43, no. 3, 2013</ref> Their typology is based on the consumer's approach to making purchase decisions.<ref>Sproles, G.B., & Kendall, E.L., "A methodology for profiling consumers' decision-marking styles", ''Journal of Consumer Affairs'', Vol., 20 No. 2, 1986, pp. 267–79</ref>
* Quality conscious/Perfectionist: Quality-consciousness is characterised by a consumer's search for the very best quality in products; quality conscious consumers tend to shop systematically making more comparisons and shopping around.
* Brand-conscious: Brand-consciousness is characterised by a tendency to buy expensive, well-known brands or designer labels. Those who score high on brand-consciousness tend to believe that the higher prices are an indicator of quality and exhibit a preference for department stores or top-tier retail outlets.
* Recreation-conscious/Hedonistic: Recreational shopping is characterised by the consumer's engagement in the purchase process. Those who score high on recreation-consciousness regard shopping itself as a form of enjoyment.
* Price-conscious: A consumer who exhibits price-and-value consciousness. Price-conscious shoppers carefully shop around seeking lower prices, sales or discounts and are motivated by obtaining the best value for money.
* Novelty/fashion-conscious: characterised by a consumer's tendency to seek out new products or new experiences for the sake of excitement; who gain excitement from seeking new things; they like to keep up-to-date with fashions and trends, variety-seeking is associated with this dimension.
* Impulsive: Impulsive consumers are somewhat careless in making purchase decisions, buy on the spur of the moment and are not overly concerned with expenditure levels or obtaining value. Those who score high on impulsive dimensions tend not to be engaged with the object at either a cognitive or emotional level.
* Confused (by [[Philosophy:Overchoice|overchoice]]): characterised by a consumer's confusion caused by too many product choices, too many stores or an overload of product information; tend to experience information overload.
* Habitual/brand loyal: characterised by a consumer's tendency to follow a routine purchase pattern on each purchase occasion; consumers have favourite brands or stores and have formed habits in choosing; the purchase decision does not involve much evaluation or shopping around.

Some researchers have adapted Sproles and Kendall's methodology for use in specific countries or cultural groups.<ref>Bauer, H.H., Sauer, N.E., and Becker, C., "Investigating the relationship between product involvement and consumer decision-making styles", ''Journal of Consumer Behaviour''. Vol. 5, 2006 342–54.</ref> Consumer decision styles are important for retailers and marketers because they describe behaviours that are relatively stable over time and for this reason, they are useful for market segmentation.

== {{anchor|retail format|retail outlet|retail shop|retail store}}Types of retail outlets ==
[[File:Pfficeworks inside.jpg|thumb|Australia's Officeworks is a category killer, retailing everything for the home office or small commercial office; stationery, furniture, electronics, communications devices, copying, printing and photography services, coffee, tea and light snacks.]]
[[File:Apple Store, Opéra 1.jpg|thumb|Apple's concept stores include video walls, Wi-Fi and desks to provide an immersive customer experience.]]
[[File:ScarsdaleGeneralStore.JPG|thumb|A general store in Scarsdale, Victoria, Australia operates as a post-office, newsagent, petrol station, video hire, grocer and take-away food retailer. This type of store is referred to locally as a milk bar.]]thumb|A local store named "Luovon puoji" in the [[Hailuoto Island, {{wipe|Finland}}]]''Retail formats'' (also known as ''retail formulas'') influence the consumer's store choice and addresses the consumer's expectations. At its most basic level, a retail format is a simple [[Finance:Marketplace|marketplace]], that is; a location where goods and services are exchanged. In some parts of the world, the retail sector is still dominated by small family-run stores, but large retail chains are increasingly dominating the sector, because they can exert considerable buying power and pass on the savings in the form of lower prices. Many of these large retail chains also produce their own private labels which compete alongside manufacturer brands. Considerable consolidation of retail stores has changed the retail landscape, transferring power away from wholesalers and into the hands of the large retail chains.<ref>Constantinides, E., "The Marketing Mix Revisited: Towards the 21st Century Marketing", ''Journal of Marketing Management'', Vol. 22, 2006, p. 421</ref>  In Britain and Europe, the retail sale of goods is designated as a ''service activity.'' The European Service Directive applies to all retail trade including periodic markets, street traders and peddlers.

Retail stores may be classified by the type of product carried. Softline retailers sell goods that are consumed after a single-use, or have a limited life (typically under three years) in they are normally consumed. Soft goods include clothing, other fabrics, footwear, toiletries, cosmetics, medicines and [[Engineering:Stationery|stationery]].<ref>{{cite web | url=http://www.valueline.com/Tools/Educational_Articles/Stocks/The_World_of_Retail__Hardlines_vs__Softlines.aspx | title=The World of Retail: Hardlines vs. Softlines | publisher=Value Line | access-date=22 May 2014 | author=Ferrara, J. Susan | archive-date=18 July 2014 | archive-url=https://web.archive.org/web/20140718155656/http://www.valueline.com/Tools/Educational_Articles/Stocks/The_World_of_Retail__Hardlines_vs__Softlines.aspx | url-status=live }}</ref><ref>{{cite news | url=http://smallbusiness.chron.com/soft-merchandising-26175.html | title=What is Soft Merchandising? | newspaper=Houston Chronicle | access-date=22 May 2014 | author=Time, Forest | archive-date=17 July 2014 | archive-url=https://web.archive.org/web/20140717151205/http://smallbusiness.chron.com/soft-merchandising-26175.html | url-status=live }}</ref> [[Finance:Grocery store|Grocery store]]s, including supermarkets and hypermarkets, along with convenience stores carry a mix of food products and consumable household items such as detergents, cleansers, personal hygiene products. Retailers selling consumer durables are sometimes known as ''hardline retailers''<ref>{{cite web | url=http://www.investorwords.com/2282/hard_goods.html | title=hard goods | publisher=Investor Words | access-date=22 May 2014 | archive-date=4 January 2018 | archive-url=https://web.archive.org/web/20180104141007/http://www.investorwords.com/2282/hard_goods.html | url-status=live }}</ref> – automobiles, [[Engineering:Home appliance|appliances]], [[Engineering:Electronics|electronics]], [[Engineering:Furniture|furniture]], sporting goods, [[Engineering:Lumber|lumber]], etc., and parts for them. Specialist retailers operate in many industries such as the arts e.g. green grocers, contemporary art galleries, bookstores, handicrafts, [[Engineering:Music store|musical instruments]], gift shops.

==Challenges==
To achieve and maintain a foothold in an existing market, a prospective retail establishment must [[Social:Barriers to entry|overcome the following hurdles]]:
* regulatory barriers including:
** restrictions on real-estate purchases, especially as imposed by local governments and against "big-box" [[Finance:Big-box store|chain retailers]]
** restrictions on foreign investment in retailers, in terms of both absolute amount of financing provided and percentage share of voting stock (e.g. [[Finance:Common stock|common stock]]) purchased
* unfavorable taxation structures, especially those designed to penalize or keep out "big box" retailers (see "Regulatory" above)
* absence of developed supply-chain and integrated IT management
* high [[Finance:Competition (economics)|competitiveness]] among existing market participants and resulting low [[Finance:Profit margin|profit margin]]s, caused in part by:
** constant advances in product design resulting in constant threat of product obsolescence and price declines for existing [[Social:Inventory|inventory]]
* lack of a properly-educated and/or -trained work-force, often including management, caused in part by loss in business{{clarify|date=September 2020}}
** lack of educational infrastructure enabling prospective market entrants to respond to the above challenges
* direct e-tailing (for example, through the [[Internet]]) and direct delivery to consumers from manufacturers and suppliers, cutting out any retail [[Finance:Reseller|middle man]].<ref>
{{cite book
 | last1 = Nicholson
 | first1 = Walter
 | last2 = Snyder
 | first2 = Christopher Mark
 | chapter = Perfect Competition in a Single Market
 | title = Intermediate Microeconomics and Its Application
 | url = https://books.google.com/books?id=Tr4TCgAAQBAJ
 | edition = 12
 | location = Boston
 | publisher = Cengage Learning
 | date = 2014
 | page = 300
 | isbn = 9781133189022
 | access-date = 25 September 2020
 | quote = One question raised by the growth of Internet selling is whether there will remain a separate role for retailers over the long term. If the Internet allows producers to reach customers directly, why would any role for retailing 'middlemen' remain?
}}
</ref>

==Method==
When discussing the impact of technology on shopping and retail, e-commerce is often the first thing that comes to mind for retailers. However, technologies such as big data, artificial intelligence, computer vision and the Internet of Things have used data to transform every part of the shopping experience, from browsing to checkout.<ref>{{Cite journal |last=Wang |first=Cuimin |date=2021-06-17 |title=Analyzing the Effects of Cross-Border E-Commerce Industry Transfer Using Big Data |journal=Mobile Information Systems |volume=2021 |pages=1–12 |doi=10.1155/2021/9916304 |issn=1875-905X|doi-access=free }}</ref>

It is important for organizations to embrace digital disruption in order to gain a competitive advantage. When an industry experiences digital disruption, it typically signals that consumer needs are shifting. Retailers enhance their analytics process and make better informed decisions thanks to big data, artificial intelligence, computer vision, and the Internet of Things. The use of data by retailers is mostly evident in the following aspects, based on the above-mentioned new technologies:{{cn|date=January 2023}}

* Enhance marketing by Personalizing customer experience
* Optimize supply chain management
* Adjust prices to maximize profits

Many leading brands choose to target tourists who specifically travel to shop or spend money while on vacation.  According to the Global Retail Tourism Market Report 2019-2023,<ref>{{Cite web|url=https://view.publitas.com/9460a897-7068-442c-b76b-4e8711cc9b9e/global-travel-retail-market-research-report-and-forecast-to-2019-2023/page/1|title=My publications - Global Travel Retail Market Research Report and Forecast to 2019-2023 - Page 1 - Created with Publitas.com|website=view.publitas.com|access-date=11 April 2023|archive-date=11 April 2023|archive-url=https://web.archive.org/web/20230411145157/https://view.publitas.com/9460a897-7068-442c-b76b-4e8711cc9b9e/global-travel-retail-market-research-report-and-forecast-to-2019-2023/page/1|url-status=live}}</ref> the value of the global shopping tourism market was estimated to be around $1.2 trillion in 2018. The report also forecasts that the market will grow at a compound annual growth rate (CAGR) of 6.7% from 2019 to 2023. In 2023 Kogan Page published a critically acclaimed<ref>{{Cite web|url= https://www.moodiedavittreport.com/changegroup-ceo-sacha-zackariya-publishes-book-on-travel-and-tourism-leadership/.html|title=MoodieDavitt Report|date=5 April 2023}} </ref> book "[https://www.amazon.co.uk/Leading-Travel-Tourism-Retail-Sustainably/dp/1398609501/ref=sr_1_1?crid=26IRSF5THA0ZK&keywords=Sacha+zackariya&qid=1681085236&sprefix=sacha+zackariya%2Caps%2C91&sr=8-1 Leading Travel and Tourism Retail]", which researched in depth the travel retail sector post [[Medicine:COVID-19|COVID]].

==Consolidation==
Among retailers and retails chains a lot of consolidation has appeared over the last couple of decades. Between 1988 and 2010, worldwide 40,788 [[Social:Mergers and acquisitions|mergers & acquisitions]] with a total known value of US$2.255 trillion have been announced.<ref>{{cite web|title=Statistics on Mergers & Acquisitions (M&A)&nbsp;– M&A Courses &#124; Company Valuation Courses &#124; Mergers & Acquisitions Courses|url=http://www.imaa-institute.org/statistics-mergers-acquisitions.html#M&A_Ind_Retail|url-status=dead|archive-url=https://web.archive.org/web/20120106045040/http://www.imaa-institute.org/statistics-mergers-acquisitions.html|archive-date=2012-01-06|access-date=2012-11-02|publisher=Imaa-institute.org}}{{full citation needed|date=November 2012}}</ref> The largest transactions with involvement of retailers in/from the United States have been: the acquisition of Albertson's Inc. for US$17 billion in 2006,<ref>{{cite news|date=January 2006|title=SuperValu-CVS group buys Albertson's for $17B|newspaper=Phoenix Business Journal|url=http://www.bizjournals.com/phoenix/stories/2006/01/23/daily2.html|access-date=9 July 2014|archive-date=12 July 2014|archive-url=https://web.archive.org/web/20140712132025/http://www.bizjournals.com/phoenix/stories/2006/01/23/daily2.html|url-status=live}}</ref> the merger between Federated Department Stores Inc with May Department Stores valued at 16.5 bil. USD in 2005<ref>{{cite web|date=28 Feb 2005|title=Federated and May Announce Merger; $17 billion transaction to create value for customers, shareholders|url=http://phx.corporate-ir.net/phoenix.zhtml?c=84477&p=irol-newsArticle&ID=679294&highlight=|access-date=2012-11-02|publisher=Phx.corporate-ir.net|archive-date=25 June 2017|archive-url=https://web.archive.org/web/20170625175157/http://phx.corporate-ir.net/phoenix.zhtml?c=84477&p=irol-newsArticle&ID=679294&highlight=|url-status=live}}</ref>&nbsp;– now [[Company:Macy's, Inc.|Macy's]], and the merger between Kmart Holding Corp and Sears Roebuck & Co with a value of US$10.9 billion in 2004.<ref>{{cite web|date=29 September 2004|title=Kmart Finalizes Transaction With Sears|url=http://searsholdings.com/press-releases/pr/1249|access-date=2012-11-02|publisher=Searsholdings.com|archive-date=10 June 2016|archive-url=https://web.archive.org/web/20160610190132/http://searsholdings.com/press-releases/pr/1249|url-status=live}}</ref>

Between 1985 and 2018 there have been 46,755 mergers or acquisitions conducted globally in the retail sector (either acquirer or target from the retail industry). These deals cumulate to an overall known value of around US$2,561 billion. The three major Retail M&A waves took place in 2000, 2007 and lately in 2017. However the all-time high in terms of number of deals was in 2016 with more than 2,700 deals. In terms of added value 2007 set the record with the US$225 billion.<ref>{{Cite news|title=M&A by Industries|language=en-US|work=Institute for Mergers, Acquisitions and Alliances (IMAA)|url=https://imaa-institute.org/m-and-a-by-industries/|access-date=2018-02-28|archive-date=3 November 2020|archive-url=https://web.archive.org/web/20201103171956/https://imaa-institute.org/m-and-a-by-industries/|url-status=live}}</ref>

Here is a list of the top ten largest deals (ranked by volume) in the Retail Industry:{{citation needed|date=February 2018}}
{| class="wikitable mw-collapsible mw-collapsed"
|'''Date Announced'''
|'''Acquiror Name'''
|'''Acquiror Mid Industry'''
|'''Acquiror Nation'''
|'''Target Name'''
|'''Target Mid Industry'''
|'''Target Nation'''
|'''Value of Transaction ($mil)'''
|-
|11/01/2006
|CVS Corp
|Other Retailing
|United States
|Caremark Rx Inc
|Healthcare Providers & Services (HMOs)
|United States
|26,293.58
|-
|03/09/2007
|AB Acquisitions Ltd
|Other Financials
|United Kingdom
|Alliance Boots PLC
|Other Retailing
|United Kingdom
|19,604.19
|-
|12/18/2000
|Shareholders
|Other Financials
|United Kingdom
|Granada Compass-Hospitality
|Food & Beverage Retailing
|United Kingdom
|17,914.68
|-
|01/20/2006
|AB Acquisition LLC
|Other Financials
|United States
|Albertsons Inc
|Food & Beverage Retailing
|United States
|17,543.85
|-
|02/26/2013
|Home Depot Inc
|Home Improvement Retailing
|United States
|Home Depot Inc
|Home Improvement Retailing
|United States
|17,000.00
|-
|02/28/2005
|Federated Department Stores
|Discount and Department Store Retailing
|United States
|May Department Stores Co
|Non Residential
|United States
|16,465.87
|-
|08/30/1999
|Carrefour SA
|Food & Beverage Retailing
|France
|Promodes
|Food & Beverage Retailing
|France
|15,837.48
|-
|06/19/2012
|Walgreen Co
|Other Retailing
|United States
|Alliance Boots GmbH
|Other Retailing
|Switzerland
|15,292.48
|-
|07/02/2007
|Wesfarmers Ltd
|Food & Beverage Retailing
|Australia
|Coles Group Ltd
|Food & Beverage Retailing
|Australia
|15,287.79
|-
|06/03/2011
|Wal-Mart Stores Inc
|Discount and Department Store Retailing
|United States
|Wal-Mart Stores Inc
|Discount and Department Store Retailing
|United States
|14,288.00
|}

==Statistics==
===Global top ten retailers===
As of 2016, {{wipe|China}} was the largest retail market in the world.<ref name="www.emarketer.com">{{cite news|title=China Eclipses the US to Become the World's Largest Retail Market&nbsp;– eMarketer|url=https://www.emarketer.com/Article/China-Eclipses-US-Become-Worlds-Largest-Retail-Market/1014364|work=www.emarketer.com|language=en|access-date=25 April 2017|archive-date=9 February 2022|archive-url=https://web.archive.org/web/20220209102906/https://www.emarketer.com/Article/China-Eclipses-US-Become-Worlds-Largest-Retail-Market/1014364|url-status=live}}</ref>

{| class="wikitable sortable" style="width:80%;"
! colspan="6" | Worldwide top ten retailers<ref name=":0">{{Cite web|title=Top 50 Global Retailers 2021|url=https://nrf.com/resources/top-retailers/top-50-global-retailers/top-50-global-retailers-2021|access-date=2021-04-13|website=NRF|language=en|archive-date=15 April 2021|archive-url=https://web.archive.org/web/20210415012054/https://nrf.com/resources/top-retailers/top-50-global-retailers/top-50-global-retailers-2021|url-status=live}}</ref>
|-
!|Rank
!|Company
!|Headquarters
!|2020 total revenue (US$ billion)<ref name=":0" />
!|Business foundation
!|Number of countries of operation 2020
|-
|| 1 ||[[Company:Walmart|Walmart]]||{{flag|United States}}||$519.93
| Hypermarket/supercenter/superstore ||27
|-
|| 2 ||Amazon||{{flag|United States}}|| $280.52|| Ecommerce || 18
|-
|| 3 ||Costco||{{flag|United States}}|| $163.22||Cash & carry/warehouse club ||12
|-
|| 4 ||Schwarz Gruppe (Lidl) ||{{flag|Germany}}|| $133.89||Discount grocery store ||33
|-
|| 5 ||Aldi||{{flag|Germany}}|| $116.06|| Discount grocery store ||18
|-
|| 6 ||JD.com||{{flag|China}}|| $82.86||Ecommerce|| -
|-
|| 7 ||Carrefour||{{flag|France}}|| $82.60||Hypermarket/supermarket||32
|-
|| 8 ||Ahold Delhaize||{{flag|Netherlands}}|| $78.17||Grocery store ||10
|-
|| 9 ||[[Company:Alibaba Group|Alibaba]]||{{flag|China}}|| $71.99||Ecommerce ||7
|-
|| 10 ||IKEA||{{flag|Sweden}}|| $45.18|| Furniture ||60
|}

=== Statistics for national retail sales ===
[[File:US Retail Sales.png|thumb|upright=1.3|U.S. Monthly Retail Sales, 1992–2010]]
====United States====

The National Retail Federation and [[Company:Kantar Group|Kantar]] annually rank the nation's top retailers according to sales.<ref>{{Cite web|title=Top 100 Retailers 2020 List|url=https://nrf.com/resources/top-retailers/top-100-retailers/top-100-retailers-2020-list|access-date=2021-04-13|website=NRF|language=en|archive-date=13 April 2021|archive-url=https://web.archive.org/web/20210413144121/https://nrf.com/resources/top-retailers/top-100-retailers/top-100-retailers-2020-list|url-status=live}}</ref> The National Retail Federation also separately ranks the 100 fastest-growing U.S. retailers based on increases in domestic sales.<ref>{{Cite web|title=Hot 100 Retailers 2020 List|url=https://nrf.com/resources/top-retailers/hot-100-retailers/hot-100-retailers-2020-list|access-date=2021-04-13|website=NRF|language=en|archive-date=13 April 2021|archive-url=https://web.archive.org/web/20210413144121/https://nrf.com/resources/top-retailers/hot-100-retailers/hot-100-retailers-2020-list|url-status=live}}</ref><ref>{{Cite web|title=2020 Top 100 Retailers Chart|url=https://nrf.com/resources/top-retailers/top-100-retailers/top-100-retailers-2020-list|access-date=2021-04-13|website=NRF|language=en|archive-date=13 April 2021|archive-url=https://web.archive.org/web/20210413144121/https://nrf.com/resources/top-retailers/top-100-retailers/top-100-retailers-2020-list|url-status=live}}</ref>

Since 1951, the U.S. Census Bureau has published the Retail Sales report every month. It is a measure of consumer spending, an important indicator of the US [[Finance:Gross domestic product|GDP]]. Retail firms provide data on the dollar value of their retail sales and inventories. A [[Sampling (statistics)|sample]] of 12,000 firms is included in the final survey and 5,000 in the advanced one. The advanced estimated data is based on a subsample from the US CB complete retail & food services sample.<ref>{{cite web|url=https://www.census.gov/retail/index.html|title=US Census Bureau Monthly & Annual Retail Trade|website=www.census.gov|date=2011-07-11|access-date=11 December 2017|archive-date=14 December 2017|archive-url=https://web.archive.org/web/20171214162559/https://www.census.gov/retail/index.html|url-status=live}}</ref>

Retail is the largest private-sector employer in the United States, supporting 52 million working Americans.<ref>{{cite web |title=Estimated March imports at major U.S. retail container ports hit five-year low, declines expected to continue amid pandemic |url=https://portnews.ru/news/294177/ |website=PortNews |date=8 April 2020 |access-date=10 April 2020 |archive-date=23 May 2020 |archive-url=https://web.archive.org/web/20200523011354/https://portnews.ru/news/294177/ |url-status=live }}</ref>
====Central Europe====
In 2011, the grocery market in six countries of [[Place:Central Europe|Central Europe]] was worth nearly €107bn, 2.8% more than the previous year when expressed in local currencies. The increase was generated foremost by the discount stores and supermarket segments, and was driven by the skyrocketing prices of foodstuffs. This information is based on the latest PMR report entitled Grocery retail in Central Europe 2012<ref name="http://www.pmrpublications.com/product/Grocery-retail-Central-Europe-2012">Grocery retail in Central Europe 2012 [http://www.pmrpublications.com/product/Grocery-retail-Central-Europe-2012 Retail in Central Europe] {{Webarchive|url=https://web.archive.org/web/20170702142916/http://www.pmrpublications.com/product/Grocery-retail-Central-Europe-2012 |date=2 July 2017 }}</ref>

====World====
[[File:016 Coca-Cola vending machine at Kyoto Station, Japan - コカコーラ 自動販売機.JPG|thumb|upright|Japan has the largest number of vending machines per capita.]]

National accounts show a combined total of retail and wholesale trade, with hotels and restaurants. in 2012 the sector provides over a fifth of GDP in tourist-oriented island economies, as well as in other major countries such as Brazil, Pakistan, Russia, and Spain. In all four of the latter countries, this fraction is an increase over 1970, but there are other countries where the sector has declined since 1970, sometimes in absolute terms, where other sectors have replaced its role in the economy. In the United States the sector has declined from 19% of GDP to 14%, though it has risen in absolute terms from $4,500 to $7,400 per capita per year. In China the sector has grown from 7.3% to 11.5%, and in India even more, from 8.4% to 18.7%. Emarketer predicts China will have the largest retail market in the world in 2016.<ref>{{cite web|url= https://www.techinasia.com/asia-ecommerce-spending-1-trillion-dollars-2016|title= Asia's ecommerce spending to hit record $1 trillion this year – but most of that is China|first= Steven|last= Millward|date= 18 August 2016|access-date= 18 August 2016|work= Tech in Asia|archive-date= 19 August 2016|archive-url= https://web.archive.org/web/20160819043228/https://www.techinasia.com/asia-ecommerce-spending-1-trillion-dollars-2016|url-status= live}}</ref>

In 2016, {{wipe|China}} became the largest retail market in the world.<ref name="www.emarketer.com" />

In the Republic of Armenia, retail trade has been increasing recently. In October 2022, it increased by 23.1% year by year, which was the most considerable rise since April 2021, faster than the 20.7 per cent increase recorded a month earlier. Retail dropped by 1.9% after accumulating 2.1%in the earlier month. For the first 10 months of 2022, retail sales increased by 15.5% by measuring the exact time of 2021. Among its bordering countries, on retail trade percentage of GDP, Armenia ranks more increased than Turkey, but it is still lower than Georgia.<ref>{{cite web|url= https://www.trade.gov/country-commercial-guides/armenia-fast-moving-consumer-goods|title= Fast Moving Consumer Goods|date= 18 November 2022|access-date= 7 December 2022|archive-date= 7 December 2022|archive-url= https://web.archive.org/web/20221207140710/https://www.trade.gov/country-commercial-guides/armenia-fast-moving-consumer-goods|url-status= live}}</ref>

==See also==

{{Columns-list|colwidth=22em|
* Automated retail
* [[Finance:Direct-to-consumer|Direct-to-consumer]]
* [[Business-to-business]]
* [[Business-to-government|B2G]]
* [[Finance:Consumer behaviour|Consumer behaviour]]
* Department store
* Final goods
* Grey pound
* [[Organization:Hanseatic League|Hanseatic League]]
* High Street
* History of marketing
* [[Finance:Like for like|Like for like]]
* List of department stores by country
* Point of sales
* Sales promotion
* Retail concentration
* [[Social:Retail design|Retail design]]
* [[Retail software]]
* Retailtainment
* Revenge buying
* [[Finance:Sales density|Sales density]]
* Shelving engineering
* Shopping
* [[Social:Store manager|Store manager]]
* [[Social:Visual merchandising|Visual merchandising]]
* Licensed victualler
* Wardrobing
* Window shopping
}}

==References==
{{Reflist}}

==Further reading==
* Adburgham, A., ''Shopping in Style: London from the Restoration to Edwardian Elegance'', London, Thames and Hudson, 1979
* Alexander, A., "The Study of British Retail History: Progress and Agenda", in ''The Routledge Companion to Marketing History'', D.G. Brian Jones and Mark Tadajewski (eds.), Oxon, Routledge, 2016, pp.&nbsp;155–72
* Feinberg, R.A. and Meoli, J., [Online: [http://acrwebsite.org/volumes/7196/volumes/v18/NA-18|"A A Brief History of the Mall] Brief History of the Mall"], in ''Advances in Consumer Research'', Volume 18, Rebecca H. Holman and Michael R. Solomon (eds.), Provo, UT: Association for Consumer Research, 1991, pp.&nbsp;426–27
* Hollander, S. C., "Who and What are Important in Retailing and Marketing History: A Basis for Discussion", in S.C. Hollander and R. Savitt (eds.) ''First North American Workshop on Historical Research in Marketing'', Lansing, MI: Michigan State University, 1983, pp.&nbsp;35–40.
* Jones, F., "Retail Stores in the United States, 1800–1860", ''Journal of Marketing'', October 1936, pp.&nbsp;135–40
* {{cite book |editor1-last=Krafft |editor1-first=Manfred |editor2-last=Mantrala |editor2-first=Murali K. |year=2006 |title=Retailing in the 21st Century: Current and Future Trends |publisher=Springer Verlag |location=New York |isbn=978-3-540-28399-7}}
* Kowinski, W. S., ''The Malling of America: An Inside Look at the Great Consumer Paradise'', New York, William Morrow, 1985
* Furnee, J. H., and Lesger, C. (eds), ''The Landscape of Consumption: Shopping Streets and Cultures in Western Europe, 1600–1900'', Springer, 2014
* MacKeith, M., ''The History and Conservation of Shopping Arcades'', Mansell Publishing, 1986
* Nystrom, P. H., "Retailing in Retrospect and Prospect", in H.G. Wales (ed.) ''Changing Perspectives in Marketing'', Urbana: University of Illinois Press, 19951, pp.&nbsp;117–38.
* Stobard, J., ''Sugar and Spice: Grocers and Groceries in Provincial England, 1650–1830'', Oxford University Press, 2016
*Underhill, Paco, ''Call of the Mall: The Author of Why We Buy on the Geography of Shopping'', Simon & Schuster, 2004

==External links==
* [http://ecr-all.org/ ECRoPEDIA&nbsp;– Free Global Collection of Retail/FMCG Best practices by ECR Community]
* [http://www.investopedia.com/features/industryhandbook/retail.asp Investopedia.The Industry Handbook: The Retailing Industry]
* [http://www.nrf.com/National-Retail-Federation National Retail Federation] (U.S.-based trade association)

{{Business marketing}}

[[Category:Marketing strategy]]

{{Sourceattribution|Retail}}