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What is Retail? A Comprehensive Explanation

Retail is one of the most important economic sectors in Germany and has enormous economic significance. In theory, all trading companies that purchase goods and sell them directly to end customers are referred to as retailers. 

Most people are familiar with retail jobs , but what exactly is behind the term retail? In this article, we will give you an overview of the different types of sales that exist in retail and what else is involved. 

Is it still worth selling in retail in 2025?

Basically, retail is a versatile form of sales that still has great economic relevance. Whether through stationary retail, mail order or e-commerce, retail accompanies us in many aspects of our everyday lives and so it will still be worthwhile for retail companies to sell in retail in 2025.

Definition: What is retail? 

Retailers do not produce their goods themselves, malaysia email list but purchase them from wholesalers or manufacturers. Customers do not pay the manufacturing price, but the retailer increases the price of the goods in order to make a profit. Retailers make a pre-selection for customers, put these together in their range, and thus make it easier for consumers to choose.  

Retail is therefore the last sales stage along the value chain. The focus on the end customer or end consumer is of crucial importance. Wholesale can be distinguished from retail in that it sells predominantly to corporate customers and is therefore one sales stage before retail.  

The most important sectors in retail include clothing, what is content marketing for e-commerce? food, and services such as hotels or restaurants – the spectrum ranges from small boutiques to huge shopping centers. The term is often used synonymously with brick-and-mortar store sales. However, strictly speaking, online retailers such as Amazon also belong in this category.  

retail business types 

Retailers can run their businesses in different business forms. The basic distinguishing features include:  

  • brick-and-mortar retail
  • Itinerant trade
  • mail order business
  • e-commerce

brick-and-mortar retail 

The most common form of retail operation is stationary sales. Retailers who choose this form of operation sell their goods in fixed sales rooms. These include boutiques,  drugstores, and even shops in gas stations. 

mobile retail 

Itinerant (or mobile) trade includes retail businesses that sell from stalls, for example at a Christmas or weekly market. In this case, china phone numbers itinerant means that the retailers can operate their sales outlets at different locations as needed – in other words, they sell regardless of location.  

mail order business 

In mail order, customers only purchase products via orders. The retailer does not offer stationary or mobile sales. Goods are mainly sold in catalogs, advertising brochures or brochures. Shipping is done via post. 

e-commerce 

E-commerce is a modern form of mail order . Retailing via e-commerce takes place via online platforms such as online shops where customers can order goods. E-commerce retailers often do not operate stationary or mobile sales outlets. 

Reading tip: 5 retailers show how to successfully combine e-commerce and retail .

A distinction is further made between the different types of retail operations:

  • specialty stores
  • specialty stores
  • department stores
  • discounters and supermarkets
  • supermarkets and shopping centers
  • corner shops

These types of business differ primarily in the range of products offered and the size of the trading company or the sales area. 

Corner shops, for example, offer a wide range of products in a small sales area. Specialist shops always limit themselves to a certain group of products. Supermarkets, department stores and shopping centers offer a wide range of products in a large sales area. 

How is the retail sector structured? 

Retail is the sales level between wholesalers and consumers. The range of products is selected by retailers and made available to end customers for purchase in the appropriate quantities. 

As a retailer, you can join a large retail chain as a franchise or open your own store. Small retailers are usually found regionally, while larger retail chains are represented nationwide or internationally. 

The important areas in retail include the warehouse, the sales area, the checkout area and also the logistics component. Goods must be selected, ordered, shipped, unloaded and put away – all of these processes must run smoothly so that the shelves and vending machines are always well stocked. 

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