Role of Retailer in distribution channel

The role of the retailer in the distribution channel

1) Retailers

A retailer is different from the rest of the elements of the supply chain because only the retailer directly interacts with the end-consumers and sell them goods. You must have observed while shopping that there are different types of retailers. The difference can be made on the basis of the shapes and sizes of the retail stores. Therefore, retailers can be grouped together on the basis of one of the following categories.

2) Ownership

The retail store which is made of brick and mortar irrespective of its size and shape can be categorized as a national chain store, regional chain store, or a franchise.

3) Pricing Philosophy

Retail stores can be classified on the basis of their pricing style. For example, there can be stores which sell productsat discounts and there are some stores which sell products at full prices. The stores which sell products on discount have several categories such as consignment stores, factory outlets, specialty discount stores, dollar stores, warehouse membership clubs, etc.

4) Product assortment

The product lines sold by a store depends on the ownership of the store. take the example of an Ann Taylor store. this store sells branded clothes. There are not many types of clothes sold in the store. but it sells the extensive style of products in existing categories. On the other hand, Kmart sells clothes from different brands but it does not have a various variety of clothes of all brands.

5) Service Level

Exclusive and specialized stores provide more types of services such as store-named credit cards, liberal return policies, on-site alterations to their loyal customers.

Functions performed by retailers

1. Offers Two-ways communication.
2. Offers personal services to customers.
3. Commence physical movement and storage of goods.
4. Facilitates grading and standardization.
5. Stock goods to supply to customers on immediately.
6. Assembles goods from various sources.
7. Create demand by the window display.
8. Extend credit facility.