Retailing career can be quite rewarding right from the start of the career for a person as it may require bearing a handling a lot of challenges and responsibilities right from the beginning. A retailer’s service also helps to enhance a product’s image. They store merchandise, mark prices on it, place items on the selling floor and otherwise handle products; usually they pay suppliers for items before selling ,,them to final customers. This dual role is both the justification for retailing and the key to success in retailing. In turn, factories must manufacture the goods for the retailers. Your email address will not be published. Hence, it can give a strong competitive advantage. Kimberly Amadeo has 20 years of experience in economic analysis and business strategy. ( Log Out / Today, retailing has become the largest single industry in the world in terms of the number of people employed. That's called "keystone markup." Retailers can sometimes make more money if they bypass the wholesaler and purchase directly from the factory. Right from accessibility to convenience, retail has different levels of importance in the life of the customer. Importance of the Retail Industry to the U.S. Economy In 2018, the U.S. retail industry generated $5.3 trillion in sales. Thus, consumers can keep a smaller inventory of products at home because they know local retailers will have the products available when they need more. Retailing has become an intrinsic part of our daily lives. Retailers acquire products and services from different places and. Accessed July 6, 2020. Research & Information: The retailer provides useful information across the supply chain. While meeting the needs of customers, following are some of the functions performed by a retailer: Customer Convenience: Perhaps the most important role of bringing the ready to be consumed goods to the doorstep of the consumer is performed by the retail community. The importance of Retail industry self-established in the life of customers. The retail fraternity should give importance to the cultural differences and also the differences in the values, beliefs, and faith of people while formulating their marketing strategies and business development plans. Retailing is one of the most important industries in the world and plays a predominant role in economic development of the country. By using The Balance, you accept our. U.S. Census. A successful retailer as a merchant who sells goods that won’t come back to customers who will. When consumers purchase goods, retailers must order more goods to replenish their stock. Retailers provide a vital link between producers and ultimate consumers. In turn, factories must manufacture the goods for retailers. They should the reach people for whom they are meant for. Axios. State University of New York College at Buffalo. Stop Shopping in Stores, Consumers Plan to Spend Money on Halloween Despite Pandemic, How Retail Sales Help You Understand the Economy. Residents were asked to shelter-in-place to reduce the spread of the highly-contagious Coronavirus. Accessibility: Products and services have no value for consumers until they are acquired and used by the customers. Why Discounting is Ruining the Retail Industry? Retailing has become an intrinsic part of our daily lives. This season includes Cyber Monday, the biggest day of the year for online sales.. Retail is how producers of goods and services get their products to the consumer. They complete transactions by using appropriate locations, and timings, credit policies, and other services e.g. Email . The median pay was $12.23 per hour in 2019. This encourages social responsibility behavior by the corporates where public welfare programs get funded by a certain percentage of purchase prices of the company's products. Consumers benefit from retailing is that, retailers perform marketing functions that makes it possible for customers to have access to a broad variety of products and services. "Employment Situation Summary Table B." Convenience Stores operate over extended hours through the week and give customers greater flexibility and choice. What is a retailer? They complete transactions by using appropriate locations, and timings, credit policies, and other services e.g. The Journal of Retailing is devoted to advancing the state of knowledge and its application with respect to all aspects of retailing, its management, evolution, and current theory.