Within a product’s distribution circuit, several players are present.
At the very beginning of the chain is the producer or importer, who manufactures or imports the product for sale; at the very end is the retailer, who sells to the end consumer. Between the two is the wholesaler, who acts as a link between the producer and the retailer.
The retailer is therefore a retail merchant who sells goods, either individually or in small quantities, directly to their customer. They are the final link in the distribution chain.
This professional can be an independent store or business, a large distribution chain, or a salesperson without a physical sales area, involving different strategies like online-only, brick-and-mortar, or brick-and-click (also referred to as click-and-mortar) business models. Retailers can take many forms, such as the following:
- Convenience stores: Generally referred to as “small” independent retailers, these offer their products in their own stores. They sell mainly in close proximity to their customers. Bakeries, delicatessens, cheese shops, florists, grocery stores, mini-markets, ready-to-wear boutiques, etc. are all run by retailers.
- Large stores: Department stores, supermarkets and hypermarkets, specialized superstores, and factory outlets are also retailers. These chains sell their products to customers individually or in small quantities, and they have a wider catchment area than convenience stores.
- Distributors without a sales area: Retailers can also sell products to end consumers via other channels, such as mail-order, drive-through, or ecommerce platforms.
Retailers are professionals who are expected to provide exceptional service to their customers, and this is where they differ from wholesalers.
The retailer’s mission is to address the end consumer, offering products by the unit or in small quantities.
In some cases, however, these two activities are combined. A wholesaler may in fact be involved in retail sales on an ancillary basis, and vice versa.
The term “retailer” is also used to describe a professional selling their products at a fair, market, or via a food truck.
As well as selling products, retailers can also provide services. Some electronics or household appliance dealers, for example, offer insurance, delivery, or repair services to their customers.
