Understanding Retail And The Industry Marketing Essay


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The factory shop is attached to a factory. A factory shop normally sell imperfect produced in the adjacent factory. In other words goods that may not be satisfactory produced in nearby factory. For example, The original factory shop offering a wide range of merchandise Ladieswear, Menswear, Kidswear, Sportswear, Football, Electricals, Housewares, Toys and Gifts, Beauty and Fragrance - all discounted. Much of what they sell is either branded or is originally made for other high street stores and supermarkets.

Organisation providing high proportion of services emphasis on providing effective marketing mix, such organisation includes banks, estate agents, cafes e.t.c. however product retailer emphasis not as much as service providing organisation. It is because service can exists within customer and organisation for long time such as Tenants and agents and therefore the agents has to provide effective service to convey customer and not loss it, on the other hand retailer selling cable electrical products, if once sold to customer then it will be used as long as the fault becomes. Therefore the service can exist for a long time where as providing products can be flexible and quick.

Retailers can be classified from variety of viewpoints, for example higher number of employees and sales turnover is indication of a tall structured organisation. There are other factors as well such as the size and product strategy, for example very large stores such as ASDA and Morison's selling a full range of food and non food products. In the UK 11% of all enterprises are retailers operating from around 280,000 retail outlets.

Local shops are located and serve suburban areas or smaller towns. They generally consisted of significant number of stores. The aim of such stores is to provide flexible shopping for consumers in a given locality enabling them to shop close by where they live rather than having to travel far away.

There are huge regional shopping complexes located in several out of town sites in the UK. They have more attraction than shopping mall on large scale, these provides wide range of facilities such as restaurants, cinema, cash points as well as train stations and motorway access. Other out of town includes stores such as Comet, Dixons, Pc World, MF and B&Q. The reason for such stores is that it is easy to park, prices are competitive and the size of these stores is huge means a great variety of goods is on sale.

Independent retailers are organisation with fewer then ten branches. Independent retailers tend to offer specialist range of products for example medicines, they also sell a range of products including groceries household goods, wine and spirits.

Multiple retailers are organisation with more than ten branches. Some multiples are classified as specialist such as Burtons for clothing. Multiple variety stores like Boot s and Mark & Spencer offer wide range of food. These stores tend to be in busy shopping areas and the prices tend to be relatively low.

Voluntary chain retailers choose to buy most of the stock from the certain wholesalers whose price tends to be relatively low due to their buying power such as SPAR.

Franchised retailers are granted the rights in a geographical area. In simple words, it is legal right given to a person who wishes to run the branch of established business or organisation an example would be Mc Donald or KFC. The franchisee pays a fee based sales or even agrees to buy supplies from the franchisor.

Structured of the retail industry

The structured of the retail industry has become more diverse due to expansions of brands in different type of location. The structure of retail can be noticed from number of perspectives such as the size and profitability, Trends in sale and other aspects.


The size of UK retail industry continues to grow but not as rapid as it was from year 2000 to 2007. This is due to competitive market and economic turmoil in the current environment which is forcing industry size to be limited or even reduce it as the sales begin to slump.

Trends in sales

Form the past two year the retail sales have fallen dramatically due to the affect of recession on their sales, some retailers have reported of 10% sales being fallen. This has reduced the growth rates of the UK retailers. UK retail sales values fell 0.1% on a like-for-like basis from August 2008, however Retail sales in central London in November were 13.3% higher on a like-for-like basis than a year ago, when sales had fallen 0.4%, as financial turmoil hit consumer confidence especially in the City. This shows the glowing picture of sales.


The formula for better profit is high sales and similarly low sale contributes to low profit. The retailers from across the country have reported improved sales from the last three years this means presumably healthy profit. however it can't be neglected that the uncertainty still remain in the British economy. But for the mean time the retailer are enjoying the volume of profit.

Store size and location

Some of the retailers such as Tesco have expanded in terms of the size and location. The management have made changes into physical structure enlarging it even further in some of the stores. Tesco have also begun to deploy stores in community such as Tesco Express in local community where the local shops are also operating. In general, it is noticed that retailer are committed expand the physical size as well as location such as retail park to provide maximum access to consumers.

Not-for-profit and public place retailers

There has been a growth in not for profit retailers such as Oxfam, Cancer research. They sell goods brought in by donors and use voluntary staff. The growth can be as people are becoming aware of their aims and objectives and thus feel compassionate towards their cause.

Public retailers also have common variety of diverse venues, for example there has been noticeable rise in the products available from vending machines as it provide more services such as hot drinks. Similarly, there has been increased in retailers in main rail station for example, WHSmith is a common sight at many UK rail stations.

Employment characteristic

The retail industry employee approximately 3 million people, over the last five years employment in retailing has grown by 141,000. However, from the last year there has been decline in retail employment due to economic turmoil and the demand of employment has reduced significantly.


In this assignment, I have defined the term 'retailing' described how the retail industry is organised through many ways and places in which retail is conducted and I have described the changes that are taking place in the industry structure

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