Retail

The Retail Trade sector comprises establishments engaged in retailing merchandise, generally without transformation, and providing services incidental to the sale of merchandise.

The retailing process is the final step in the distribution of merchandise. Retailers are, therefore, structured to sell merchandise in small quantities to the general public. This sector consists of two main types of retailers: store retailers and non-store retailers.

Retailing has mirrored the increasing prominence of the retail industry, providing essential services and making a positive contribution to the economy.

The importance of retailing:

1. Retailing shapes modern lifestyles
   Retailing is an integral part of modern society. It shapes the way of life. In the past, the trading of goods was a part of traditional society. However, in recent times, the buying and selling of goods have become a brand-dominated activity.
2. Retailing contributes to the economy
   The importance of the retail sector is reflected in its contribution to the growth of the economy. Its contribution is much more visible in the modern era than it was in the past. As the retail sector is linked to a significant portion of the economy, its contribution to GDP is substantial. Retailing is the driving force of the economy and aims to promote its sustained growth.
3. Retailing dominates the supply chain
   Goods and services flow from manufacturers or service providers to consumers. When consumers are large in number and widely distributed, the role of retailers becomes crucial. Retailers serve as a connecting link between wholesalers and consumers. Due to their dominant position in the supply chain, the retail structure has steadily developed over the years.
   Today, retailing is characterized by large multiple chains rather than small-scale independent retailers. The formalization and growing importance of retailing have made it powerful within the distribution channel. Retailers are now compared with manufacturers, which indicates the growing dominance of retailers within the supply chain.
   The annual turnovers achieved by retailers can be compared with the largest companies in other service industries.
4. Retailing is interdisciplinary
   The pace of growth within retailing is accelerating. Retailing has emerged from several interrelated disciplines, such as geography, economics, management, and marketing.
5. Retailing is recognized as an academic field
   Retailing is an accepted area of academic debate, alongside marketing and management, and has fully developed as an area of study. University research centers focus on retailing, and professional appointments in retailing have been made. Academic journals focusing on retailing are being published worldwide.
6. Retailers are major employers
   Today, retailers are major employers. It is estimated that in developed countries, the retail industry employs one in nine members of the workforce. Retailers employ a significant proportion of the overall workforce.
   More than two-thirds of the retail workforce are women. Also, more than half of retail employees are employed on a part-time basis. This highly flexible workforce can adapt to varying labor demands. In the past, retail employees earned lower pay and had longer working hours. However, the retail sector is now becoming more organized with better pay scales.
   
7. Retailers are gatekeepers in the distribution channel
   Retailers are becoming increasingly important in their role as gatekeepers within the distribution channel. In the past, suppliers were dominant. Retailers supplied the merchandise that was available, and consumers selected from it. As retailers have become significantly more powerful, they are able to influence suppliers and stock only the brands they wish to sell. Consequently, consumers can buy only what is stocked and offered to them by the retailers. Retailers are thus considered to shape consumer demand.
8. Retailing is expanding internationally
   Retailing offers the opportunity to shift operations outside the home market. Retailers who focusing on luxury goods are expanding their businesses internationally. They are moving into more geographically and culturally distant markets.

Trends in retail:

1. Deep retail and hyper-personalization. Deep retail leverages extensive customer insights to create highly personalized shopping experiences, while hyper-personalization uses real-time behavioral data to deliver tailored products, services, and communications.
2. Consumers get price-savvy. Consumers are more price-savvy than ever, prioritizing value, convenience, and experience while leveraging extensive research and reviews to make informed purchasing decisions.
3. The rise of voice. Smart speakers and voice assistants are transforming consumer behavior, driving explosive growth in voice-controlled shopping and reshaping retail engagement.
4. Experiential retail. Experiential retail is the future, as consumers prioritize memorable experiences over material purchases, driving retailers to create immersive shopping environments.
5. Planet friendly. Sustainability is essential in retail, as consumers prioritize brands with genuine social and environmental commitments over mere marketing claims.
6. Social currency. Social media drives brand engagement, with consumers relying on community and word-of-mouth over ads for purchasing decisions.
7. Service provider. Platforms create value by connecting interdependent groups, leveraging scalable networks, and reshaping retail through data-driven solutions.