What is a retailer?

Retailers are one of the parts or links in the chain of distributionof an item or product. The distribution chain is the path that a product travels from the start of its manufacture until it reaches the consumer. Within this chain, the retailer is the intermediary between the wholesaler and the final consumer. Being therefore the one who makes the direct sale to the consumer or user.

Retailers are often said to be those who buy at retail. Retailers are also called retailers.

As part of a commercial distribution chain, the retailer performs a series of tasks, such as the purchase of products from the wholesaler and the necessary negotiations with him and the distributors; the maintenance of the stock necessary to develop its operations; the promotion and sale of its products, as well as the advice and attention to the end consumer even after the sale.

Types of retailers

Retailers can be classified based on various criteria, such as the type of product they sell, the ownership relationship they have with the business, or their mode of operation in the distribution chain:

Product type

Retailers based on the type of product they sell. They can be classified into eight types:

  • Alimentation and drinks.
  • Textile and leather.
  • Droguería y farmacia.
  • Vehicles.
  • Lubricants and fuels.
  • Equipment for the home.
  • Other types of businesses.
  • Big surfaces.

Property relationship with the business

Based on the ownership relationship that the retailer maintains with the business:

  • Own or independent.
  • Franchise.
  • Chain of establishments.
  • Assimilated establishment.
  • Grupo de buy.

Type of action

Depending on its type of action or operation in thedistribution channel, we have the retailers classified in:

  • Specialized trade.
  • Traditional trade.
  • Self service.
  • Trade open 24 hours.

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