Functions of retailers

Functions of retailers

A retailer performs the following functions:

1. Market survey / market research A retailer is required to perform a survey about consumer preference, that is, what they like and what they don't like.
2. Buying After making a survey about consumers' preferences, he must buy for them. He must be a good buyer who buys goods of quality and at a fairly cheap price.
3. Transport A retailer arranges for transfer of goods from the supplier's warehouse to his premises, or sometimes he can arrange transport of goods from his shop to his customers' place.
4. Storage The retailer keeps goods for later use or delivery in order to avoid damage, oversupply or scarcity.
5. Breaking bulk (Bulk breaking) This means buying in large quantities and selling in small quantities.
6. Selling He sells goods to consumers, usually in small quantities.
7. Advertising After storing the goods, he is able to inform consumers about what products are available in the shop.
8. Display and advice He displays his goods in order to give his customers the opportunity to select the one most suitable to them.
9. Selling and sales promotion He is required to sell his goods to his customers together with giving an activity or motivation.
10. Financing The retailer acts as a finance provider through providing credit facilities (by allowing credit).
11. Stock control and book keeping He is expected to keep books of record regarding the receipt and closing balance of stock in terms of quantities. Also, he has to keep the books of account in order to control the movement or other terms of money.