LESSON 1/ RETAILING

LEARNING MODULE 1
SUBJECT: Retail Management
LEVEL/QUARTER: Second Semester/PRELIM
SCHOOL YEAR: 2021-2022
SUBJECT TEACHER: EDDIE U AGBAYANI JR.| Computer Teacher

INTRODUCTION
Here are five fun facts about retail:
 Believe it or not, shopping is a learnt skill aided by POS, product packaging
and in-store signage and requires shoppers to process information in order
to get what they need.
 Shoppers feel more comfortable buying products from an emptier shelf as
it means lots of other people have also bought the product.
 Comfortable customers mean more sales
 Lunchtime and dinnertime shoppers are likely to spend more in store.
After all, we all know the stomach is in control of the mind!
 Window displays can make the difference between a customer walking into
your store or straight past it. I think it’s safe to say that we all want that
42% increase in sales.
Ask anyone who is in retail what the three most important things are and they
will invariably trot out the trite words, “position, position, and position”. Of
course this is not true but is merely used as a figure of speech to emphasise the
importance of position. What is a good position for some retailers can be a terrible
location for others and vice versa.

In this module you will be able to learn retail industry, concepts and processes
and an opportunity to understand the areas of accountability for a Retail
Manager. The learner will also be able to determine a level of interest in pursuing
a career in retail management.

STANDARDS:
In this module, you are expected to:
 Learn about the ever-changing retail landscape
 Identify different types of retail businesses
 Know the importance of retailing
 “IF YOU ALWAYS DO WHAT IS EASY AND CHOOSE THE PATH OF LEAST
RESISTANCE, YOU NEVER STEP OUTSIDE YOUR COMFORT ZONE. GREAT
THINGS DON’T COME FROM COMFORT ZONES”
Roy T. Bennett, The Light in the Heart

RETAILING

WEEK
WHAT IS THE IMPORTANCE LESSON

1-2 OF RETAILING? 1
ACTIVITY 1
Write words or phrases that corresponds with the word inside the circle.

5 2

Retailing
Management

4 3

DISCUSSION AND SUMMARY

RETAILING. is a distribution process, in which all the activities involved in
selling the merchandise directly to the final consumer (i.e. the one who intends
to use the product) are included. It encompasses sale of goods and services from
a point of purchase to the end user, who is going to use that product.
Any business entity which sells goods to the end user and not for business use
or for resale, whether it is a manufacturer, wholesaler or retailer, are said to be
engaged in the process of retailing, irrespective of the manner in which goods are
sold.
Retailer implies any organization, whose maximum part of revenue comes from
retailing. In the supply chain, retailers are the final link between the
manufacturers and ultimate consumer.

WHAT IS THE IMPORTANCE OF RETAILING?

Read the statement of a business owner below:

Tied into this is the question of traffic. The more the better? Wrong. Too much
traffic can be a bad thing. Years ago I commented on an accessory store at a
busy railway station. The retailer thought the traffic would result in fabulous
sales, but this did not materialise. Lots of people in lots of hurry.
This week I came across some interesting figures sent to us by a client.

They have two stores in quite different locations. One is in a busy major shopping
centre where they are naturally paying rent accordingly. The other is in a quiet
neighbourhood shopping centre facing onto the street.

Sales forecasts are about 25 percent higher for the shopping centre location,
although the other shop is catching up fast and will finish January 35 percent
higher than its sister store.

But the interesting statistics are those concerning transactions and units.

Over the past six months, the shopping centre shop achieved sales 17 per cent
higher than the street shop, however, there were 88 per cent more transactions
and 50 per cent more units sold. Other factors aside (such as rent), the street
shop is clearly far more efficient. Not only are there selling staff savings, but also
significant savings in handling goods in and out of the store.

While the shopping centre shop is still more profitable, the gap is narrowing and
if sales continue the way they are at present for the street shop, the tables will
turn. Salaries as a percentage of sales are consistently higher in the shopping
centre shop.

What this example suggests is that one must be careful when the landlord offers
a shop in a ‘better’ position with more traffic. It may happen that a ‘worse’ store
with less foot traffic but easy access to the car park, may be a better bet.

Or that being in a shopping centre is not the best alternative at all.

Position, position, position is important but it doesn’t mean that the best position
is the best position.

For today's producers, the importance of retail marketing cannot be overstated.

Retail stores play an important part in exposing companies to a large audience
and distributing goods widely. Retailers have ways to engage with buyers in
shops (the ultimate consumers of your products).

You should also sell brands to them and give them opportunities to access and
compare products before making a buying decision.

THE IMPORTANCE OF RETAILING

1. Sales to Ultimate consumers of the products
The products and services are sold to ultimate or final buyers in a retail sale.
During this sale, the goods are not resold. The goods and services sold here can
be used for various uses, including residential, household, and industrial use.
As a result, the producer will now engage with his customers through the store
and learn about their opinions.

2. A convenient form of selling quantity-wise

The term "retail" refers to breaking down items into small parts and reselling
them. The products are purchased in bulk from the middleman or producer by
the merchant, and the majority is separated into small amounts and sold to
customers according to their needs.

To do so, the retailer will repackage items in different quantities and types,
making it easier for customers to pick and take them along.

3. Convenient Place and Location

Retailer shops are often located in areas that are easier for customers to access.
A retail store can take several different types, such as a coffee shop, a small
store, or a multiplex. Consumers can buy and sell goods via the internet and
smartphone apps at their leisure.

Furthermore, due to advancments in technology and delivery systems, shopping

online is becoming a modern trend. As a result, a growing number of businesses
are moving their operations online, allowing consumers to access and purchase
goods from the convenience of their own homes.

4. The lifestyle of the people are shaped by retailing

Retail is an essential aspect of today's culture. People rely heavily on retail stores
to live comfortably. Previously, products and services were made available by the
trade mechanism.

However, nowadays, commerce has been replaced by the purchase and sale of
commodities, making retail shops an integral part of society.

5. Retail businesses contribute to the economy

The retail industry is a noteworthy contributor to the Gross Domestic Product
(GDP) in many countries. Its contribution has increased significantly in recent
years and continues to grow at a rapid pace. Retailing is a significant economic
power to promote long-term development.

6. Retail dominates the supply chain

Goods and services flow from a retailer or a distribution supplier to final
customers in a supply chain. Where there are many consumers spread globally,
the position of retail stores becomes even more critical. Retailers serve as a
conduit between a producer and the end customer.

The organization of retail stores has steadily changed over time due to their
critical importance in the supply chain. Vast numerous chains, not small scale
local retail outlets, define retailing in today's world. Retailing has become a
dominant part of the supply chain as its value and formalization have grown.

Furthermore, retailers are being compared to distributors, demonstrating

retailers' domination in the distribution chain. Again, the annual turnover of a
few supermarkets, such as Wal-Mart, is far higher than the annual turnover of
businesses.

All of these factors indicate that retail is the essential component of the whole
supply chain.

7. Retail is interdisciplinary
Economics, geography, management, economics, and marketing have also
played a role in the development of retailing. Economics helps manage a store's
finances. A strong understanding of geography is essential for selecting the best
location for a shop.

Management is crucial in handling your employees and inventory, and proper

promotion is equally vital in helping you get into the market.

8. Retailers provide maximum employment

The supermarket industry now hires the most workers. According to estimates,
the retail sector employs one out of every nine people. Furthermore, women make
up two-thirds of the overall retail population, and more than half of all retail staff
work part-time, giving jobs the freedom to respond to the demands of any
employer.

In the past, employers were paying pitiful wages. As a result, workers in the
supermarket industry worked on a contract basis. However, as working
conditions and delivery in the retail industry improve, many people consider
retail employment a long-term occupation.

9. Retailing is a vital subject area of study

Because of the popularity of retailing, it is receiving an increasing amount of
attention. Retail is a distinct field of study from management and marketing. To
help this industry thrive, studies have been done, and experts have been
recruited.

Furthermore, scholarly journals focusing on retailing are distributed all over the
globe.

10. Retailing offers scope for development in other countries

Retail offers a fantastic chance to reach into new markets around the world. A
merchant who wishes to expand their market by distributing their items in other
countries opens shops in other countries to maximize the number of people who
buy their merchandise.
However, expanding the company is problematic because it necessitates many
documentation and formalities to obtain permission to operate in other nations.

11. Retailers rule the channel of distribution

Retailers are taking control of a delivery system. Since the industry had a small
range of vendors in the past, suppliers held much power. Retailers have no
choice but to buy products from the retailer and sell them in their shops. In
today's world, though, there are many vendors for a single category of
commodity.

As a result, a retailer can choose the brands to carry in their stores, and
customers can purchase items from the retailers' stock. As a result, retailers play
an essential part in influencing market demands.

12. Provides Comfort and facilities for shopping

Shopping has been a pleasurable activity thanks to the many amenities and
conveniences offered by department stores, shopping centres, multiplexes, and
other establishments. People no longer see shopping as a chore but rather as a
stress-relieving and family game.

The significant supermarkets provide a variety of amenities such as air

conditioning, parking, attractions, a children's play area, lifts, shopping trolleys,
and grocery services, among others, and mobile retailing means that all orders
made via the platform or mobile applications are delivered to the customer's
doorstep.

13. Provide services to the manufacturer

The merchant is the last link in the supply chain and the person who deals with
consumers. As a result, he can learn about clients' opinions and their likes and
dislikes. This knowledge is gathered by the retailer and shared with the producer.

This enables the manufacturer to make the necessary adjustments to the

product's quality and expand its offerings to please its clients. As a result, a
supplier is critical in assisting the producer in increasing sales production.

14. Provision of warehousing and storage

For a retailer, warehousing is a significant issue. A supplier purchases products
in bulk from the producer, alleviating the manufacturer's warehousing and
storage issues.

Furthermore, by showcasing products attractively in the department store, the

retailer aids in increasing product purchases.

15. Advantage of an expert and specialist

Retailers are veterans who have sold goods to consumers before. Because of his
frequent contact with clients, he has a great understanding of their preferences
and dislikes. He keeps merchandise on hand to meet the needs of consumers
and sells them in various sizes and shapes.

Furthermore, with their sales skills and product awareness, they support
consumers in selecting the best product for them.

16. Creates utilities and value

By providing a place, time, and utility in the delivery of products, the retailer
raises the value of the commodity. Retailers purchase goods in large amounts
and split them down into limited quantities to sell in small packets. He generates
type utilities in this manner.

Products made in one part of the globe are consumed in other parts of the world.
He purchases goods from suppliers and resells them in the local market, thus
generating utility for the place.

The merchant purchases goods in advance, place them in his store and sell them
to customers as required. The utility value of commodities is improved by
producing these three items. The retailer ensures that things are produced and
consumed daily.

TYPES OF RETAILING
 Store Retailing: Department store is the best form of store retailing, to
attract a number of customers. The other types of store retailing includes,
speciality store, supermarket, convenience store, catalogue showroom,
drug store, super store, discount store, extreme value store. Different
competitive and pricing strategy is adopted by different store retailers.
 Non-store Retailing: It is evident from the name itself, that when the selling
of merchandise takes place outside the conventional shops or stores, it is
termed as non-store retailing. It is classfied as under:
 Direct marketing: In this process, consumer direct channels are employed
by the company to reach and deliver products to the customers. It includes
direct mail marketing, catalog marketing, telemarketing, online shopping
etc.
 Direct selling:Otherwise called as multilevel selling and network selling,
that involves door to door selling or at home sales parties. Here, in this
process the sales person of the company visit the home of the host, who
has invited acquaintances, the sales person demonstrate the products and
take orders.
 Automatic vending: Vending machines are primarily found in offices,
factories, gasoline stations, large retail stores, restaurants etc. which offer
a variety of products including impulse goods such as coffee, candy,
nnewspaper, soft drinks etc.
  Buying service: The retail organization serves a number of clients
collectively, such as employees of an organization, who are authorized to
purchase goods from specific retailers that have contracted to give
discount, in exchange for membership.
 Corporate Retailing: It includes retail organizations such as corporate
chain store, franchises, retailer and consumer cooperatives and
merchandising conglomerates. There are a number of advantages that
these organizations can achieve jointly, such as economies of scale, better
and qualified employees, wider brand recognition, etc.

With the emergence of new forms of retailing, competition is also increasing

between them. It is one of the fast-growing and challenging industry.

CHECK YOUR UNDERSTANDING

POST-ACTIVITY ASSESSMENT
I. Write words or phrases that corresponds with the word inside the circle.

5 2
Retailing

4 3

II. ESSAY. Give your OWN VIEWS on the following questions below. You
don’t need to look at the Internet for your answer. Give your best and He
will do the rest. YOU CAN DO IT! Good luck!
1. What do you think is the difference of retailer, reseller and
wholesaler?
2. What is the difference of retailer from retailing?
 WEEK
ECONOMIC JUSTIFICATION LESSON

3 FOR RETAILING 2

DISCUSSION AND SUMMARY

ECONOMIC JUSTIFICATION FOR RETAILING. All middlemen basically serve as

purchasing agents for their customers and as sales specialists for their suppliers. To
carry out those roles, retailers perform many activities, including anticipating
customer's wants, developing assortments of products, acquiring market information
and financing.

It is relatively easy to become a retailer. No large investment in production equipment

is required, merchandise can often be purchased on credit and store space can be leased
with no 'down payment' or a simple website can be set up at relatively little cost.
Considering these factors, perhaps it's not surprising that there are just over a 6 million
retail outlets operating across the Indian cities from north to south and from east to
west. This large number of outlets, many of which are trying to serve and satisfy the
same market segments, results in fierce competition and better values for shoppers.

To enter retailing is easy; to fail is even easier! To survive in retailing, a firm must do a
satisfactory job in its primary role - catering to consumers. Rama Subramaniam the
former head - retail segment Spensors described a successful retailer as a "merchant
who sells goods that won't come back to customers who will". Of course, a retail firm
also must fulfill its other role - serving producers and wholesalers. This dual role is both
the justification for retailing and the key to success in retailing.
 WEEK LESSON

4 GENERAL SERVICES 3

DISCUSSION AND SUMMARY

GENERAL SERVICES. The general services which a retailer provides are:

1. The retailer anticipates the wants of the consumers and then supplies them
the right kind of goods at reasonable price. His job is to make the consumers
buying as easy and convenient as possible i.e. he acts as a consumers' agent.
2. He performs the service of bulk-breaking i.e. dividing large quantities into
small units, such as individual cans, bottles, boxes, wrappers, packages,
appropriate for consumer use.
3. He offers a large assortment of merchandise, of suitable size, colour, design,
style and seasonal items-ranging from domestic utensils, household
requisites to speciality goods.
4. He creates time and place utility by storing the products in off season and by
transporting these goods to the places where they can be readily available as
and when needed by the consumer.
5. He also assumes risks by guaranteeing the goods he sells to the consumer.
6. He also offers free delivery of goods, credit on open accounts, free alteration,
liberal exchange facilities, instructions in the use of goods, revolving credit
plans, and long term instalment programmes.
7. He adds to the convenience and ease of consumer purchasing by offering
convenient shopping locations, market informations and other services such
as free parking privileges, lessons on product use and a multitude of other
facilities may be offered and found sufficiently desired to result in increased
patronage.
8. He helps the producers in distributing their products by using advertisement
display and personal selling.
9. The level of retail sales is one of the most useful barometers of the nations
economic health. For example when sales of cycles pick-up, sales of steel and
components also increase, as does employment and thus increasing
purchasing power. But when sales go down, manufacturers cut back
production, unemployment increases and retail sales also goes down.

CHECK YOUR UNDERSTANDING

POST-ACTIVITY ASSESSMENT
ESSAY. Give your OWN VIEWS on the following questions below. You don’t
need to look at the Internet for your answer. Give your best and He will do
the rest. YOU CAN DO IT!  Good luck! 
1. In your own understanding, what are these general services that are
mentioned above?
2. How do it helps (the general services) the producers?
3. How do it adds (the general services) to the convenience and ease of
consumer?
4. In what way do the retailer creates time and place utility?
5. What is the job of the retailer to consumers?

WEEK LESSON

5-6 FACILITATING SERVICES 4

DISCUSSION AND SUMMARY

In order to carry out functions involving transfer of ownership and physical supply
effectively retailers perform a number of facilitating functions i.e. functions relating to
standardisation and grading, financing, risk-taking and market information.

A retailer of fresh fruits and vegetables has to standardise and grade these to make
these acceptable to customers. They establish standards, inspect goods they receive,
and sort them in various classifications.

Quite often they purchase in large quantities and then divide them and repack them
before selling. When the retailer sells goods on credit he performs finance function. From
the moment he sells and collects the last rupee from the customer, when goods are sold
on credit, he is said to be performing a financing function.

Another function performed by retailers is that of risk-taking. During the entire time a
retailer holds title to particular goods, he must inevitably bear a wide variety of risks.
Not only the goods may be destroyed through fire or flood, but also, there is often the
danger of theft, deterioration or spoilage.

Furthermore, such merchants are also faced with the threat that consumers will not
accept their product or will purchase them only at unprofitable prices. He also
undertakes risk in handling of fashion goods and other items for which consumer
demand varies greatly from time to time.

Since the retailer knows about the wishes of his customers the price, quality and the
kind of merchandise available in the market as well as the existing and anticipated style
trends, he keeps in stock the goods usually required by customers.

CHECK YOUR UNDERSTANDING

POST-ACTIVITY ASSESSMENT
ESSAY. Give your OWN VIEWS on the following questions below. You don’t need
to look at the Internet for your answer. Give your best and He will do the rest.
YOU CAN DO IT!  Good luck! 
1. Write words or phrases that is associated with the word inside the circle.

5 2
RETAILERS

4 3
 2. Aside from the given threats above identify other threats or risks faced by
the merchants.
3. What do we mean by risk taking when it comes to retailing?

SUMMATIVE
ASSESSMENT
As a summary of this module, create a diagram that could represent the
totality of what retailing is. Below your diagram, include a brief description of
your output. Your diagram must include the essential factors needed in a cycle
of retailing process.
Place it in a short bond to be attached with your answer sheet.
It will be graded according to the following criteria:
 Clarity of information presented: 40%
 Clear presentation ( correct flow ): 30%
 Correct and connectedness of explanation : 30%

REFERENCES
 https://businessjargons.com/retailing.html


Reach me through my Facebook account @ Eddie Agbayani Jr. or Gmail account:

eddieagbayani220@gmail.com for queries and clarification.