Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is the sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit. Retailers are the final link in the supply chain from producers to consumers.
Retail markets and shops have a long history, dating back to antiquity. Some of the earliest retailers were itinerant peddlers. Over the centuries, retail shops were transformed from little more than "rude booths" to the sophisticated shopping malls of the modern era. Retail operations center on obtaining goods in the needed quantities and placing them where customers will buy them, which makes purchasing and supply management core parts of retail strategy. Retail strategy is often supported by periodic environmental scanning and structured analysis of markets, customers, internal capabilities, and competition. Day-to-day decisions are often described using the retail marketing mix, commonly summarized as six “Ps”: product, place, promotion, price, personnel, and presentation (physical evidence). Place decisions include location, operating hours, and access, and many retailers have expanded into multichannel models that combine physical and online retail. Pricing strategy and tactics can include discounts, everyday low pricing, high-low pricing, loss leaders, bundling, and psychological pricing, alongside planning for customer payment modes that carry handling costs. Retail labor needs often vary by time and season, which has supported flexible scheduling; one cited estimate is that in 2012 about 70% of United States retail workers were part-time. Over time, many retailers have emphasized longer-term customer relationships rather than one-time transactions, while also investing in store design (layout, lighting, music, signage, and “decompression” areas) to shape the shopping experience. In the digital age, an increasing number of retailers are seeking to reach broader markets by selling through multiple channels, including both bricks and mortar and online retailing. Digital technologies are also affecting the way that consumers pay for goods and services. Retailing support services may also include the provision of credit, delivery services, advisory services, stylist services and a range of other supporting services. Retail workers are the employees of such stores.
