What is Retail? | How Retailers Make Money | Retail Dogma

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What is retail? Why is it so important for the economy?
Retailing is the final step in distribution of merchandise, where retailers sell merchandise directly to the end consumer in small quantities.

Retail is one of the most vital sectors of the economy. It supports 1 in 4 U.S. jobs and contributes 7.7% to the U.S. GDP

How Does The Business Model Work?
The business model of retailing involves buying merchandise in large quantities from wholesalers (or manufacturers) at low price and selling it in small quantities to the general public at higher price. The difference in price is called gross profit.

In order to deliver such a service, retailers perform a lot of activities through different functions in the business

These include:

Product Sourcing
Marketing & Branding
Store Operations
Merchandising
And Sales

They also rent different stores, offices and warehouse locations.

Retailers spend part of the gross profit they earned from selling the merchandise at the stores on running such functions and paying those rents, and at the end they generate a smaller pre-tax profit

Learn More: https://www.retaildogma.com/what-is-r...

Read Also: How do retail stores make money? https://www.retaildogma.com/how-do-re...

Download the Retail Business Model Canvas template for your business
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ABOUT US:

Retail Dogma is an online platform that teaches retail & ecommerce; from the very basic knowledge for beginners, to the most actionable, technical, advanced knowledge. All the materials are prepared by professional retailers with more than 14 years of experience.

We cover everything, from buying products, pricing, merchandising, managing sales, managing inventory, managing cash flow to managing financials.

Visit our website and start reading through our free retail management guides and articles, and download our free templates and cheat sheets that will help you while starting a retail or ecommerce business.

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- Retail Math Formulas Cheat Sheet
- Retail Business Plan Template
- Shrinkage Action Plan
- Fashion Boutique Opening Checklist
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USEFUL LINKS:

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➗ Retail Math Formulas Cheat Sheet: https://www.retaildogma.com/retail-ma...

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