Structure of retail sector

Organization and structure of retail sector:

Retailing is considered as the sale of goods or commodity in a small quantity to customer. It is simply the process where the customer gets the goods as per their demand and the retailers provide it to them. Retailing simply is an intermediate guide or distributor between an Organization and Customer. The goods firstly produced by the organization or industry are made through different series of process. That product after the finalization then is given to the wholesaler and wholesaler provides it to the retailer. In some cases the organization provides the product directly to the retailer. Retailer has direct approach with the people or customer. As per the demand of people the retailer gets the goods or products from organization and sells it to the customer. In UK the retail industry covers all the business that sells goods and provides good service to the customer. The main organization consist of lots of branches and these branches may be divided into further sub-branches and provide the goods in different part of the county. The final branch may be in the form of store. In UK the retail industry employs over ten percent workforce in total workforce of the country. Annually it adds the contribution of 17.5 billion pound to the entire UK economy.

The size of the organization also determines the pattern of retail industry. Bigger organization produces the goods in larger quantity and the aims or goals of this organization are high. As this organization has to gain lot of profit its organization will be different than other small one.  Bigger organization usually gives their goods to wholesaler and the wholesaler provides it to retailer and finally it reaches to the customer. If the production is large then it reaches to the wholesaler. If the production is low then the goods directly goes to the retailer. The sales of the organizations depend upon the retailer as retailer has the upper hand to know all the queries of the customer and promote the product.

Methods of distributing goods to different branches from the manufacturing organization to the customer:

Each and every organization needs a proper plan to distribute their products in the market. The organization should be able to satisfy their targeted customer. Most of the business industries sell their goods through the retailer. This is also known as the distributing channels. The products prepared by business organization have to go through different stage and processes before it reaches to the customer. All the error has to be solved out before the goods reaches to the customer. Most of the large business organization decides to sell their product through the wholesaler. It is because the number of products or goods manufactured by the company is in large scale and to store it the wholesaler is required. Then the wholesaler provides it to retailer and through retailer it goes to the customer who demanded that product. The other way is when business organization supplies its goods or product to the retailer and retailer provides it to the customer. In this process there is no wholesaler. It is considered as the effective way of selling since it do not involve the wholesaler the retailer can directly communicate with the customer and tell their feedbacks to the organization. The final way is organization selling its product directly to the customer. Here there is the direct communication between the members of the organization and the customer there is no any presence of the wholesaler and the retailer. The retailer plays an important role to promote and publish the business. However in most of the cases it has been found that the wholesaler sell the product to retailer in certain amount and when the same amount reaches to customer then it becomes more costly. Some people therefore try to contact and deal directly with the wholesaler. For some they find dealing with the product straight from the organization more trustworthy then others.

The distribution of the products or goods and services are shown in the figure below:                                           

It may be a challenge to supply the product from the organization. The diagram above represents the methods how the business organization sell their products to customers by using different branch. The manufacturing organization supplying it’s good directly to the customer. This type of method is generally used by the small industry. The industry or small organization produces fewer amounts of goods which can easily be sold into the local market and they earn the profit. Larger industries mostly do not relay on this technique. Larger industries or organization mostly give their products to the wholesaler and the wholesaler to the retailer. However besides the larger scale industries and small scale industries there are medium scale industries or the medium scale organization which distribute their products to the retailer and retailer then provides it to the customer. The final and ultimate goal of every producer or producing organization is customer. The retailer plays an important role to convince the customer. Some customer is loyal to the products which they buy each and every day. It is the work of retailer to keep them satisfied and happy with that product. The negativity of the retailer may lead to the downfall of the product. The organization can use any path or branch to sell their products. It mostly depends upon the size and economic rate of the organization. There is no any compulsion that all the organization has to use the same way to sell their goods or products.  The simplest way of selling the goods is the straight sell through the producer to the customer.