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Study Notes


AQA, Edexcel, OCR, IB

Last updated 22 Mar 2021

Retail is the most popular distribution channel for consumer goods, retailers operate outlets that trade directly with household customers.

Retailers can be classified in several ways:

  • Type of goods being sold (e.g. clothes, grocery, furniture)
  • Type of service (e.g. self-service, counter-service)
  • Size (e.g. corner shop; superstore)
  • Ownership (e.g. privately-owned independent; public-quoted retail group)
  • Location (e.g. rural, city-centre, out-of-town)
  • Brand (e.g. nationwide retail brands; local one-shop name)

Retailers enable producers to reach a wider audience, particularly if broad coverage by the major retail chains can be obtained. The big downside to using a retailer is the loss of profit margin. A high street retailer will typically look to take at least 40-50% of the final consumer price.

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