More and more foreign terms penetrate into the Russian language, which become part of it. To a large extent, this applies to the economic sphere, where an abundance of incomprehensible words can confuse even the most educated people. For example, not everyone knows the meaning of the popular word "retailer".
Who are retailers?
The word retailer (from the English retailer) means only "retailer", that is, the last link in the chain linking the manufacturer of the product with its final consumer. The traditional trading scheme is as follows: a manufacturer sells its products to large wholesalers who collect several specific items in their warehouses. Small wholesalers, in turn, purchase goods from several large wholesalers, thereby further expanding the number of positions. Finally, retailers-retailers display on their retail space a variety of products that have come along these chains. Naturally, in each case, the final price is made up of the profits of all participants in the chain.
In some cases, retailers work directly with the manufacturer, for example, fairly large chain stores that have their own warehouse facilities do not need the services of wholesalers.
For example, the net profit of large chain supermarkets selling groceries is small in percentage terms - only 1-3%. However, huge turnovers result in quite significant income. Of course, for grocery stores, the flow of customers is of great importance, since retailers are constrained by short shelf life of products. In the non-food sector, the profit can reach 50%, but the turnover will be significantly lower.
Sources of additional store income
Retailers' profits are not only made up of retail margins. Other sources of income are the provision of space for promotions, sublease, and admission fees. This does not mean, of course, entrance tickets for buyers, but a certain amount that the manufacturer must pay to the retailer for the goods to appear on the shelves. In large supermarkets, such a fee can significantly increase profits, as hundreds of brands are sold there.
The world's largest retailer is the Wal-Mart chain of stores, whose annual turnover exceeds $ 400 billion, that is, comparable to the Russian budget.
In addition, the "entry bonus" may be charged on a one-off basis or annually, depending on the rules of the particular store. This is a worldwide practice, therefore, in most retail stores, only those products are on the shelves whose distributors have deemed it necessary to pay to the retailer. The profession of a merchandiser is also associated with retail - a person who is responsible for the arrangement of goods on shop windows and shelves. Some manufacturers pay extra to retailers to keep their products in the best positions, increasing the likelihood of a purchase.