Explain the functions of retailer.

1. Wide choice to consumers : Even though the retailer functions in a limited are with a small number of customers, he keep himself ready to meet all the requirements of his customers. For this he is required, first of all, to know the different kinds of goods likely to be demanded by them and, secondly, to locate the sources from where such goods could be obtained at competitive prices.

2. Ready stock : The retailer knows the exact requirements of his customers as also the sources from where he could obtain the goods to meet these requirements. As such he keeps a ready stock of all goods so that he is able at all times to supply the goods required by a customer.

3. Transport : Wholesalers are the main source of supply of goods to the retailers. But this requires cheap and dependable means of transport to carry the goods from the wholesaler’s godowns to the retailer. Though the retailers have limited resources and they may not be able to have vehicles of their own for this purpose, nevertheless they ensure quick transport of goods to their shops.

4. Grading : Generally, grading of goods is done by the producers, and sometimes by the wholesalers. But goods which have not been graded by the producer or the wholesaler, are graded by the retailer who also sometimes packs these goods insuitable lots for sale to the consumers.

5. Risk-bearing : Retailers have to maintain a reasonable stocks of goods. The risk of loss of such stocks by fire, theft, spoilage, etc., has to be borne by them.

6. Financing : Even though wholesalers are quite liberal in allowing credit, retailers on their part are also required to meet the cost of goods at least to some extent, as also the expenses on warehousing and advertising. They are also often required to grant credit to their customers. This means that the retailers play an important role in financing the distribution of goods.

7. Market research : Retailers enjoy intimate terms with their customers. For this reason, they are in a position to study the market behaviour. What types of goods are in demand ? What changes are likely in consumers tastes or fashion ? From time to time, they pass on such information to the wholesalers for onward transmission to the manufacturers concerned.

8. Sales promotion : By an attractive display of goods in his shop, the retailer assists in their advertising and publicity. For the producers launching sales promotion campaigns through “Why I like your product” schemes, retailers play an important role by distributing and collecting the entry forms on behalf of the respective producers.