The retail sector includes hard and soft retailers, department stores, discount stores, and niche businesses. Seasonal sales are important for yearly profits. The rise of e-commerce and concerns about product quality could change the industry. Online retailers are growing, offering lower prices due to lower operating costs and increased sales volumes.
The retail sector includes small businesses and chain stores that sell products directly to individual consumers. These companies can be classified according to their designer products into “hard” and “soft” retailers. Industry experts also classify retailers as department stores, discount stores, and niche businesses. Businesses in the retail industry typically rely on seasonal and holiday sales to support yearly profits. This industry could change significantly in the 21st century due to the rise of e-commerce and growing concerns about product quality.
Retailers offering hard products for sale focus on hard goods made from plastic, metal, and wood. Hardline retailers range from locally owned stores that sell sporting goods to retailers that sell refrigerators and ovens. This retail segment often relies on physical stores to sell their products due to consumer interest in hands-on testing. Another segment of the retail industry is “soft” retailers who carry items made from fabric, leather and other soft materials. Retailers include shoe and fabric stores that employ salespeople to assist customers in product fit, color, and style.
Another view on the retail sector uses product variety and price as a filter. Consumers often shop at department stores to take advantage of reasonable prices on hard and soft products. Department stores compete with discount retailers who focus on generic versions of popular products and bulk products sold at low unit prices. Niche business remains on the periphery of the retail sector as department stores and discounts head for lower price points. Niche businesses include jewelry stores, organic food markets, and independent bookstores that appeal to small groups of consumers.
Many types of retailers focus on a handful of high-volume periods each year to improve their bottom line. The period between Thanksgiving and Christmas, for example, features an influx of sales as consumers shop for holiday gifts. Couples look for chocolates, greeting cards and flowers around Valentine’s Day on February 14th. Consumers flock to department stores and gift shops in the weeks leading up to Mother’s Day and Father’s Day. The retail sector also offers late summer back-to-school deals to parents and students looking for school supplies.
The future of the retail sector could involve a shift from brick-and-mortar stores to online retailers selling to national and international consumers. The early 21st century included the continued growth of virtual discount stores and niche retailers offering products at lower than established store prices. These discounts are possible due to lower operating costs for online stores and increased sales volumes which allow for deeper price cuts. This trend could extend from consumer electronics and apparel to appliances, groceries, and household items due to an expanding community of product review websites. Consumers are able to look for reviews on products sold by online retailers to avoid inferior goods and find the best deals.
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