Internal Trade — Retail Trade

Retail trade is the second branch of internal trade, and it sits at the very end of the distribution chain. It refers to the business of buying goods — usually from wholesalers, though sometimes directly from producers — and selling them in small quantities directly to the final, or ultimate, consumer for personal use or consumption, rather than for resale. The person or business carrying on this activity is called a retailer, and the shop, store, or outlet through which this happens is the point of contact the ordinary buying public interacts with every day: the neighbourhood provision store, the pharmacy, the clothing showroom, the supermarket, or an online retail platform.

Retail trade differs from wholesale trade in almost every respect. Where wholesale trade deals in large-scale bulk transactions, retail trade is characterised by small-scale operations — a retailer typically sells only as much as a single household or individual needs at one time, whether that is a kilogram of rice, one shirt, or a single bottle of medicine. Where a wholesaler usually specialises narrowly in one line of goods, a retailer very often stocks a wide variety of goods to meet the many different everyday needs of the consumers who walk through the door — a general provision store, for instance, might stock food items, toiletries, stationery, and household goods all at once, precisely so a customer can complete most of their shopping in a single visit.

A further distinguishing feature of retail trade is direct and frequent contact with the final consumer. Retailers are typically located close to residential areas, marketplaces, or high-footfall commercial streets, precisely so that ordinary consumers can reach them easily and conveniently, often on a daily or weekly basis. This closeness to the consumer gives the retailer a valuable, first-hand understanding of changing consumer tastes, preferences, and complaints — information that, passed back up the chain, is useful to wholesalers and producers alike. …