Retail trade involves the sale of goods directly to consumers. There are various types of retailers including itinerant retailers like hawkers and peddlers, fixed shop retailers like small stores and large stores like department stores. Retailers provide services to both producers such as promotion, and consumers such as regular supply and credit. Documents used in internal trade include invoices, debit notes, credit notes, and receipts.

1. RETAIL TRADE
Trade in which the trader sells the goods to
consumers according to their requirement.

2. Characteristics of retail trade
 Goods are sold to ultimate consumers
 Goods are purchased and sold in small
quantities
 Varieties of goods are sold.
 Direct contact with consumers
 Area of sale is limited/
 Last link in the distribution channel.

3. Functions of Retailer
 Forecast the commodities useful to his consumer.
 Collects varieties of goods from different
wholesalers.
 Sells goods according to the requirement of
consumers.
 Sells on credit basis and provide home delivery
service.
 Collects information related to market.
 Takes risk arising due to decrease in sales, price
of goods.

4. Service of Retailers
Service to
producers
1. Sale of product in small
quantities
2. Collecting Customers
Demand
3. Advertising and promotion of
Product
Service to
Consumers
1. Regular supply of goods
2. Information about products
3. After Sale Service
4. Credit Facility
5. Ease of Buying

5. Types of Retailers
Itinerant Retailers
Hawkers and Peddlers
Market Traders
Street Traders
Cheap Jacks
Fixed Shop Retailers
Small Retailers
Stall Holders
General Stores
Single Line Stores
Specialty Shops
Large Retailers
Departmental Stores
Multiple shops
Consumer co-operative
stores
Supermarket
Mail Order House

6. Itinerant Retailers
 Hawkers and Peddlers : Carry goods on wheeled
vehicles or on their head.
 Market Traders: Sell merchandise on some
selected day of the week.
 Street Traders: Display their goods at the busy
pavements of corners and sell the goods to public.
 Cheap Jacks: Have temporary shop structure and
move from one place to another.

7. Small Retailers
 Stall Holders: Open wooden stalls. Goods sold are snacks,
tea, cigarettes, stationary goods.
 General Stores: Stores remain open for long hours, provide
credit facility, home delivery
 Single Line Stores: Deal in specific line of product with
varieties.
 Speciality Shops: focus on specific needs of customer.
 Secondhand Shop: Deal in second hand or used goods like
books, furniture etc.

8. Large Retailers
 Advantages:
 Large Scale Purchase
 Purchase at one place
 Economy in Advertisement
 Division of labour
 Selection
 Allied Service
 Good quality goods
 Centralised location
Departmental Stores: Big Retail store with different
departments or sections dealing in different line of products
forming a complete unit in itself. Example: BigBazar
 Disadvantages:
 Large Capital
 High Prices
 High operating Cost
 Lack of personnel touch
 No credit purchase
 Inconvenient Location

9. Large Retailers
 Advantages:
 Low prices
 Collective advertisement
 Stock transfer
 Specialisation
 Cash Sales
 Beneficial Location
 Fixed prices
 Compensation of loss
Multiple Shops/Chain Stores: One Organisation
sets up shops in different localities of the city or in
different cities. Example:Bata
 Disadvantages:
 Large Capital
 Lack of Personal touch
 Limited varieties of
commodities
 Rigidity
 Lack of credit facility

10. Large Retailers
Consumer Co-operative Stores:Stores are
operated and controlled by consumers themselves.
 Advantages:
 Quality goods at cheaper
rates
 Easy control
 Distribution of profit among
members
 Economy in managing
expenses
 Cash Sales
 Elimination of middlemen
 Disadvantages:
 Shortage of funds
 Lack of initiative
 Lack of professional
managers

11. Large Retailers
Super Markets: An organisation where each
section sells different commodities.
 Advantages:
 Variety of goods
 Easy control
 Fixed price
 Cash Sales
 Quality goods
 Less price
 Disadvantages:
 High capital
 Mishandling of goods
 Lack of personal contact
 No credit sales

12. Large Retailers
Mail Order House: a retail outlet where
customers send the orders to the sellers by post
and the seller sends the goods by post.
 Advantages:
 Limited Capital requirement
 V.P.P facility
 Wide Area
 Relief from shopping
 Elimination of middlemen
 Disadvantages:
 Cost of Advertisement
 Heavy cost on postage
 Difficulty in Dispatching heavy
things
 no credit facilities
 No personal contact
 Damage in transit
 Delay in receipt of goods
 Damage in transit

13. Vending Machine
A vending machine is a machine that dispatches
merchandise when a customer deposits
sufficient money into slot or vent to purchase
the desired items.

14. Documents used in internal trade
 Performa Invoice- price quote a seller gives to a buyer which
includes the precise cost of the goods at the time of
transaction
 Invoice- Statement given by the seller to a buyer includes tax.
It is also called as bill.
 Debit note- Debit note is made by a seller or buyer to debit the
account of the person named therein.
 Credit note-
 It is made by the buyer to credit the account of the person
named therein.
 Lorry Receipt – It is issued by the transporter. It contains the
name of the consignor and consignee, registration number of
goods carriage in which the goods are transported, details of
the goods transported details of the place of origin and
destination.
 Railway Receipt- A railway administration will issue a receipt .