The Importance of Independent Retailers to Brands - Evidnt (2024)

FAQs

The Importance of Independent Retailers to Brands - Evidnt? ›

Independent retailers are also more likely to have stronger relationships with their customers. They are able to get to know their customers on a personal level and understand their specific needs and wants. As a result, customers are more engaged with the brand and are more likely to make repeat purchases.

The advantage of independent retail include the ability to focus on specific product and access to that product. Independent retailers also directly impact the local economy where they are based.

For many years, the industry has defined an independent as a grouping of fewer than 11 stores and store groupings of 11 or more as a chain.

Giving customers the opportunity to buy online and pick up in-store or curbside. Offering delivery services and letting customers choose their delivery window. Providing an efficient returns process. Offer free online returns or let customers make online returns in-store.

An independent retailer is one who builds their business without help from an established brand. For example, if you open your own Subway Restaurant, you would not be considered an independent retailer, but rather a franchise business.

One of the primary benefits of in-store retail shopping is the tangible experience that it offers. In a physical store, customers get to touch, feel, and try on products before making a purchase decision. This provides a sense of satisfaction and helps customers to ensure that the products meet their expectations.

The Business Model of an Independent Retailer

The independent retailer buys merchandise from manufacturers, wholesalers or distributors at wholesale prices, and then sells them through his store to the end consumer at higher retail prices.

A retail outlet owned individually; not a chain store or branch store.

Answer: Functions of Retailers – Merchandising, Warehousing, Selling, Risk-Bearing, Grading, Packing, Grant of Credit, Guide to Wholesaler, Advertising and Salesmanship. As a middleman between the wholesaler/manufacturer and the consumer/user in the market, the retailer performs many functions.

What are the disadvantages of independent stores? ›

Disadvantages of Independent Retailer

Competition: They face intense competition from national chains and online retailers, requiring innovative strategies to attract customers. Economic Vulnerability: They are more susceptible to economic downturns and require careful financial management.

Sole Proprietorship

It can be established, run, and owned only by a single person. Here is why many entrepreneurs thinking of starting a retail business may prefer Sole Proprietorship: Easy to form. Less paperwork. Complete control.

A retailer cooperative is a group of independent retailers that band together to create a mutually owned, central wholesale operation that also conducts joint merchandising and promotion.

The primary source of profit for most retailers today continues to be the simple sale of goods procured from suppliers, leveraging volume discounts and markups. For instance, in the US, the average profit margin for retailers ranges from 2% for supermarkets to upwards of 50% for jewelry and clothing retailers.

Brands should design loyalty programs that provide customers with tangible value and meaningful rewards. This can include offering exclusive discounts, personalized offers, early access to sales, or VIP experiences.

Data-driven personalization: Retailers can utilize data analytics to discern patterns in customer behavior, enabling them to tailor their offerings according to individual customer preferences. This can lead to increased customer loyalty and satisfaction.

ADVANTAGES AND DISADVANTAGES OF NON STORE RETAILING

It is free from a physical retail store. overheads operating retail outlets are eliminated. Customer coverage is wider compared with an individual retail location. Companies do not have to spend large sums or dilute stock building new locations, or acquiring them.

The principal advantages of chain stores include the ability of the central purchasing unit to buy on favourable terms, lower operating costs, the ability to place advertising for all selling units at one time, and the freedom to experiment in one selling unit without risk to the whole operation.