1
RETAILING OVERVIEW
LEARNING OUTCOMES
At the end of this chapter you should be able to:
 Define the concept of retailing
 Explain the importance of retailing
 Describe retailing mix
 Explain green retailing
 Define e-tailing
 Explain the concept of halalan toyyiban
 Elaborate on relationship retailing
 Discuss entrepreneurship opportunities
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 3
INTRODUCTION

Retailing refers to any business activity which adds
value to the products and services sold to end
consumers.
 This involves a set of final activities and steps needed to
ensure that products or services are subsequently
transacted and secured into consumers’ hands.
 It can be performed by any retailer or retail firm that
sells a product and/or provides a service to the final
consumers for their own household consumption.
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 4
IMPORTANCE OF RETAILING




Providing wide assortments of products
Bulk breaking
Stocking inventory
Providing many other value-added services
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 5
RETAIL MIX
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 6
GREEN RETAILING


Green retailing is an approach to managing a retail
business that takes advantage of environmentally
friendly processes.
Green retailing provides retailers with business
sustainability, a positive brand image and a way to
show customers their social responsibilities by
reducing
the
environmental
impact
while
simultaneously delivering significant financial
benefits.
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 7
GREEN RETAILING (CONT.)

There are two benefits for retailers to consider ecofriendly practices:
– Consumer awareness on eco-friendly goods and
practices has increased in the last decade. They are
willing to spend more on ‘green’ and organic
products, and this serves as an opportunity for
retailers to expand their offerings.
– Retailers have realized that developing an ecofriendly brand would provide sustainable competitive
advantage and differentiate their products from their
competitors in a crowded marketplace.
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 8
E-TAILING


Electronic retailing (or e-tailing) simply defines any
business-to-consumer (B2C) transaction taking
place over the Internet.
It is categorized as non-store retailing. Simply put,
e-tailing is the sale of goods online.
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 9
THE CONCEPT OF HALAL



Halal is a term designating any object or action which is
permissible to use or engage in, according to Islamic
law.
Halal is an Arabic word meaning lawful, permissible,
allowed or legal and the term not only covers food and
drink, but also all matters pertaining to daily life.
Halalan toyyiban means allowed and permissible for
consumption in relation to Shariah law as long as they
are safe and not harmful. Toyyiban denotes food that is
safe, clean, nutritious and of good quality.
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 10
RELATIONSHIP RETAILING

In retailing, retailers do not only serve customers with
their physical goods but also with services that are
tangible in nature.
 This entails looking at the retail value-driven
relationships and that retailers could provide to
customers in ensuring positive shopping experience,
satisfaction and subsequently promoting customer
loyalty.
 In applying relationship retailing with customers, factors
such as customer base, customer service, customer
satisfaction, loyalty programs and defection rates must
be considered.
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 11
ENTREPRENEURSHIP
OPPORTUNITIES


Management Opportunities
– Retailers employ people with expertise and interests
in finance, accounting, human resource management,
supply chain management and computer systems, as
well as marketing. Retail managers are often given
considerable responsibility early in their careers.
Entrepreneurial Opportunities
– Retailing also provides opportunities for people who
wish to start their own business. An entrepreneur is a
person who takes the initiative to pursue a new
business venture through innovative means and is
prepared to accept a certain degree of financial risk.
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 12
SUMMARY

Retailing is defined as a set of business activities that
add value to the products and services sold to
consumers for their personal or family use.
 These
value-added activities include providing
assortments, breaking bulk, holding inventory, and
providing services.
 The retail management decision process involves
developing a strategy for creating a competitive
advantage in the marketplace and then developing a
retail mix to implement that strategy.
ORS RETAILING
© Oxford Fajar Sdn. Bhd. (008974-T), 2016
All Rights Reserved
1– 13