1. Buying:

A retailer buys a wide variety of goods from different wholesalers after estimat­ing customer demand. He selects the best merchandise from each wholesaler and brings all the goods under one roof. In this way, he performs the twin functions of buying and assembling of goods.

2. Storage:

A retailer maintains a ready stock of goods and displays them in his shop.


3. Selling:

The retailer sells goods in small quantities according to the demand and choice of consumers. He employs efficient methods of selling to increase his sales turnover.

4. Grading and Packing:

The retailer grades the goods which are not graded by manufac­turers and wholesalers. He packs goods in small lots for the convenience of consumers.


5. Risk-bearing:

A retailer always keeps stock of goods in anticipation of demand. He bears the risk of loss due to fire, theft, spoilage, price fluctuations, etc.

6. Transportation:

Retailers often carry goods from wholesalers and manufacturers to their shops.


7. Financing:

Some retailers grant credit to customers and provide the facility of return or exchange of goods. In some cases, home delivery and after sale service are provided by retailers.

8. Sales promotion:

A retailer displays goods. He carries out publicity through shop decoration, window display, etc. He maintains direct and personal contacts with consumers. He persuades consumers to buy goods through personal selling.


9. Information:

Retailers provide knowledge to consumers about new products and uses of old products. They advise and guide consumers in better choice of goods. They also provide market information to wholesalers and manufacturers.