Question

How can an independent retailer avoid becoming over- reliant on the owner?

1. How would you define the term “retail institution”? What is implied by this term?
2. Would REI be as successful if it operated as a traditional chain? Explain your answer.

Answer 1

Retailer is an individual or company who purchase their goods from wholesaler’s and sell their goods and services directly to the consumers. They purchase on low cost and sell on high cost to earn maximum profits. In case retailers leased land from retail institutions they have to depend on them in order to avoid the dependence retailers must purchase their land wholly or should increase their profits or sales volume.

Independent retailers are tthe one who owns individual store or operates all the activities by its own. They are the owner of their own independent store so they need not to over reliant on any body they are actually their own boss.

Retail Institution refers to the basic structure or pattern of a business which is either leased or purchased, It refers to location,usually a convenient department, discount, or specialty store – that is rented to an third party. Vertical Marketing System – All the levels of independently owned businesses along a channel of distribution.

Retail institutions wouldn’t be successful if they follow traditional chain due to increasing competition or increase of new technology . In today’s era everyone have to keep in pace with updated technology and innovation to retain themselves in the field.