Retail Market Characteristics
The retail market consists of sales of goods to ultimate users by entities (organizations, sole traders and partnerships) that provide the service of making goods available in convenient quantities and locations. Retailing involves buying from wholesalers or direct from producers, breaking bulk, displaying goods for sale either physically or online, and sometimes delivery. Wholesalers are independent organizations in the distribution channel that buy in bulk and sell to resellers rather than to consumers.
Both retailers and wholesalers take ownership of the goods and so bear the risk of carrying inventory. They also reduce the total number of transactions required for the process of transferring goods from producers to consumers.
Competitive Landscape of the Retail Market
Major players in the global retail market include Amazon Inc., Wal-Mart, Costco, Kroger, Home Depot, Schwarz Unternehmens Treuhand KG, CVS Health, Carrefour, Tesco, Aeon.
Retail Market Size
The retail market size is expected to reach $30 trillion by 2022, significantly growing at a CAGR of around 5% during the forecast period. The growth in the retail market is due to increased disposable incomes, favourable changes in consumer tastes and preferences, and entry of many large retailers in the industry.
However, the market for retail is expected to face certain restraints from several factors such as weak wage growth in developed economies, price sensitivity.
Retail Market Segmentation
The global retail market is further segmented based on type and geography.
By Type - The retail market is segmented into specialty retailers, department stores & other general merchandise stores and ecommerce & other non-store retailers, among these segments, the specialty retailers market accounts for the largest share in the global participatory retail market.
By Geography - The global retail is segmented into North America, South America, Asia-Pacific, Eastern Europe, Western Europe, Middle East and Africa. Among these regions, the South America retail market accounts the largest share in the global retail market.
Trends in the Retail Market
E-commerce stores setting up offline stores, automation in store operations and big data analytics in retail and wholesale are the major trends witnessed in the global retail market.
Potential Opportunities in the Retail Market
With emerging markets growth, technology development and low oil prices, the scope and potential for the global retail market is expected to significantly rise in the forecast period.