Retail industry is one of
most prominent business categories in
modern world. It is spread all over
world, and has a history that is almost as long as human nature. The definition for Retail is ‘Sale of goods in small quantities to
public, usually not for re-sale’. Historical existence of
industry is clear by
definition itself. Today it has a wide scope which spans from house hold items such as bread, sugar to electrical and electronic items, jewelry etc. Stores also range from large supermarkets to small village boutiques.
Retail industry drives
economy of a country. While manufacturing industries create
goods and services that people need,
retail industry provide a marketplace where people as consumers, have convenient access to those products and services.
The retail sector is one of
largest industries worldwide. And it is
second-largest industry in
United States both in number of establishments and in
number of employees. Retail trade accounts for about 12.9 percent of all business establishments in
United States.
Wal-Mart is
world's largest retailer and
world's largest company with more than $256 billion (USD) sales annually. Wal-Mart employs more than one million associates in
United States and more than 300,000 internationally. The second largest retailer in
world is France's Carrefour.
Customer handling is a critical aspect of retailing since it deals with customers directly. Retail Information Technology, commonly known as Retail IT has become very important in this sense, since traders have understood
ease it could give for large volume of customer handling. Computerizing retail stores became a common practice some years ago, but research and development in
areas have not ended. IT evolves day by day, and it is wrong to believe that technology, which we use today, is
best, since development is never-ending. Therefore, even for
retail industry, application of advanced IT solutions would go on.
A basic retail system would have a Point-of-Sale (POS) system to sell goods to
customers. This can be considered as
front-end of
retail system. A POS would normally allow cashier to issue goods and tender. The back-end of
system should manage stores, update accounts, allow periodic reports etc. The system should be able to handle customer returns, apply special discounts, handle special categories of customers etc. A good retail system should be competent in enabling users to tender in different types. The number of new tender types is on
rise with
advancement of technology.
As an example, few decades back, cash was
only mode of tendering, but later, payment types such as credit cards came in to play and systems in
future would need to handle tendering offered through mobile phones(May be a payment order bound to a bank sent through a SMS(Short Message Service) of mobile phones).
The system depends on
business requirements. It is
business that requires systems and adopts suitable ones for them and not
other way round. Therefore, functionality scope of a system is purely driven by
business itself. Complexity of
system would increase with
complexity of
business requirement.