Retail margin. Retail Challenges

Retail trade is the foundation for entrepreneurial and economic activity of the state, it is a link in the distribution of goods. The dynamic development of retail is monitored by professionals in various fields, this is a very important indicator of the development of the economy, the country and the whole society. The retail margin is one of the components of the price of a commodity at which it will be sold. It is due to the implementation of this concept that all sales costs and indirect taxes are covered. The trade margin directly tells us about the profit that we can get from the sale of a particular product, as well as the costs associated with the sale of products. It is necessary to speak in more detail about the development of retail trade, as this is inextricably linked with the original concept of retail trade.

The development of retail in Russia contributes to the entrepreneurial activity of the population, the effectiveness of programs for monitoring small business, this is a great opportunity to change consumer income among the population.

For several years, retail sales have been growing steadily. In general, retail trade turnover, which falls on food and non-food assets, has been preserved. Any food product, like consumer goods, has a limited growth limit if there is a margin in the retail trade for luxury goods, as opposed to goods in special demand and pre-selection. Even if we take into account the growth of indicators, one can observe a certain decrease in the growth of retail trade in the market.

This trend is fully justified, retail trade is gaining more and more civilized features. Today, huge chains of supermarkets, large shopping centers that conduct retail and wholesale trade have become a big force on the market, so the retail margin may be increased. In general, the income of the population in large cities and the capital is increasing, so that prices can no longer be decisive in determining the place where this or that purchase will be made, now more and more preference is given to trading places with an increased level of comfort and service. Renting commercial premises in many cases is far from low cost, so the retail margin is an inevitable and logical method. Some shops and shopping centers are successfully trading, receiving substantial discounts from their suppliers due to large volumes of products. Despite the positive development of retail trade, there are problems such as a shortage of retail space.

This problem is most acutely felt in Moscow; today, even for a small retail outlet, it is extremely difficult to find a suitable room. This is not to mention the large shopping malls and supermarkets that have found their shelter along the city’s major highways, a similar choice of retail space is obvious. Land along roads and highways does not apply to Moscow, but to the Moscow Region, so the cost of buying a place will be much cheaper, as well as paperwork. Consequently, in such shopping centers you can earn more, especially when you consider that the retail margin will necessarily be present. If a place for a retail outlet is found, then the rent, in most cases, will be so large that it may simply not justify the cost. This applies to shopping places in the central region of Moscow, St. Petersburg and other large cities. For small retail outlets, adequate rental, tax and other costs are very important, because the income of such retail outlets is not large. Today it’s hard to maintain a retail outlet because of the bureaucratic apparatus, especially as large flows of foreign investors have poured into large cities and the capital of the country, who consider the development of their business in Russia affordable and attractive.

Thus, the trade margin in retail is formed.


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