An Introduction to Retail
by Fiona Chautard – Retail, Fashion & Textiles Adviser
This guide aims to offer insight into selling your designs and products to a retailer. It
explains the benefits of selling this way, understanding the role of the buyer and the
different types of retailers that you may encounter.
The benefits of selling through a retailer
Support from buyers and retailers can be very important in order to establish your
brand and credibility. Although the profit margins are lower, wholesaling your product
can provide many useful benefits including;

Wider geographical reach - it is possible to have your product in a large number
of outlets, giving access to a wider customer base.

Credibility - the consumer is likely to trust your brand more if they see it
displayed in a retailer/store that they already trust.

Although the profit margin is low, the sales volume acquired through a retailer is
much greater.

Prestige - an association with illustrious outlets can create prestige for your
brand and elevate its status in the eyes of the consumer.

Marketing and PR provides a wider reach to your ideal market and can drive
additional traffic to your website.
Understanding the role of the buyer
The buyer has many key responsibilities. Generally these tend to be profit driven and
many buyers are under extreme pressure to produce profits for owners / share holders.
It is helpful to understand what their priorities are when preparing for an appointment.
These include:

ensuring that stock bought sells well and achieves the company’s sales targets

market analysis – understanding the market place that they operate in and
identify changes in consumer habits

trend analysis – predicting future style and fashion trends relevant to their
market

planning merchandise and space – knowing when the stock will arrive and how
to present it in store

budget control – managing stock budgets, buying enough of the right stock to
meet sales targets
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 Fiona Chautard for Cultural Enterprise Office, 2011 www.culturalenterpriseoffice.co.uk T: 0333 999 7989

developing product ranges – identifying new products which will inject freshness
into their ranges and maintain continuity with existing products
Differences between types of retailers
Independent retailers

Very often the buyer of an independent retailer is the owner and is able to make
quick decisions regarding purchases and stocking new products.

They tend to buy intuitively, according to their own taste and their customer
base.

They often know their customers personally and maintain a close relationship
with them.

They have the flexibility to try out new product lines.

They order in small quantities and will not necessarily comply with supplier’s
minimum order quantities.

They may request exclusivity within a local area.
Chain store retailers

The process for placing an order can be slow as buyers need approval from
various levels of management.

The buyer may need to raise a purchase order which can take time before the
order can be confirmed.

They may require their own presentation / labelling.

They tend to buy a range of products, (sometimes called ‘stories’), rather than
single designs.

They may request exclusivity in a design, colour way, print or finish, so be
prepared to negotiate on price.

The orders tend to be larger so it is important to negotiate a realistic delivery
time when the order is placed.

Deliveries may need to be scheduled i.e. you may be required to make a
scheduled delivery appointment at a centralised warehouse.

The buying process may be dictated by company guidelines rather than be
intuitive.

The buyers may be required to negotiate a higher retail mark up to comply with
an overall company strategy.
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 Fiona Chautard for Cultural Enterprise Office, 2011 www.culturalenterpriseoffice.co.uk T: 0333 999 7989
Next steps
Please refer to the following relevant Cultural Enterprise Office resources:
Costing & Pricing Work
How to Approach a Retailer
Preparing to Attend Trade Events
Planning to Sell at Trade Events
How do I protect my idea / business / product?
Can you give any help with contracts?
Disclaimer: Cultural Enterprise Office is not responsible for any advice or information provided
by any external organisation referenced in this document.
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 Fiona Chautard for Cultural Enterprise Office, 2011 www.culturalenterpriseoffice.co.uk T: 0333 999 7989