What does retail mean?

In logistics and business, retail describes all processes associated with the direct sale of goods to end customers—regardless of whether the sale takes place in a brick-and-mortar store or online via e-commerce.

In contrast to wholesale, where goods are sold in larger quantities to commercial buyers, retail is explicitly aimed at private consumers. Retail therefore encompasses not only the actual sale, but also all upstream and downstream logistics processes along the supply chain – from procurement and storage to picking, shipping, and returns management.

In an increasingly complex retail world, retail is closely linked to efficient logistics. Modern retail concepts rely on digital processes, networked supply chains, and flexible warehousing and shipping solutions to meet rising customer expectations.

Significance in logistics

Retail places special demands on logistics, as it usually involves a very wide variety of items, short delivery times, and flexible delivery quantities. In addition, consumers have become more demanding—they expect fast availability, simple return processes, and transparent delivery information.

This is why retail fulfillment is becoming increasingly important. It describes all the logistical measures necessary to deliver to end customers efficiently and on time—both in online retail and in brick-and-mortar stores. These include, among other things:

• Dynamic inventory management
• Multichannel and omnichannel logistics
• Just-in-time replenishment
• Cross-docking and store delivery
• Returns logistics

Retail formats

There are numerous retail formats, each of which presents different logistical challenges, including:

• Brick-and-mortar retail (e.g., supermarkets, specialty stores)
• E-commerce/online retail
• Omnichannel retail (combination of brick-and-mortar and digital sales)
• Pop-up stores, flagship stores, and showrooms