Retailing is the last stage in a channel of distribution—all of the businesses and
people involved in the physical movement and transfer of ownership of goods
and services from producer to consumer. A typical distribution channel is shown
in Figure 1-4. Retailers often act as the contact between manufacturers, wholesalers,
and the consumer. Many manufacturers would like to make one basic type
of item and sell their entire inventory to as few buyers as possible, but consumers
usually want to choose from a variety of goods and services and purchase a limited
quantity. Retailers collect an assortment from various sources, buy in large
quantity, and sell in small amounts.