Retail is changing fast. And if you're starting an online store or growing a retail brand, keeping up is non-negotiable.
Recent data from Deloitte’s 2024 Retail Industry Outlook paints a clear picture: after years of sluggish growth, retailers are betting on automation, partnerships, and emerging tech to stay competitive. Generative AI is moving past the hype, with early adopters seeing gains like 15% higher conversion rates during Black Friday. Nearly 70% of retail executives expect to implement AI tools this year to personalize experiences, optimize supply chains, and make day-to-day operations function better.
As digital efficiency becomes a must-have, 2025 could be a breakthrough year for the industry.
In this article, we’ll walk through the basics and beyond, including:
- What retail actually means
- The role of retailers and how they fit into the supply chain
- Why your point-of-sale (POS) system matters
- Common types of retail businesses, with real-world examples
- The key differences between physical stores and online retail
- Where the industry is headed next
Let’s start with the core question: What is retail?
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What is retail?
Retail is the sale of goods or services directly to consumers, typically in small quantities, for personal use rather than resale. Retail happens at the end of the supply chain, where products are delivered to the final buyer, whether through a physical storefront, an online shop, or a combination of both. It includes everything from fashion boutiques and grocery stores to ecommerce platforms and subscription boxes.
Retail also involves more than just selling: pricing, merchandising, inventory, marketing, and customer service are all core parts of the retail process.
Whether online or offline, the goal is the same: meet consumer needs and encourage purchases.
What is a retailer?
A retailer is a business or individual that sells products or services directly to consumers, usually in small quantities, through physical stores, online platforms, or both. Retailers act as the final step between manufacturers or wholesalers and the end customer. Their job is to make products accessible, appealing, and easy to buy. This often includes curating product selections, managing inventory, offering customer support, and running promotions or loyalty programs.
Retailers can range from large chain stores like Target or Amazon to local shops, pop-up vendors, or ecommerce entrepreneurs running their own WooCommerce stores.
Understanding the supply chain in retail
The retail supply chain refers to the entire process of moving a product from the supplier to the end consumer. It includes everything from sourcing raw materials to managing inventory, fulfilling orders, and handling returns. An efficient supply chain ensures that the right products are available at the right time without inflating costs or missing sales opportunities.
Here are the main components of supply chain management in retail:
- Sourcing and procurement: Retailers work with manufacturers or wholesalers to acquire the goods they plan to sell. This step often includes vetting vendors, negotiating prices, and forecasting demand.
- Inventory management: Stock levels must be carefully monitored and adjusted. Too much inventory ties up cash and storage space, while too little risks losing customers to competitors.
- Warehousing and distribution: Products are stored in warehouses before being shipped to retail stores or directly to consumers. The goal is fast, cost-effective delivery.
- Order fulfillment: Especially for ecommerce, this phase involves picking, packing, and shipping orders quickly and accurately.
- Returns and reverse logistics: Managing returns efficiently is critical to keeping customers happy and recapturing value from unsold items.
Even small retailers can benefit from perfecting this process. Good supply chain management practices improve profit margins, support better customer experiences, and give businesses the agility to adapt to market shifts and seasonal trends.
Why does POS matter in retail?
A Point of Sale (POS) system is more than just a way to process payments. It’s actually the nerve center of a modern retail operation. Whether you sell in a physical store, online, or a combination of the two, a reliable POS system helps with sales, tracking inventory, and managing customers.
For brick-and-mortar retailers, a POS system speeds up checkout, manages returns, and tracks real-time stock levels. For online sellers, it syncs with ecommerce platforms to ensure that inventory and sales data stay consistent across all channels. With the right tools, you can reduce human error, improve customer experience, and get a clearer picture of your business performance.
Look for features like:
- Inventory tracking to avoid overselling and stockouts
- Sales reporting for smarter decision-making
- Customer profiles and purchase history to personalize service and boost loyalty
- Mobile checkout and payment flexibility to meet customers wherever they shop
The best systems integrate both in-store and online sales into one platform, making it easier to manage promotions, run reports, and scale as your business grows.
Investing in a unified Point of Sale (POS) system gives you more control, better insights, and a smoother retail experience for you and your customers.
Types of retail businesses (with examples)
Retail comes in many shapes and sizes. From massive department stores to niche online boutiques, each retail model serves customers in a unique way. Below are five common types of retail businesses, with examples to illustrate how each one works in practice.
Specialty stores
Specialty retailers focus on a specific product category, offering deep inventory and knowledgeable customer service. These stores attract shoppers looking for curated expertise.
Sephora is a well-known specialty retailer in beauty and skincare, offering both major brands and private-label products.
Department stores
Department stores offer a broad range of products, from clothing and electronics to home essentials, all organized into separate departments within a single location.
Macy’s operates both physical locations and an ecommerce site, blending in-store experiences with digital convenience.
Supermarkets and grocery stores
These stores focus on selling food, beverages, and household essentials. Many now offer online ordering, delivery, or curbside pickup to stay competitive.
Trader Joe’s builds a cult following with private-label goods and in-store exclusives, while stores like Kroger offer robust online grocery platforms.
Ecommerce stores
Online-only retailers operate through digital storefronts with no physical presence. They often use dropshipping or third-party logistics to manage inventory and shipping.
Fashion Nova scaled rapidly using social media and influencer marketing to sell affordable, fast fashion entirely online.
Omnichannel retailers
These businesses combine brick-and-mortar and online sales channels to give customers a seamless experience, whether they shop in person, online, or through mobile apps.
Target lets customers shop in-store, order online for delivery, or use in-app pickup, all backed by a centralized POS and inventory system.
Brick and mortar retail vs online shopping retail
Brick-and-mortar retail involves physical stores where customers shop in person. Online shopping retail happens through websites or apps, with products delivered to the buyer. The key difference is location: in-store retail offers hands-on experiences, while online retail offers convenience and broader reach. Many retailers now use both to meet customer expectations.
The future of retail
Retail is quickly moving toward a more connected and data-based future. As consumer expectations shift, retailers are adapting with smarter tools, faster fulfillment, and more personalized shopping experiences. Technology like AI, integrated POS systems, and ecommerce automation are now necessary to modern retail success.
Businesses that stay on top of these trends and invest in the right tech will be better equipped to meet customer needs, stay efficient, and remain competitive.
