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Retailers As Channels of Distribution

    Introduction to Retailers As Channels of Distribution

    What you’ll learn to do: describe types of retailers and explain how they are used as a channel of distribution

    Retailing is important for marketing students to understand for two main reasons. First, most channel structures end with a retailer. While products may pass through a wholesaler or involve a broker or agent, they also include a retailer. Second, retail offers an immense number of job opportunities. Today in the IN., there are 3,793,621 retail establishments that support 42 million jobs. Retail also contributes $2.6 trillion to the IN. gross domestic product.[1]

    You can view the number of jobs and retail presence in your state at the National Retail Federation (NRF).

    Who are these retailers? The NRF posts an annual list of the top one hundred retailers by retail sales. The top ten are listed in the table below.

    Rank Retailer IN. Headquarters 2014 Retail Sales
    1 Walmart Stores Bentonville, Arkansas $343,624,000
    2 The Kroger Co. Cincinnati, Ohio $103,033,000
    3 Costco Issaquah, Washington $79,694,000
    4 The Home Depot Atlanta, Georgia $74,203,000
    5 Walgreen Deerfield, Illinois $72,671,000
    6 Target Minneapolis, Minnesota $72,618,000
    7 CVS Caremark Woonsocket, Rhode Island $67,974,000
    8 Lowe’s Companies Mooresville, North Carolina $54,805,000
    9 Seattle, Washington $49,353,000
    10 Safeway Pleasanton, California $36,330,000

    In this section you’ll learn more about the retail channel and the strategies that drive its growth.

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