In relation to consumer packaged goods (CPG), a retailer is a business entity that sells products directly to consumers. Retailers act as intermediaries between the manufacturers or producers of CPG and the end consumers. They purchase products from manufacturers or distributors in bulk and then offer them for sale to the general public through physical stores, online platforms, or a combination of both.
The role of retailers in the CPG industry is crucial as they play a significant part in the distribution and marketing of these products. They provide a convenient and accessible point of purchase for consumers and are responsible for showcasing and promoting the products they carry. Retailers also handle logistics, inventory management, and customer service, making the products available to consumers in various locations.
There are various types of retailers in the CPG industry, including:
Grocery Stores: Supermarkets and grocery stores are major retailers of CPG products, offering a wide range of food and household items.
Mass Merchandisers: Large retail chains that offer a mix of products, including CPG, at discounted prices. Examples include Walmart and Target.
Pharmacies and Drugstores: These retailers focus on health and personal care products, along with some household essentials.
Convenience Stores: Smaller stores that provide quick and accessible purchases, often focusing on snacks, beverages, and other daily essentials.
Online Retailers: E-commerce platforms like Amazon and online grocery delivery services have become significant players in the CPG space.
Specialty Stores: Niche retailers that cater to specific product categories, such as electronics, cosmetics, or pet supplies.
In summary, retailers in the context of CPG are the entities responsible for making consumer packaged goods available to the public and providing a crucial link between the manufacturers or producers and the end consumers. They contribute to the overall distribution, marketing, and accessibility of CPG products in the marketplace.