In thinking about the channel structure, the level of difficulty a manufacturer experiences in getting retailers to purchase its products is determined by all of the following except the degree to which the channel is horizontally integrated.
In contrast to wholesale, which is the sale of goods and services to companies or institutional clients, retail is the sale of goods and services to consumers. A retailer makes bulk purchases of products from manufacturers, either directly or via a wholesaler, and then makes a profit by selling them to customers in smaller quantities. The chain of distribution connecting producers and consumers ends with retailers.
Retailers and stores have been around since the beginning of time. Itinerant peddlers were some of the oldest types of sellers. Retail establishments over time developed into the sophisticated shopping malls of the current era from little more than "rude booths." In the age of the internet, more and more merchants are trying to reach bigger consumers by selling through various channels, such as brick-and-mortar stores.
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