Independent Retailer: Definition & Advantages

Defining Independent Retailer An independent retailer is someone who has started their own retail business independently, and not as part of a franchise chain. Their businesses are sometimes referred to as mom-and-pop stores.

The independent retailer buys merchandise from manufacturers, wholesalers or distributors at wholesale prices, and then sells them through his store to the end consumer at higher retail prices. The difference in value between both prices is the gross profit for the retail business.

This gross profit is then used to pay rent, employee costs, and other operating expenses, and the remaining is the pre-tax profit for the business.

Advantages of Being an Independent Retailer Freedom and Flexibility One of the primary advantages of being an independent retailer is having the freedom and flexibility to make decisions that will best benefit your business…