Demand Efficiency: Retail

Supply can be delivered to Effective Demand through 2 ways:

1. Retail

2. Commerce

Demand is readily addressed by retail, as opposed to wholesale which trades items in bulk.

The capital and labor of wholesale is designed to work with bulky items, whereas those of retail can work with smaller items that can be sold individually per person.

Small Retail and Marketplaces

A shop is the most common retail establishment whether in ancient or modern times. This is because it requires the least capital and labor.

A shop can be run well by only 1 person, whereas a large retail shop cannot.

As such, shops deal with niche products and servies and are can be more sustainable than large retail.

Some shops can last as long as their owners, while others last for many generations when handed down from parent to child.

To increase demand efficiency, shops are grouped together into marketplaces. This is situated in an accessible place where more people can gather.

Historically, this was near the city center which was near the home or palace of the ruler. This is also so that the ruler can extract tax payments more conveniently.

Large Retail

The invention of airconditioning led to the creation of malls and large retail establishments. This is frequently larger than a marketplace.