What defines a vertical retailer?

A vertical retailer is defined by its business model, which entails designing and selling its own products directly to consumers. This approach allows the retailer to control the entire supply chain, from product development to retailing. By managing both the design and sales processes, vertical retailers can respond more swiftly to market trends and consumer preferences, offering products that align closely with their brand image.

This model often leads to cost efficiencies and improved profit margins since the retailer can bypass traditional wholesaling or distribution channels. Companies like Zara or Apple exemplify vertical retailing, as they both develop and market their products directly to consumers, without relying on third-party suppliers for their merchandise.

The other choices describe different types of retailing models, but do not encapsulate the essence of vertical retailing, which is characterized by controlling both design and distribution channels directly to the consumer.