Retail Formats & Types

Retail Formats & Types

Retail formats refer to the various types of retail establishments designed to meet different consumer needs and preferences. These formats include department stores, specialty stores, discount stores, and online retailers, each serving distinct purposes and targeting specific consumer segments.

Ownership-Based Retailing

  • Independent Retailers:
    • Characteristics: Single shops operated independently, often family-owned and passed down through generations.
    • Example: Stand-alone grocery shops, florists.
    • Benefits: Strong personal relationships with customers, flexibility in policies.
  • Chain Stores:
    • Characteristics: Multiple outlets under common ownership offering similar merchandise, tailored to local preferences.
    • Example: Westside Stores, Shoppers Stop.
    • Benefits: Brand recognition, economies of scale, consistent customer experience.
  • Franchises:
    • Characteristics: Operate under established brand names through agreements between franchisers and franchisees.
    • Types: Business format (e.g., Pizza Hut) and product format (e.g., Amul ice cream parlors).
    • Benefits: Brand recognition, support from franchiser, established business model.
  • Consumers Co-Operative Stores:
    • Characteristics: Owned and run by consumers to provide essentials at reasonable costs.
    • Example: Sahakar Bhandar in India, Puget Consumers Food Co-Operative in the northern US.
    • Benefits: Lower prices for members, community-oriented.

Merchandise-Based Retailing

  • Convenience Stores:
    • Characteristics: Small stores offering basic essentials, often open late or 24/7.
    • Example: 7-Eleven.
    • Benefits: Convenience, quick shopping experience.
  • Supermarkets:
    • Characteristics: Large stores with high volume, low-profit margins, offering a wide range of food items, groceries, and household items.
    • Example: Food Bazaar.
    • Benefits: Variety of products, competitive prices.
  • Hypermarkets:
    • Characteristics: Large retail stores with vast selling spaces offering a wide range of products, including non-grocery items.
    • Example: Big Bazaar.
    • Benefits: One-stop shopping, extensive product range, additional amenities like restaurants.
  • Specialty Stores:
    • Characteristics: Focus on a particular kind of merchandise with high-level service and product information.
    • Example: Croma for electronics.
    • Benefits: Expertise in specific product categories, personalized service.
  • Departmental Stores:
    • Characteristics: Multi-level stores offering a variety of items across food, clothing, and household categories.
    • Example: Marks & Spencer.
    • Benefits: Wide product assortment, convenient shopping experience.
  • Factory Outlets:
    • Characteristics: Sell excess or discounted merchandise, often located near manufacturing units.
    • Example: Nike factory outlets.
    • Benefits: Discounted prices, access to excess inventory.
  • Catalogue Showrooms:
    • Characteristics: Provide product catalogues for consumers to refer to, with products delivered from the company's warehouse.
    • Example: Argos.
    • Benefits: Convenience, reduced need for large retail space.

Non-Store Based (Direct) Retailing

  • Mail Orders/Postal Orders/E-Shopping:
    • Characteristics: Consumers place orders via mail or online after referring to product catalogues.
    • Example: Online shopping.
    • Benefits: Convenience, access to a wide range of products from home.
  • Telemarketing:
    • Characteristics: Products advertised on television with orders placed by calling the retailer’s number, followed by delivery.
    • Example: Asian Skyshop.
    • Benefits: Direct engagement with consumers, impulse buying opportunities.
  • Automated Vending/Kiosks:
    • Characteristics: Offer frequently purchased items round the clock, such as drinks, candies, and newspapers.
    • Example: Vending machines.
    • Benefits: 24/7 availability, convenience.