39003116 Types of Retailers

8/8/2019 39003116 Types of Retailers

http://slidepdf.com/reader/full/39003116-types-of-retailers 1/29

Types of Retailers

Chapter 2



Types of Retail



• Retail :- 2 Types

Traditional or UnorganizedRetail

Dominant share in retail salesSingle shopsSmall shops

No organized supply chainleast tax paid

Types of retail

Organized retailSmaller share in retail sales

Usually chainsLarge shops

Organized logistics and supply

chainTaxes paid



Types of Retailers

• Organized Retail share is small but expected to grow rapidly.• New formats (type of shops) have come up.

Food related

SupermarketsEg:- Spencer HypermarketsEg-Big Bazar

General Merchandise Related

Warehouse Clubs

Specialty Departmentstores

Eg:SSL/Pantaloons

Discount Stores

Departmental StoresShopping malls



Types of Retailers

Food Retailers

Mom and Pop Stores

Convenience Stores

Supermarkets

Supercenters

General Merchandise Retailers

Department Stores

Specialty Stores

Discount StoresCategory Specialists

Off-Price Retailers

Warehouse Clubs



Types of General MerchandiseRetailers

• Discount Stores• Specialty Stores

• Category Specialists

• Home Improvement Centers

• Department Stores

•Drugstores

• Off-Price retailers

• Value Retailers



New Types of Retailers

• Category Specialists-PetsMart

-Bed, Bath and Beyond

Wal-Mart Supercenters

-Supermarket + Discount Store

•Ebay, Priceline, Travelocity



Types of Food Retailers



Characteristics of General MerchandiseRetailers



Food Retailers

Mom and Pops –

Supermarkets-Cars, highways and TV to build brands

-Knowledgeable customers –

self service-Perishable vs. packaged goods

Big Box Retailers-Warehouse Clubs

-Supercenters-Hypermarkets

Convenience Stores



Issues in Food Retailing

Competition from Discount Stores

Changing Consumption Patterns

EfficientDistribution Lower Costs Lower Prices

Time Pressure Eating Out More Meal Solutions



Super Markets

• Conventional super markets are primarily self servicefood stores.

• They offer almost all items of daily necessity.

• Stores are around 30,000 sq. ft. in size.

• Are very promotional and have sales promotions roundthe year.



Super Markets.

• Offer their own discount coupons.

• Generally sell fast moving food/items at cost.

• Low prices ,self service.

• Provide neat/clean environment, fast check out counters andattractive organized layouts.



Hyper Markets

• Extremely large self service outlets.

• Are combination of discount stores and super stores.

• Built in large warehouse type covering.

• Size varies from 150,000 to 300,000 sq. ft.

• Stock over 50,000 different items.

• Highly volume driven• Operate on low margin and prices.• They are being called as Super Centers.



Specialty Stores

• Also called limited line stores.

• Attract customers by specializing a particular line of merchandise.

• Large variety in terms of width/depth

• Usually less than 18,000 sq. ft.

• Compared to departmental/discount stores

• Focus on narrow market segment /niche.

• Customers attracted by their deep assortments, personalizedservice and intimate stores atmosphere.

S i l S



Specialty Stores

Category specialists

• Similar to specialty & discount stores

• offering narrow variety/deep assortments.

• By offering complete assortment in a category, generatelarge volumes.

• category killers



Warehouse Stores/Warehouse Clubs

• Offer merchandize in “no frills” environment.

• Carry mostly non-food merchandize.

• Generally do not stock refrigerated or perishable items.

• The size ranges between 250,000 to 400,000 sq. ft.

• Profits are generated through club memberships.





Discount Stores

• Similar to departmental stores in many ways.

• Offers wide variety of merchandize.

• Limited service/discounted prices.

• Charge lower prices than departmental stores

• Low cost location/ Spartan atmosphere.

• Usually self service stores.



Discount Stores

• Sales people available only where needed

• Size usually varies from 80,000 to 150,000 sq. ft.

• Tend to offer more variety/less depth.

• Typically carry fewer brands/sizes in each category.



Departmental Stores

• Multi Tiered large stores.

• Stock vast range of products department wise.

• Look like collection of specialty operations under oneroof – one owner.

• Broad variety, deep assortment, higher level of customerservice.

• Are run on the principle of increased revenue throughhigh sales volumes.



Departmental Stores.

• In some situations departments within departmental stores areleased.

• A leased department in an area within a retail stores that is leasedor rented to an independent firm

• This is also termed as “shop-in-shop” concept.

• A promotional departmental stores is a specialty departmentalstores that sells most of its merchandize on weekly promotion.



Shopping Malls

• Malls are not retail stores in true sense.

• Signify common mall in which large no of stores arelocated.

• Apart from monthly rentals, promoters also take % ofsales from each tenant.



Merchandise Offering

• Variety (breadth of merchandise)- The number of merchandise categories

Assortment (depth of merchandise)

-the number of items in a category (SKUs)



Category Specialists

Deep and Narrow Assortments – Destination Stores

Low Price and Service

Wholesaling to Business Customers and Retailing to

ConsumersIncredible Growth

Increased Competition with National Expansion andConsolidation



Non-store Retail Formats

Electronic Retailing

Catalog and Direct Mail

Direct Selling

Television Home Shopping

Vending Machines



Types of Nonstore Retailers



Types of Retail Ownership

Independent, Single Store Establishments

Consumer Owned Cooperatives

Wholesaler Owned Cooperatives

Corporate Chains

Franchises



Thankyou

39003116 Types of Retailers

Documents