4.Retail Formats

8/3/2019 4.Retail Formats

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TYPES OF RETAILERS



CLASSIFYING RETAIL

OUTLETS

1.On the Basis of Ownership

1.On the basis of Merchandise



IndependentRetailers-one store

ownership

Chain Stores-many storesbut only one owner

Franchises-many ownersof many stores

CLASSIFICATION BY OWNERSHIP

Cooperatives – memberconsumers are the owners

Leased



Independent Retailer

Owns and operate only one retail outlet

Managed by owner / proprietor and a fewother family members ( Generation shops)

Local baniya / Kirana store / paanwala

One to one rapport with customer Limited bargaining power with supplier



Kirana stores



Chain Retailer

Two or more outlets under commonownership

Commonality in terms of BUYING ,MANAGEMENT, MERCHANDISE ,AMBIENCE ,ADVERTISING ,PROMOTIONS

Very high bargaining power with supplier



Chain stores



Franchising

Contractual agreement between franchiser and franchisee which allows

the franchisee to conduct business under an established name as per a

particular business format in return for a fee or a compensation .

Such type of ownership enriches the Franchiser as the Franchisee are

entrepreneur who bring their business skills to grow the business of

Franchisers.

Ineffective / Bad Franchisee may harm the reputation of the Franchiser

Such a system does not allow Territorial exclusivity .



Product andTrade NameFranchising

BusinessFormat

Franchising

Dealer agrees to sell certainproducts provided by a

manufacturer, but can use any salestactics he chooses.

Archie's , Auto dealers

Dealer must sell the franchiser’s

product in the exact way thefranchiser prescribes.

Ex – McDonalds, Planet FashionStores

BASIC FORMS OF FRANCHISING



Product and Trade Name Franchising



Business format Franchising



Cooperatives

Consumers invest in the enterprise

Profits are distributed among the members as dividends

Stores managed by elected officials

Apna bazar ,Super bazar ,Kendriya bhandar ,Sahakari

bhandar



Cooperatives



Leased Department

Also termed as Shop-in Shops

A section of a space is leased to an outside party

Retailer expands its product offering to thecustomers

Perfumes / cosmetic counters in departmentstores

The owner of leased department is responsiblefor all aspects of its business and normally pays a

percentage of sales as rent . The store sets operating restrictions for the

leased department to ensure overall consistencyand coordination .



Shop in Shop



Convenience Stores

Supermarkets

Departmental Stores

Hypermarkets

Specialty Stores

Category Killers

Catalogue Retailing

CLASSIFICATION BY MERCHANDISE

Warehouse Clubs

Kirana Store



Kirana Stores

Neighborhood / residentialareas / Independentretailers

Food oriented

Eased / personalized/emergency purchase

2-3 times a week

Convenience products

Open for long hours Home delivery and monthly

credit

C i



Convenience stores

Food oriented store open for long hours Moderate number of items (more than kirana )

The store size is relatively larger than kirana and provides bettercustomer service in terms of ambience ,packaging , presentation andquality.

Prices are not as competitive as other formats like supermarket butcertainly competitive than the Kirana stores.

The ease of shopping at convenience store in terms of time andimpersonal nature of supermarket makes these stores more appealing

According to FMI : A small local store selling mostly grocery , openuntil late at night or even 24 hours a day and is abbreviated as c store.

HP Speed mart, In and Out

The store size is 3000-8000 sq ft



Convenience stores



Supermarkets

Stores offering food and groceries and limitedrange of general merchandise i.e. health andbeauty aids , gift items .

Large stores ,low cost , low margin , high volume 85% food and grocery items

Impulse buying

8000-20000 sq ft Nigiris , Foodworld, Subhiksa , Food Bazar ,

Spencers, Spinach ,more , Reliance fresh



Supermarket



Superstores

The expanded supermarket withmerged drug stores / generalmerchandise but still dominated by

food and grocery item

30,000-50,000 sq.ft

20-25% general merchandise



Superstores



Combination Store

Superstores +full line pharmacy(general merchandise /health andbeauty care/pharmacy accounts for

40% of sales)

Upto 1lakh sq.ft



Departmental Store

Large stores selling several product lines with eachoperating as a department under one roof.

Product mix is largely non food like apparel , accessories,books , music , footwear .

20000- 40000 sq. ft.

Target customers are not price conscious

Ambience / VM plays important role.

National brands as well private labels

Merchandise return policy and loyalty programs

Anchors in a shopping mall

They help in attracting high traffic 30% conversion rates

Atleast 50 employees

50000- 100000 SKU’s

Shopper’s Stop , Pantaloon , Lifestyle , Westside , Globus



Departmental Store



Hypermarkets Derived from the French word Hypermarche

which is a combination of a supermarket and adepartment store .

Also termed as supercentres.

Carrefour started first hypermarket in 1963

A store with 80000-2,20000 sqft. with at least35% of selling space devoted to non groceryproduct like clothes , jewellery , hardware ,sports equipment , books , CD’S /DVD’S , Video’s, TV , electric equipments .

One stop shopping

Big Bazaar , Star India Bazaar , Hypercity , vishalmegamart, Spencers



Hypermarkets



Specialty Store A retail store specializing in a particular type of

merchandise or single product line with deepassortments in that product line

Such business model is characterized by highlevel of customer service or product information

Concentrate on apparel , jewellery ,drugs, fabrics, sporting goods , Car / Scooters , furniture etc.

8000 sq.ft. Reliance Trends ,Reliance footprints ,Reliance

digital,Reliance wellness , Proline fitness centre ,Croma , Kings electronics , Health and Glow ,Crossword,Car dealers



Specialty Store



Category Killers

A specialty retailer who offers a very largeselection in the chosen product categoryand economical prices

Focus on one product category, they stockdeep , dominate the product category

20,000-1,20,000 sq.ft.

Nalli’s sarees, The loft, Toys Kemp



Category Killers



Catalogue Retailers

A retail outlet selling durableproducts and other high mark-upmerchandise from a catalogue.

BUYER'S choose items from thecatalogue and complete an orderform which is then processed in –

store .



Catalogue Retailers



Warehouse Clubs

A limited-service merchantwholesaler that sells appliances,household items, and groceries on a

cash-and-carry basis to members,usually small businesses and groups.

Metro cash and carry , Shoprite



Warehouse Clubs



Others---

Factory outlet /Discount stores

Single price stores

Flea Market



Factory outlet /Discount stores

R il F i I di



Retail Formats in India

Format Examples

Convenience store Stores in petrol pumps like HP Speed mart, In and Out.

Supermarkets Nigiris , Foodworld, Subhiksa , Food Bazar , Spencers,Spinach ,more , Reliance fresh

DepartmentalStores

Shopper’s Stop , Pantaloon , Lifestyle , Westside , Globus .

Hypermarket Big Bazaar , Star India Bazaar , Hypercity , vishalmegamart, Spencers

Specialty Stores Reliance Trends ,Reliance footprints ,Reliancedigital,Reliance wellness , Proline fitness centre , Croma ,Kings electronics , Health and Glow , Crossword

Category Killers Nalli,s sarees, The loft, Toys Kemp

Catalogue Retailing Burlingtons

Warehouse Clubs Metro cash and carry , Shoprite

Discount stores Max ,Brand factory ,Megamart ,

Promart ,, The loot , TruMart



Non store-based Retail Formats

Direct Selling

Street Peddling

Interactive TVMail-Order

Internet

Automated Merchandising Systems



Direct Selling



Street Peddling



Automated Merchandising Systems



Service

Banks

Hotels

Hospitals Education

Airlines

Car Rentals Housekeeping



http:\\www.stores.org www.magazinesofamerica.com www.retailreporting.com www.risnews.com www.retailangle.com

www.retailtraffic.com

Magazines Image retails Collectorsretail.

Newsletter l from BIMTECH (Birla Institute of Management) Newsletter from www.pantaloon.com

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http://www.retailreporting.com/

http://www.risnews.com/

http://www.retailangle.com/

http://www.retailtraffic.com/

http://www.pantaloon.com/

http://www.pantaloon.com/

http://www.retailtraffic.com/

http://www.retailangle.com/

http://www.risnews.com/

http://www.retailreporting.com/

http://www.magazinesofamerica.com/

4.Retail Formats

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