Retail Formats
Jul 30, 2015
Formats in Retailing
Based on Ownership
Based on store-based retail mix
Non-store retailing
Retailing Formats
Independent - single outlet / store Chain - multiple outlets / stores Franchising - rights to use trademarks, formats &
processes Leased department (“shop-in-shop”) - given to
outside parties Vertical marketing system- more than one member
of channel owned by a single firm Consumer Cooperative - retail firms owned by
consumers
Formats in Retailing Based on Ownership
Wheel of Retailing
Explains the Institutional changes that take place when Innovators enters the retail arena.
(McNair,1931)
Wheel of Retailing
Low-end Strategy Low-prices Limited facilities and services Price-sensitive Consumers
Medium Strategy Moderate prices Improved facilities Broader base of value and service conscious
consumers
High-end Strategy High prices Excellent facilities and services Upscale consumers
A. Food-oriented: Convenience store Supermarket Superstore Combination store Warehouse Club / Warehouse storeB. General Merchandise : Specialty store Department store discount store Variety store Factory outlet /Seconds outlet Membership club
Formats in Retailing Based on Store-based Retail Mix
Characteristics of Retail Stores
Format LocationAddition to
Food Pricing Ambience / ServiceWidth Depth
A. Food-oriented:Convenience store N M L Nil M MSupermarket N H H Nil L M
Superstore S H H
Health, beauty , Gen. Merch. L M
Combination store S / O H HDrugstore, Gen. Merch L L
Warehouse Club / Warehouse store O H H Gen. Merch L L
B. General Merchandise :Speciality store S L H L M / HDepartment store S H H M / H M / Hdiscount store S / O H H L M Variety store S / O H H M LFactory outlet /Seconds outlet O L L L LMembership club O L L L L
Range
Legend: N = Neighborhood, S = Shopping centre, O =Outskirts , H = High, M = Medium , L = Low
Formats in Retailing - Non store
Types:
•Direct Selling - word -of-mouth / person-to-person
•Direct Marketing - on Mail, phone, fax or computer
•Electronic / Internet Retailing - on the Internet
•Vending machines / kiosks - through machines, non-personal
Other Classification
All the formats are
broadly Classified as under
Value Retailing Lifestyle Retailing
•Independent of growth in purchasing power•Prominent during initial stages of Organized retailing
•Driven by purchasing power Growth•Driven by Lifestyle aspirations and changing consumer mindset
Discount StoresHypermarket
Department StoresSpecialty Stores
Dollar Store – A Snap shot
17 Physical Stores in IndiaProduct CategoriesHouse wares KitchenwareFlowers StationeryGift items PartysuppliesApparel Health & BeautyCandles SeasonalOffice supplies FoodAutomotive Electronic &
Hardware