TYPES OF RETAIL

RETAIL Retail is the sale of goods and services from

individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery.

BASIS 1: FORM OF OWNERSHIP Independent Chain Franchising Co-operative

BASIS 2: STORE STRATEGY MIX/ STORE BASED. Convenience Store Conventional Supermarket Super Store Combination Store/Hyper Market Specialty Store Traditional Department Store Off price Retailing Factory outlet Mom-and-pop Stores Kiosks Discount Stores

BASIS 3: NON STORE OPERATIONS Telephone Retailing Catalog Retailing Vending Machines Membership Club Street Vendors Direct Selling E-Retailing

INDEPENDENT STORE An independent retail shop must meet the

following criteria: the business is run by an individual,

partnership or a proprietary company (does not include a public company or a related corporation)

the number of people engaged at any one time in the shop including the owner is not over 20

the number of people engaged by the owner of the business in all shops throughout the State is not more than 60 at any one time.

CHAIN RETAIL STORE

Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices.

FRANCHISE RETAIL STORE

Franchising is the practice of using another firm's successful business model

Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a franchisee, to use the supplier's trademark and distribute the supplier's goods. In return, the operator pays the supplier a fee.

RETAIL CO-OPERATIVE an organization for the collective

purchase and sale of goods by a group who share profits or benefits. Retail cooperatives were the first offshoot of the cooperative movement and profits were originally shared among members through dividend payments proportionate to a member's purchases.

CONVENIENCE STORE A convenience store, corner store,

corner shop, or bodega is a small store that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, tobacco products, and news papers services. They differ from general stores and village shops in that they are not in a rural location and are used as a convenient supplement to larger stores.

CONVENTIONAL SUPERMARKET

A large, self-service, retail food store (up to 30,000 square feet), with moderate pricing and selection, and annual sales in the $2 to $8 million range. Usually includes a meat, produce, dairy, and grocery department

SUPERMARKET A supermarket, a large form of the

traditional grocery store, is a self-service shop offering a wide variety of food and household products, organized into aisles. It is larger in size and has a wider selection than a traditional grocery store, but is smaller and more limited in the range of merchandise than a hypermarket or big-box market.

HYPERMARKET

In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine shopping needs in one trip.

 

SPECIALTY STORE

Specialty stores are small stores which specialize in a specific range of merchandise and related items. The pricing policy is generally in the medium to high range, depending on factors like the type and exclusivity of merchandise and ownership.

TRADITIONAL DEPARTMENT STORE: Is a large retail unit with an extensive

assortment of goods and services that are organized into separate departments for purposes of buying, promotion, service and control.

Has a great selection of general merchandise and is often the anchor store in a shopping center or district, and is usually part of a chain.

Pricing is moderate to above average, service levels are medium to high.

FACTORY OUTLET Is a manufacturer owned store selling

manufacturer closeouts, discontinued merchandise, irregulars, cancelled orders and sometimes in season first quality merchandise

MOM-AND-POP STORES

These are small family-owned businesses, which sell a small collection of goods to the customers. They are individually run and cater to small sections of the society. These stores are known for their high standards of customer service.

KIOSKS Kiosks are box-like shops, which sell

small and inexpensive items like cigarettes, toffees, newspapers and magazines, water packets and sometimes, tea and coffee. These are most commonly found on every street in a city, and cater primarily to local residents.

DISCOUNT STORE A discount store is a

type of department store, which sells products at prices lower than those asked by traditional retail outlets. Most discount department stores offer a wide assortment of goods; others specialize in such merchandise as jewelry, electronic equipment, or electrical appliances.

TELEPHONE RETAILING Telemarketing refers to a sales person

initiating contact with a shopper and closing a sale over the telephone.

Many product that can be bought without being seen are sold over the telephone. Eg: pest control devices, magazine subscriptions, credit cards etc.

CATALOG SHOWROOM A catalog merchant (catalogue

merchant in British. Unlike a self-serve retail store, most of the items are not displayed; customers select the products from printed catalogs in the store and fill out an order form. The order is brought to the sales counter, where a clerk retrieves the items from the warehouse area to a payment and checkout station.

VENDING MACHINE A vending machine is a machine which

dispenses items such as snacks, beverages, alcohol, cigarettes, lottery tickets, cologne, consumer products and even gold and gems to customers automatically, after the customer inserts currency or credit into the machine.

OFF PRICE RETAILING Off-price companies serve a special

niche in the retail industry, capitalizing on volatility in consumer demand and mistakes made by designers and full-price retail outlets to keep their stores stocked with new low-price products.

MEMBERSHIP CLUB appeals to price conscious customers

who must be members to shop here. It is positioned between wholesaling and retailing.Members pay a nominal membership fee and buy at wholesale prices.

STREET VENDORS

Street vendors, or hawkers who sell goods on the streets, are quite popular in India. Through shouting out their wares, they draw the attention of customers. Street vendors are found in almost every city in India, and the business capital of Mumbai has a number of shopping areas comprised solely of street vendors. These hawkers sell not just clothes and accessories, but also local food.

DIRECT SELLING Direct selling is the marketing and

selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the one-on-one demonstrations, and other personal contact arrangements as well as internet sales.

ELECTRONIC RETAILING - E-TAILING

The sale of goods and services through the Internet. Electronic retailing, or e-tailing, can include business-to-business and business-to-consumer sales. E-tailing revenue can come from the sale of products and services, through subscriptions to website content, or through advertising.

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