Types of retail outlets

San Juan de Dios Market in Guadalajara, Jalisco

Inside a supermarket in Russia

A marketplace is a location where goods and services are exchanged. The traditional market square is a city

square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless

such markets are still in operation around the whole world.

In some parts of the world, the retail business is still dominated by small family-run stores, but this market is

increasingly being taken over by large retail chains.

Retail is usually classified by type of products as follows:

 Food products

 Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting goods, etc.

 Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

 Department stores - very large stores offering a huge assortment of "soft" and "hard goods; often bear a

resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has

broad assortment at average price. They offer considerable customer service.

 Discount stores - tend to offer a wide array of products and services, but they compete mainly on price offers

extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-

oriented brands.

 Supermarkets - sell mostly food products;

 Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on pallets or steel

shelves; warehouse clubs charge a membership fee;

 Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy

individuals).

 Mom-And-Pop (or Kirana Stores as they call them in India): is a retail outlet that is owned and operated by

individuals. The range of products are very selective and few in numbers. These stores are seen in local

community often are family-run businesses. The square feet area of the store depends on the store holder.

 Specialty stores: A typical speciality store gives attention to a particular category and provides high level of

service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store.

However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store

then they find just Reebok and Gap products in the respective stores.

 General store - a rural store that supplies the main needs for the local community;

 Convenience stores: is essentially found in residential areas. They provide limited amount of merchandise at

more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases.

 Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating

cost is comparatively less than other retail formats. A classic example is the Metro™ in Bangalore.

 Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items.

They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-

40,000 square feet. Example: SPAR™ supermarket.

 Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment

under a roof. Example: Sigma mall and Garuda mall in Bangalore, Express Avenue in Chennai.

 Category killers or Category Specialist: By supplying wide assortment in a single category for lower prices a

retailer can "kill" that category for other retailers. For few categories, such as electronics, the products are

displayed at the centre of the store and sales person will be available to address customer queries and give

suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail

store is present in the vicinity. For example: Pai Electronics™ store in Bangalore, Tata Croma.

 E-tailers: The customer can shop and order through internet and the merchandise are dropped at the

customer's doorstep. Here the retailers use drop shipping technique. They accept the payment for the product

but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for

customers who do not want to travel to retail stores and are interested in home shopping. However it is important

for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon

and Ebay.

 Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in

machine and acquire the products. For example: Soft drinks vending at Bangalore Airport.
Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level

they target.

Other types of retail store include:

 Automated Retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The

stores accept credit cards and are usually open 24/7. Examples include ZoomShops andRedbox.

 Big-box stores encompass larger department, discount, general merchandise, and warehouse stores.

 Convenience store - a small store often with extended hours, stocking everyday or roadside items;

 General store - a store which sells most goods needed, typically in a rural area;

Retailers can opt for a format as each provides different retail mix to its customers based on their customer

demographics, lifestyle and purchase behaviour. A good format will lend a hand to display products well and entice

the target customers to spawn sales.