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Forms of Retail

This document discusses different types of retail formats. It outlines 15 common retail formats including discount stores, factory outlets, supermarkets, hypermarkets, department stores, convenience stores, specialty stores, e-tailing, catalog retailers, warehouse stores, kirana stores, variety stores, shopping malls, direct response retailers, and automatic vendors. Each format is defined and an example is provided. The conclusion states that retail marketing is important to keep consumers updated on products and promotions to drive customer growth and retention.

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vaibhav4444
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152 views

Forms of Retail

This document discusses different types of retail formats. It outlines 15 common retail formats including discount stores, factory outlets, supermarkets, hypermarkets, department stores, convenience stores, specialty stores, e-tailing, catalog retailers, warehouse stores, kirana stores, variety stores, shopping malls, direct response retailers, and automatic vendors. Each format is defined and an example is provided. The conclusion states that retail marketing is important to keep consumers updated on products and promotions to drive customer growth and retention.

Uploaded by

vaibhav4444
Copyright
© Attribution Non-Commercial (BY-NC)
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Download as DOCX, PDF, TXT or read online on Scribd
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Marketing Applications and Practices

Types of Retail Formats

Prepared By Roll No.


Santosh Ghutukade 51
Vaibhav Patankar 37

Submitted To,
Professor Surbhi
Introduction
“Retailing includes all activities involved in selling goods or services
directly to final consumers for personal, non-business use. A retailer or retail store
is any business enterprise whose sales volume comes primarily from retailing.” A
retailer is a person, agent, agency, company, or organization which is instrumental
in reaching the goods, merchandise, or services to the ultimate consumer. Retailing
is the last stage of any economic activity where Retailer sells the product or service
to the end consumer. The distribution of consumer products begins with the
producer and ends at the ultimate consumer. Between the producer and the
consumer there is a middleman---the retailer, who links the producers and the
ultimate consumers.

A common assumption is that retailing involves only the sale of products in


stores. However, it also includes the sale of services like those offered at a
restaurant, parlor, or by car rental agencies. Retail is India's largest industry,
accounting for over 10 per cent of the country's GDP and around eight per cent of
the employment.
Types of Retail Formats
1. Discount stores
Discount stores are the General merchandisers that offer brand name Products at
lower prices to the consumers. Most discount department stores offer a wide
assortment of goods; others specialize in such merchandise as jewelry, electronic
equipment, or electrical appliances. These retailers are ready to accept lower prices
in exchange for high sales Volume. They offer a variety of perishable/ non
perishable goods. Example of Discount stores is subiksha, Piramal’s TruMart,
Wal-Mart the largest retailer in the world.

2. Factory outlets
Factory outlet is a retail store in which manufacturers sell their stock directly to the
public through their own branded stores. Factory outlets are the manufacturer
owned outlets that sell off Goods that cannot be sold through Traditional retailers.
Factory outlets are based on the concept of value positioning. These retailers Offer
medium-high quality goods at deep Discounts to the consumers.

3. Supermarkets

A supermarket, also called a grocery store, is a self-service store offering a wide


variety of food and household merchandise, organized into departments. It is larger
in size and has a wider selection than a traditional grocery store and it is smaller
than a hypermarket or superstore. Supermarkets are based on the concept of
scrambled merchandising, in which goods & services that are unrelated to one
Another are sold together. Example of supermarkets Nilgiris, Apna Bazaar.

4. Hypermarkets

Hypermarket is a superstore which combines a supermarket and a department


store. It caters to specific target market. A hyper market generally has an ambience
which attracts the family as whole. Hypermarkets allow customers to satisfy all
their routine weekly shopping needs in one trip. Typically they have business
models focusing on high-volume, low-margin sales. This type of retailing is
growing very fast. Example of hypermarket is Pantaloon retail’s Big Bazaar.
5. Department Stores

A department store is a retail establishment which specializes in satisfying a wide


range of the consumer's personal and residential durable goods product needs; and
at the same time offering the consumer a choice multiple merchandise lines, at
variable price points, in all product categories. A department store usually sells a
general line of apparel for the family, household linens, home furnishings and
appliances. Large format apparel department stores include Pantaloon, Ebony and
Pyramid. Others in this category are: Shoppers Stop and Westside.

6. Convenience stores

A convenience store is a small store or shop that sells items such as candy, ice-
cream, soft drinks, lottery tickets, cigarettes and other tobacco products,
newspapers and magazines, along with a selection of processed food and perhaps
some groceries. They are often located alongside busy roads, at gas/petrol stations
or near railway stations or other transportation hubs.

7. Specialty Store

Specialty stores are small stores which specialize in a specific range of


merchandise and related items .It consists of a narrow product line with deep
assortment. It include fashion apparel, jewelry, fabrics, sporting Goods, computers
etc. Example of specialty store Bata store deals only with footwear.

8. E-Tailing

E-Tailing is a retail format in which retailers communicate with customers and


offer products and services for sale, over the internet. It provides complete and
updated information on price, quality and styles through direct interaction with
consumer. Example of E- Tailing is Amazon.com, E-bay and Bazee.com,
HDFCSec.com.

9. Catalog Retailers
Catalog retailers are one who mail catalogues to their customers and maintain
showrooms where samples of the products for sale are displayed. The basic
attraction for shoppers is convenience. The advantages to the retailers include lover
operating costs, lower rents, smaller sales staff and absence of shop lifting. This
type of retailing saves consumer time.

10. Warehouse Stores

This is a form of mass discounter that often provides even lower prices than
traditional mass discounters.  In addition, they often require buyers to make
purchases in quantities that are greater than what can be purchased at mass
discount stores.  These retail outlets provide few services and product selection can
be limited. 60 – 70 percent of sales in these stores are wholesale Purchases by
hotels, restaurants, small retailers & Service firms. Membership cards are required
to gain entry into warehouse stores.

11. Kirana stores


Kirana stores are owned and operated on a small scale, usually in a space of
500sq.ft. Or less. The smallest retail formats which are the highest in number in
India. It mostly deals with food and glossaries item. Kirana stores are operated by
the owners themselves and thus provide the benefit of low operational costs.
Kirana stores are likely to be in the immediate locality and thus have a better
understanding of customer preferences.

12. Variety stores

A variety store or price-point retailer is a retail store that sells inexpensive items,
usually with a single price point for all items in the store. Typical merchandise
includes cleaning supplies, toys, and confectionery. It offer limited customer
service and employ few number of people. Because of its limited growth it is
moving towards specialty stores.

13. Shopping Malls

These are the largest form of retail formats. They provide an ideal shopping
experience by providing a mix of all kinds of products and services, food and
entertainment under one roof. Examples are Sahara Mall, TDI Mall in Delhi. They
lend an ideal shopping experience with an amalgamation of product, service and
entertainment, all under one common roof.
14. Direct response retailers

These types of retailers Advertise products on radio/TV & take mail or Telephone
orders and Take credit cards & operate 24 hrs. Example of direct response retailers
are Television shopping programs, home Shopping.

15. Automatic vendors


Automatic vending enhance customer Service inside traditional retail stores &
Provide convenient service where stores do not exist. Examples of automatic
vendors are ATMs & Airline ticket machine.

Conclusion
Retail marketing is important to keep consumers updated on new local available
products as well as promotion of incentive sales for customer growth and retention .
The nations that have enjoyed the greatest economic and social progress have been those
with a strong retail sector. There for retailer is one of the promotional channels for
promoting the product.

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