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Retail Class3

The document discusses different types of retailers including food retailers like mom and pop stores, convenience stores, supermarkets, and supercenters as well as general merchandise retailers like department stores, specialty stores, discount stores, and category specialists. It also covers issues facing different retailer types, strategies for reducing costs, and trends in retail ownership models like franchising.

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Subindu Halder
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64 views

Retail Class3

The document discusses different types of retailers including food retailers like mom and pop stores, convenience stores, supermarkets, and supercenters as well as general merchandise retailers like department stores, specialty stores, discount stores, and category specialists. It also covers issues facing different retailer types, strategies for reducing costs, and trends in retail ownership models like franchising.

Uploaded by

Subindu Halder
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 33

Types of

Retailers

1
Types of Merchandise Retailers

Food Retailers General Merchandise Retailers

Department Stores
Mom and Pop Stores Specialty Stores
Convenience Stores
Supermarkets Discount Stores
Supercenters Category Specialists
s
Food Retailers

● Channel preference for food shopping channel where


grocery purchasers do most of their food shopping:
○ Mom and Pop
○ Convenience Stores
○ Supermarkets
○ Supercenters
Mom and Pop
and Convenience Store

● Tailors assortments to local market


● Makes more convenient to shop
● Offers fresh, healthy food
● Fast, casual restaurants
● Financial services available
● Opening smaller stores closer to
consumers (like airports) 24x 7
● https://www.youtube.com/watch?v=IsiZzOwTpG
A
Supermarkets
Conventional supermarkets
Reliance Fresh is an example of
limited assortment supermarket
market
○ 30,000 SKU
●Limited assortment supermarkets
(extreme value food retailers)
○ 2000 SKU
○ Offer one or two brands and sizes
○ Designed to maximize efficiency and reduce
costs
○ Offer merchandise at 40-60% lower prices
than conventional supermarkets
Food Bazaar, Foodworld:India's
Supermarkets

ALDI provides quality merchandise at low prices by reducing its


assortment in order to control store operating expenses
Strategy

Cheap..
Only two brands of toilet paper and one brand of pickles

• STRATEGY:
Stores sell less products
ALDI exclusive label
High quality of products at cheaper prices

• HOW?
Strong control over quality and price
Simplify shipping and handling
Reduce labor costs by keeping limited store staff, etc.
Characteristics of Food Retailers
Supercenters

Supercenters (Hypermarkets)

● The fastest growing retail


category
● Large stores (185,000 square feet)
that combine a supermarket with
a full-line discount store
● One-stop shopping experience
● https://www.youtube.com/wat
ch?v=q03UaYczD5w
Big Bazar Silchar

10
Characteristics of
General Merchandise
Retailers
Issues in Department Store Retailing

● Competition
○ Discount Stores on Price
○ Specialty Stores on Service, Depth of
Assortment
● Lower Cost by Reducing Services
○ Centralized Cash Wraps
● More Sales
○ Customers Wait for Sale
● Focus on Apparel and Soft Home
● Develop Private Labels and Exclusive
Brands
● Footfall
● Destination issues
JC Penny Inside

13
Top Five stores in NY

14
15
16
Issues in Specialty Store Retailing
● Apparel Retailers
● Decline in Mall Shopping
and Apparel Sales in US and
a rise in India
○ Lack of New Fashions
○ Less Interest in Fashion
○ Increased Price Consciousness
● Lifestyle Formats
○ ZARA
○ Tommy Hilfiger
○ Vanhuesen/ LP
○ W
● Manufacturers opening their
own stores
Collete concept fashion Speciality store

18
Category Specialists

Deep and Narrow Assortments


Destination Stores
Category killers
Low Price and Service
Wholesaling to Business Customers and
Retailing to Consumers
Incredible Growth HOME Depot Nalli

https://www.youtube.com/watch?v=PpVKqLiVg7k
Harrods

20
Types of Retail Ownership

● Independent, Single Store


Establishments
○ Wholesale-sponsored
voluntary group
● Corporate Retail Chains
● Franchisess

(c) Brand X Pictures/PunchStock


Retailers Using
Franchise Business Model
Franchising

● 30 – 40% of US Retail Sales In


INDIA Fastest growinhg
● Franchisee Pays Fixed Fee Plus
% of Sales
● Franchisee Implements Program
● Why is this Ownership Format
Efficient?
25
Reasons for Franchising Growth

Technological advances

Profitable utilization of capital resources

Attainment of the “American Dream”

Demographic expansion

Product/service consistency
Reasons for Franchising Failure

Inept management

Fraudulent activities

Market saturation
Franchisor Positions
in the Marketing Channel

Manufacturer - retailer

Manufacturer - wholesaler

Wholesaler - retailer

Service sponsor - retailer


Franchisor Benefits

Continuous market

Market information

Money

Royalty fees

Sales of products

Rental and lease fees

License fees

Management fees
Franchisee Benefits

Initial Services

•Market survey and site selection, facility design and layout, lease negotiation
advice, financing advice, operating manuals, management training programs, and
employee training.

Continuous Services

•Field supervision, merchandising and promotional materials, management and


employee retraining, quality inspection, national advertising, centralized
purchasing, market data and guidance, auditing and record keeping, management
reports, and group insurance plans.
Franchisor Advantages/Disadvantages

Advantages
•Rapid expansion, highly motivated franchisees
do a good job, additional profits by selling
franchisees products and services.

Disadvantages
•Company-owned units may be more profitable,
less control then independent retailers over
advertising, pricing, personnel practices, etc.
Franchisee Advantages/Disadvantages

Advantages

•Established/proven product/service, business and technical


assistance, and reduction in risk.

Disadvantages

•Loss of control since only semi-independent, franchisee outlets may


compete with corporate-owned outlets, and high royalties, fees, costs on
equipment, supplies, merchandise, rental/lease rates and mandatory
participation in promotional and support services.
Franchising Trends for the New Millennium

Sustained growth

Enduring plus un-imagined applications

International expansion

Increasing tensions

Greater emphasis on financial returns

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