Types

of
Retailers
 One of the reasons the retail industry is so large and
powerful is its diversity.
 Beyond the distinctions in the products they provide, there
are structural differences among retailers that influence their
strategies and results.
 For example, stores vary in size, kinds of services provided, the
assortment they carry, and in their ownership and management
structures.
 Department Stores:
 A department store is a set-up which offers wide range of
products to the end-users under one roof.
 The consumers can get almost all the products they aspire to
shop at one place only.
 Each type of merchandise is typically displayed in a
different section or department within the store.
 Merchandise:
 Electronic Appliances
 Apparels
 Cosmetics
 Footwear
 Sportswear
 Toys
 Books
 CDs, DVDs
 Examples - Shoppers Stop, Pantaloon
 Discount Stores
 Discount stores also offer a huge range of products to the
end-users but at a discounted rate.
 The discount stores generally offer a limited range and the
quality in certain cases might be a little inferior as compared
to the department stores.
 Merchandise:

 Almost same as department store but at a cheaper price.

 Supermarket

 A retail store which generally sells food products and

household items, properly placed and arranged in specific
departments is called a supermarket.
 A supermarket is an advanced form of the small grocery
stores and caters to the household needs of the consumer.
 Merchandise:

 Bakery products
 Cereals
 Breads
 Vegetables
 Fruits
 Soft drinks
 Frozen Food
 Hypermarket
 A hypermarket (sometimes called a supercenter or
superstore) is a big-box store 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.
 These are very large in size. They provide large parking than
supermarket & departmental stores.
 Warehouse Stores
 A retail format which sells limited stock in bulk at a
discounted rate is called as warehouse store.
 Warehouse stores do not bother much about the interiors of
the store and the products are not properly displayed.
 Convenient Stores
 This is located close to residential areas so as to make easy
access to the customers.
 It offers a limited range of product like grocery, daily
needed FMCG products, etc.
 It is small in size as compared to other retail outlets.
 They wouldn’t offer high-end products.
 Merchandise:

 Bread
 Stationery
 Toys
 Cigarettes
 Cereals
 Pulses
 Medicines
 Specialty Stores
 Specialty stores sell only selective items to the consumers
and primarily focus on high customer satisfaction.
 In other words, a shop that specializes in one breed of
products.
 Examples of specialist stores include camera stores,
pharmacies, stationers, and bookstores.
 Malls

 Many retail stores operating at one place form a mall.

 A mall would consist of several retail outlets each selling
their own merchandise but at a common platform.
 Chain Stores
 A chain store or retail chain is a retail outlet in which several
locations share a brand, central management, and
standardized business practices.
 A single retailer establishes a chain of the store.
 It offers certain special goods and services these all chain
have exclusive store design selling and promotional plan.
 A franchise retail establishment is one form of chain store.
 Franchisee

 This is the best way to enter into retail sectors.

 In this type of retail outlet the store is owned and operated
by individuals (Franchisee) on behalf of franchisor.
 Franchisee is licensed by a big supporting organization to
use their IPRs and in return charge royalty from the
franchisee.
 Factory Outlets
 Factory stores are owned and operated by a manufacturer
who sells the product directly to the customer at a low price
because there is no middleman involved.
E Tailers
 Now a days the customers have the option of shopping
while sitting at their homes.
 They can place their order through internet, pay with the
help of debit or credit cards and the products are delivered at
their homes only.
 On the basis of ownership:
 Independent retailer:
 An independent retailer is one who owns and operates only one
retail outlet.
 Such stores can be seen under proprietorship.
 The individual retailer can easily enter into a retail market. The
owner is assisted by local staff or his family members.
 These kinds of shops are passed from one generation to other
generation.
  The independent retailer maintains a good relationship with the
customers. It can be a grocery store, stationery shop, or a cloth
store, etc.

 A chain retailer:
 When two or more retail outlets are under a common
ownership it is called a retail chain.
 Chain Stores are groups of retail stores engaged in the same
field and owned by one firm and spread nationwide.
 Franchise:
 A franchise is a contractual agreement between franchisor and
a franchisee in which the franchisor allows the franchisee to
conduct a business under an established name as per the
business format.
 In return the franchisee has to pay a fee to the franchiser.
 For example: Pizza hut, McDonalds, etc.
 Consumer Co-operatives:
 A consumer co-operative is a retail organisation owned by its
member customers.
 The objective is to provide commodities at a reasonable price.
 On the Basis of Merchandise offered
 Departmental Stores:
 A departmental store is a large scale retail institution that offers
several products such as clothing, grocery etc.
 Departmental stores are the largest form of organized retailing
today, located mainly in metro cities, in proximity to urban
outskirts. Examples include Shoppers Stop, Pantaloon.
 Convenience stores:
 These are relatively small stores located near the residential
area. They offer limited line of convenient products.
 Such stores enable the customers to make quick purchase and
offer them few services.
 Super Market:
 They are the large self-service outlets, catering to varied
shopper needs. These are located in or near residential high
streets. A supermarket, also called a grocery store, is a self-
service store offering a wide variety of food and household
merchandise, organized into department.
  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 usually offer products at low prices by reducing
their economic margins.
 Hyper Market:
 A hypermarket is a superstore which combines a supermarket
and a department store.
 Hyper markets are huge retail stores that offer various products
such as clothes, jeweler, stationery, electronic goods at cheaper
price. Example: Big Bazaar, Star Bazaar. They focus on high
volume.
 Specialty stores:
 A specialty store is a store that offers specific and specialized
types of items.
 They offer a narrow product line that concentrates on
specialized products such as jeweler, fabrics, furniture etc.
Customer service and satisfaction are given due importance.
 Non-Store Retailing:
 A direct relationship of the retailer with his customer is on
the basis of non-store Retailing.
 In India around twenty percent of retail sale is from non-
store.
 The proportion of non store is growing steadily.
 Direct Selling:
 Direct selling is a retail channel for the distribution of goods
and services. There is no fixed retail location.
 In direct selling there is a direct contact of the retailer with
his ultimate customers.
 The retailers visit home place or work place of the
customers to sell the products.
 It is also known as network marketing where the products
and services are sold face to face.
 Mail order:
 It is a retail format in which offerings are communicated to
the customers through a catalogue, letters or brouchers.
Such retailing is suitable for specialty products.
 The buyer places an order for the desired products with the
merchant through a telephone call or website.
 Internet and online payment options, has made shop from
home easier.
 Tele Marketing:
 It is a form of retailing in which the products are advertised
on television.
 Details about the product in regard to its features, price,
warranty, direction to use etc. are mentioned and explained.
 Phone numbers are provided due to which customers can
make a call and place an order for the product.
 Automatic Vending:
 This is a form of non store retailing in which the products
are stored in a machine and dispensed to the customers
when they deposit cash.
 Vending machines are placed at convenient and busy
locations like air ports, shopping malls, working place etc.
 This machine primarily contains products like chocolates,
snacks and drinks etc.
 Electronic retailing:
 It is also called as e-tailing or internet retailing. It is a retail
format in which products are offered to the customers
through internet.
 The customers can evaluate and purchase the products from
their homes or office place.
 This kind of retail is gaining importance in recent years.