Professional Documents
Culture Documents
Competition emerged for local stores with the entry of Kress and
Sears departmental stores
Evolution of Retail competition
Trading-up Phase
Traditional
Retailer
The Wheel of Retailing
Mature Retailer
• Top Heaviness
• Conservatism
• Declining ROI
Innovation Retailer
• Low Status
• Low Price
• Minimal Service
• Poor facilities
• Limited product offerings
The Wheel of Retailing
Traditional Retailer
• Elaborate facilities
• Expected, essential and
• Exotic services
• Higher rent locations
• Fashion orientations
• Higher Prices
• Extended product offerings
The Wheel of Retailing
• Stages through which a retailer pass
• First stage: Retailers attract customers by offering low price and
low services
• In next stage, retailers expand by adding more product range,
services and add more stores
• This create opportunity for the low price, new retailers to enter the
market, adding vulnerability to the existence of earlier stores
• The Retail Institutions like products also goes through the cycle
Globalization
• Most large retailers have now expanded their presence to other
countries
• Brands like WalMart, Tesco, Carrefour, etc. are moving to new
unexplored markets
• Brands like McDonald, Pizza Hut, Domino, KFC, etc. are now
havig presence in even the smaller Tier II cities also
The Emerging Trends in Retailing
2. General Merchandize
• Discount
• Speciality
• Category
• Home Improvement centres
• Department
• Drug stores
• Off-price stores
• Value retailers
Retail Formats
2. General Merchandize
• Discount Stores: They offer a broad variety of merchandize,
limited services and low prices. They offer private as well as
national brands, but these are less fashion oriented
• Speciality Stores: It concentrate on a limited number of
complementary merchandize categories and provides a high
level of service in around 8,000 sq.ft of area. Usually Apparel,
jewellery, etc.
• Category Specialist: It offers a narrow variety but deep
assortment of merchandize. Use self service approach and sales
people provides assistance on functional aspects. Home
improvement merchandise, consumer durable, books, etc.
• Department Stores: Carry a broad variety and deep
assortment and are organized into separate departments for
displaying merchandize
Retail Formats
2. General Merchandize
• Drugstores: They concentrate on health and personal
grooming merchandize. They provide specialized services such
as order via phone or drive through windows
• Off-Price Retailers: Offers an inconsistent assortment of
brand name, fashion oriented soft goods at low prices. Sell
brand name as well as designers labels at low prices, due to
unique buying practices
• Close out Retailers: Sell broad but inconsistent assortment of
merchandize, apparel and home products
• Outlet stores: Owned by manufacturers or speciality stores
chains and also referred as factory outlets
• Value Retailers: Mostly found in lower income urban or rural
areas and are smaller than traditional discount stores. (less than
9000 sq.ft area) Specialize in giftware, party and craft items
Retail Formats