TYPES OF RETAILERS SUSHIL RATURI ASSOCIATE PROFESSOR DEPARTMENT OF FASHION MANAGEMENT STUDIES MUMBAI

CLASSIFYING RETAIL OUTLETS

1.On the Basis of Ownership

1.On the basis of Merchandise

CLASSIFICATION BY OWNERSHIP
Independent Retailers-one store ownership

Chain Stores-many stores but only one owner

Franchises-many owners of many stores

Cooperatives member consumers are the owners

Leased

Independent Retailer
Owns and operate only one retail outlet Managed by owner / proprietor and a few other family members ( Generation shops) Local baniya / Kirana store / paanwala One to one rapport with customer Limited bargaining power with supplier

 

  

Chain Retailer


 

Two or more outlets under common ownership Commonality in terms of BUYING , MANAGEMENT, MERCHANDISE , AMBIENCE ,ADVERTISING , PROMOTIONS Very high bargaining power with supplier City and regional preferences ignored

Franchising


Contractual agreement between franchiser and franchisee which allows the franchisee to conduct business under an established name as per a particular business format in return for a fee or a compensation .

Such type of ownership enriches the Franchiser as the Franchisee are entrepreneur who bring their business skills to grow the business of Franchisers.

 

Ineffective / Bad Franchisee may harm the reputation of the Franchiser Such a system does not allow Territorial exclusivity .

BASIC FORMS OF FRANCHISING

Dealer agrees to sell certain products provided by a manufacturer, but can use any sales tactics he chooses. Archie's , Auto dealers Dealer must sell the franchisers product in the exact way the franchiser prescribes. Ex McDonalds, Planet Fashion Stores

Product and Trade Name Franchising

Business Format Franchising

Cooperatives
   

Consumers invest in the enterprise Profits are distributed among the members as dividends Stores managed by elected officials Apna bazar ,Super bazar ,Kendriya bhandar ,Sahakari bhandar

Leased Department
  

Also termed as Shop-in Shops ShopA section of a space is leased to an outside party Retailer expands its product offering to the customers Perfumes / cosmetic counters in department stores The owner of leased department is responsible for all aspects of its business and normally pays a percentage of sales as rent . The store sets operating restrictions for the leased department to ensure overall consistency and coordination .

CLASSIFICATION BY MERCHANDISE
Kirana Store Convenience Stores Supermarkets Departmental Stores Hypermarkets Specialty Stores Category Killers Catalogue Retailing Warehouse Clubs

Kirana Stores
  

   

Neighborhood / residential areas / Independent retailers Food oriented Eased / personalized/ emergency purchase 2-3 times a week Convenience products Open for long hours Home delivery and monthly credit

Convenience stores
  

 

Food oriented store open for long hours Moderate number of items (more than kirana ) The store size is relatively larger than kirana and provides better customer service in terms of ambience ,packaging , presentation and quality. quality. Prices are not as competitive as other formats like supermarket but certainly competitive than the Kirana stores. stores. The ease of shopping at convenience store in terms of time and impersonal nature of supermarket makes these stores more appealing According to FMI : A small local store selling mostly grocery , open until late at night or even 24 hours a day and is abbreviated as c store. store. HP Speed mart, In and Out The store size is 3000-8000 sq ft 3000-

Supermarkets


    

Stores offering food and groceries and limited range of general merchandise i.e. health and beauty aids , gift items . Large stores ,low cost , low margin , high volume 85% food and grocery items Impulse buying 80008000-20000 sq ft Nigiris , Foodworld, Subhiksa , Food Bazar , Spencers, Spinach ,more , Reliance fresh

Superstores


 

The expanded supermarket with merged drug stores / general merchandise but still dominated by food and grocery item 30,00030,000-50,000 sq.ft 2020-25% general merchandise

Combination Store


Superstores +full line pharmacy (general merchandise /health and beauty care/pharmacy accounts for 40% of sales) Upto 1lakh sq.ft

Departmental Store
 

          

Large stores selling several product lines with each operating as a department under one roof. Product mix is largely non food like apparel , accessories ,books , music , footwear . 2000020000- 40000 sq. ft. Target customers are not price conscious Ambience / VM plays important role. National brands as well private labels Merchandise return policy and loyalty programs Anchors in a shopping mall They help in attracting high traffic 30% conversion rates Atleast 50 employees 5000050000- 100000 SKUs Shoppers Stop , Pantaloon , Lifestyle , Westside , Globus

Hypermarkets


  

 

Derived from the French word Hypermarche which is a combination of a supermarket and a department store . Also termed as supercentres. Carrefour started first hypermarket in 1963 A store with 80000-2,20000 sqft. with at least 8000035% of selling space devoted to non grocery product like clothes , jewellery , hardware , sports equipment , books , CDS /DVDS , Videos , TV , electric equipments . One stop shopping Big Bazaar , Star India Bazaar , Hypercity , vishal megamart, Spencers

Specialty Store


A retail store specializing in a particular type of merchandise or single product line with deep assortments in that product line Such business model is characterized by high level of customer service or product information Concentrate on apparel , jewellery ,drugs, fabrics , sporting goods , Car / Scooters , furniture etc. 8000 sq.ft. Reliance Trends ,Reliance footprints ,Reliance digital,Reliance wellness , Proline fitness centre , Croma , Kings electronics , Health and Glow , Crossword,Car dealers

 

Category Killers


 

A specialty retailer who offers a very large selection in the chosen product category and economical prices Focus on one product category, they stock deep , dominate the product category 20,000-1,20,000 sq.ft. 20,000Nalli,s sarees, The loft, Toys Kemp

Catalogue Retailers


A retail outlet selling durable products and other high mark-up markmerchandise from a catalogue. catalogue. BUYER'S choose items from the catalogue and complete an order form which is then processed in store .

Warehouse Clubs


A limited-service limitedmerchant wholesaler that sells appliances, household items, and groceries on a cash-andcash-and-carry basis to members, usually small businesses and groups. groups.

Metro cash and carry , Shoprite

Others--Others---

  

Factory outlet /Discount stores Single price stores Flea Market

Retail Formats in India

Format
Convenience store Supermarkets Departmental Stores Hypermarket Specialty Stores

Examples
Stores in petrol pumps like HP Speed mart, In and Out. Nigiris , Foodworld, Subhiksa , Food Bazar , Spencers, Spinach ,more , Reliance fresh Shoppers Stop , Pantaloon , Lifestyle , Westside , Globus . Big Bazaar , Star India Bazaar , Hypercity , vishal megamart, Spencers Reliance Trends ,Reliance footprints ,Reliance digital,Reliance wellness , Proline fitness centre , Croma , Kings electronics , Health and Glow , Crossword Nalli,s sarees, The loft, Toys Kemp Burlingtons Metro cash and carry , Shoprite Max ,Brand factory ,Megamart , Promart ,, The loot , TruMart

Category Killers Catalogue Retailing Warehouse Clubs Discount stores

Non store-based Retail Formats storeDirect Selling Street Peddling Interactive TV Mail-Order MailInternet Automated Merchandising Systems

Service
      

Banks Hotels Hospitals Education Airlines Car Rentals Housekeeping