Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. He needs empathy to understand customers’ requirements but he also has to be indifferent enough not to let customers’ anguish about the products in his store bother him. The retailer’s focus has to be on getting the operation of his store right, which is itself a stupendous task. From easy-going shoppers who make small talk, to customers on a mission who just want to get in and out of the store, retailers deal with various types of people on a daily basis. Many retailers categorize their inventory using the ABC classification method, which is based on the Pareto principle, which states that 80% of your results come from 20% of actions. What you’ll learn to do: list the classification characteristics of various types of retailers by ownership. These retail store formats vary from each other on the basis of their product assortment (product depth and width), price and location. It may also happen that a customer decides to buy from a particular retail format, and then buys from among the brands that the retail format stocks. A supermarket is an advanced form of the small grocery stores and caters to the household needs of the consumer. have been very famous. Retailers owned by a single person or partnership and not operated as part of a larger retail institution are independent retailers. The family would watch a movie and buy its supplies on a common trip. The store however stocks large amount of variety of these products. The Indian retail market is estimated to be US$ 600 billion and one of the top five retail markets in the world by economic value. For instance, in India, Ebony Shopper’s Stop are such stores. Parking surrounds the outside perimeter. When applied to the context of inventory, it means that 80% of revenues are generated by 20% of your products. General Merchandise Retailer 2. But they often combine the purchasing of supplies with an entertainment trip. But there are stores called discount stores which sell products at low prices daily. 600 353,795,548 4.7% 589,659 400,000-800,000 40-100 2+ 50-70% 40-80 stores Dedicated channels or programme time is used to sell merchandise as demonstrated in television through various companies. It is a very large subject and as important and wide as store retailing. This also assures that customers, who may not be able to afford brands during initial period, can use these stores; thus brand associations created for the period when they can afford these brands at regular outlets. If they happen to be big or a national chain, they command better buying discounts; thus much better rates are offered to customers as compared to specialty stores. The technique used 35 observable Internet retail site attributes and features of online stores as the raw data to classify the online stores into meaningful groups. Some retail stores may charge normal or list prices, while some may charge lower than list prices on a regular basis. Traditional classifications based upon central place theory are reviewed for both of these types, and found wanting in the light of recent changes in retail development practice and consumer behaviour. The choice of the brands offered conveys the depth of the category, image of the store and reflects the intended target market. They are generally largest chains also. Usually such stores are also accompanied by food joints and entertainment plazas that provide an ideal day out. Products listed here are generally available at cheaper price than regular rates primarily due to no or very less cost of distribution, advertisement, retailer margin and inven­tory. It is where consumers go to obtain goods and services. But location still remains important. Retail stores can be classified on the basis of their pricing style. Famous in the United States and worldwide, six billion USD industry has its success factor based on penetration of Cable broadcasting and TV sets in a country. A retailer’s prime affinity and loyalty is towards the customers of his store, and not to the companies whose goods he sells. Here product details, price offers, promotions are listed in a principal website and also linked to various other websites and customers log in to buy products in various quantities and either pay through credit/debit card by “payment gateways” or else pay on delivery. Retail stores that offer products on the list price do not give discounts on a regular price, though they engage in promotions. Around the world, most retailers are independent, operating one or a few stores in their community. Multi-level marketing has made brands like Tupperware, Oriflamme, Avon a worldwide success and pure direct marketing success story of Eureka Forbes will never be forgotten in India. Therefore such stores should stock only those items whose purchases the family cannot postpone till the weekend. It can be childcare center, financial planning center, dry cleaning center, weight loss center, internet parlour, telephone booths, entertainment parks, hotels, etc. Automatic object classification can be of great help to a food and groceries retailer in order to reduce human effort in the inventory management process of its warehouse and retail outlets. A retailer is required to have both marketing and operational skills. The retail potential database consists of average household and total market potential estimates by each of sixty-eight retail store types. Some may eventually move to a commercial store location, while many remain in the business owner's spare room, especially if the business primarily operates online or works with distributors. 5-25 miles Regional Mall General merchandise or fashion-oriented offerings. These retail store formats vary from each other on the basis of their product assortment (product depth and width), price and location. When chain stores are located at different places within a distinct geographical unit, they are known as sectional stores. This concept goes against the very basic concept of store retailing as it drives away footfalls. Here they do not need to advertise or spend on costly store atmospherics and service standards. According to the NAICS 2017 Man… 1. Image Courtesy : upload.wikimedia.org/wikipedia/commons/c/cd/Bon_March%C3%A9,_Paris_-_interior_view.JPG. The technique used 35 observable Internet retail site attributes and features of online stores as the raw data to classify the online stores into meaningful groups. Internationally, Best Buy, Toy “R” US, Pet Valu, Baby, Home Depot, Gart Sports, Circuit City and in India Electronic Bazaar, Food World, Welspun, Mega Mart etc., are leading examples. The retailer has to get the right assortment of products in the store in an efficient way, arrange the products in a way that stimulates purchase and minimizes inconvenience for customers, and manage a group of friendly and effective salespersons. There are different types of such retailers. They face intense competition from specialty stores in form of variety, good service, better store design etc., that may force them step up service and other factors. Before publishing your articles on this site, please read the following pages: 1. This format can afford specialization of retail personnel which will be necessary in handling customers’ enquiries as categories develop. This paper presents a classification of online retail stores based upon an August 1996 convenience sample of 137 Internet retail … Report a Violation, Retail Marketing: Useful notes on Retail Marketing, Retail: Notes on the Classification of Retail Formats, How to Enhance Customer Experience in a Retail Store? They also sell “value” for money concept to wide variety of customers. (6 Steps). They are generally situated away from regular market or shopping zones so that customers are not influenced while they come for shopping to regular outlets of these brands. This article throws light upon the two broad categories of retail store classification. The Bottom Line If you want to start a retail business, there are a wide variety of options available. The stores are generally up to 5,000 sq ft and are found in areas where purchasing power is not very high. The categories promoted are generally cheap jewellery, electronic goods, sports equipments, non-traditional white goods, etc. ICC Digital Codes is the largest provider of model codes, custom codes and standards used worldwide to construct safe, sustainable, affordable and resilient structures. To name a few, Reebok, Lee, Arrow, Levis, Nike have used this extensively. This store format is gaining wide acceptance in India as the store acts as a one- stop-shop for the complete family. Product categories in which this format is popular are footwear, clothing, furniture and furnishing. TOS 7. Copyright 10. These stores can have arrangement to deliver the items on a regular basis to the households. ; Speciality store - a store which concentrates on narrow product areas, eg clothing, electrical goods, entertainment. They can be in categories like apparel, fashion accessories, nutrition, home segment, jewellery, optical, footwear etc. But this arrangement will leave a lot of customers dissatisfied as they may find the range too limited. Home-based Retail Stores . They have a very narrow product line. Today service retailing is closely linked with merchandise retailing and two are interlinked as a good merchandise retailing fails without good service. Millions of retail businesses start in their owners' homes. 2. Plagiarism Prevention 4. Customers would like to travel some distance for their weekend trips. That is why it is not very successful in India. The store usually stocks related items, for instance, lifestyle goods for the whole family that include clothes, books, home decor, jewellery, cosmetics, accessories, stationary, toys, etc. Prohibited Content 3. Internationally a success but has started in India at all. Non-store-based classification: They emphasize establishing direct contact with the end customer. The store has one product category or a very narrow, related range of products. The important types of retail stores are: Speciality store; Department store; Super market; Convenience store; Discount store; Off-price retailer; Superstore; Hypermarket; and; Catalogue showroom. Read this article to learn about classification of retail store formats on the basis of product, price and location! All the stores mentioned above charge list prices from their customers. But most retail stores are not owned by the companies whose items are sold in them. TOS 7. The payments are advance or gen­erally on delivery. He has to remember that he sells the manufacturer’s products and it is the manufacturer’s duty to make the right products for the customers. They are retailers of wide variety of merchandise mix (private labels, brands, fashion brands etc.,) at low prices bought from manufacturers through unique opportunistic buying practice. Classification of Retailers on the basis or Retail Location Retailers have also been also been classified according to their store location. 10 Types of Retail Stores 1) Speciality Store. Non-Store Formats have been discussed below: Famously called e-tailing, it is a format where companies sell merchandise through exclusive product websites or Multi-Brand websites. These discount stores get price concessions from manufacturers because of the high offload from these stores. These comprise nonpersonal selling as well as personal or direct selling. The business institutions or persons who sell goods to final consumers are called retailers. The categories are: 1. E-tailing can be for specialty products, value oriented products, premium products, private label or multi-branded products of various price points. One specific type of specialty store is the grocery store or the chemist, whose critical factor for success is the proximity to the customer. Retailing is becoming international in nature and is slowly emerging as an important service. There are many types of retail formats like discount stores, supermarkets, convenience stores, department stores, etc. Image Guidelines 5. Like e-tailing the costs are generally lesser due to no or very less cost of distribution, advertisement, retailer margin and inventory. Copyright 10. The other option is to have limited product categories and a wide range in each one of them. For example, we can buy food from supermarkets, convenience stores, restaurants, bars, street vendors, butchers, bakeries, produce stands, online and so on. Management, Retail Management, Retail Store Classification. These store formats will ultimately be targeted to specific segments. Retailing is the set of activities related to the sale of products and services to the ultimate customer. They are fastest growing segment in market. Supermarket Self-service Offer Groceries Meat Produce Limited non-food items 11. These retail formats are characterized by very large retail spaces that are leased out to various brands. Called category killers, these stores eliminate competition in the specified category. They may also take multi-level marketing routes wherein products are sold by form to master distribution than they sell the products to distribution and chain goes on. Previously, retailers operated from physical stores by selling variety of merchandise or services. Classification of retailers as per ownership: General Merchandise Retailer: The major General Merchandise retailers are: (a) Discount Stores: Retail Store Classification: Category # 1. Characteristics of FoodRetailers 10. One such store targeted towards the up market will stock premium brands in all categories, whereas the down-market store will stock popular or less premium brands. The importance of a store’s proximity to customers has not waned even with improvement in transportation and more families owning vehicles because, in most households, both husbands and wives are working longer hours. Module 2: Retail Environment Analysis. Also the friction-less store experience is being considered as the future of shopping. The variety available in this store format is unparalleled and is the competitive criteria among these stores. Categories like home care, cutlery, baby product, beauty prod­ucts, services, educational products are sold through this channel. 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