TYPES OF RETAILERSTYPES OF RETAILERS

BYBY

SAURABH SINGHSAURABH SINGH

NIFT CHENNAINIFT CHENNAI

CLASSIFYING RETAIL OUTLETS

1.On the Basis of Ownership

1.On the basis of Merchandise

IndependentRetailers-one store

ownership

IndependentRetailers-one store

ownership

Chain Stores-many stores but only one owner

Chain Stores-many stores but only one owner

Franchises-many owners of many stores

Franchises-many owners of many stores

CLASSIFICATION BY OWNERSHIP

Cooperatives – member consumers are the owners

Leased

Independent RetailerIndependent Retailer

Owns and operate only one retail outletOwns and operate only one retail outlet Managed by owner / proprietor and a few Managed by owner / proprietor and a few

other family members ( Generation shops)other family members ( Generation shops) Local baniya / Kirana store / paanwalaLocal baniya / Kirana store / paanwala One to one rapport with customerOne to one rapport with customer Limited bargaining power with supplierLimited bargaining power with supplier

Chain RetailerChain Retailer

Two or more outlets under common Two or more outlets under common ownershipownership

Commonality in terms of BUYING , Commonality in terms of BUYING , MANAGEMENT, MERCHANDISE , MANAGEMENT, MERCHANDISE , AMBIENCE ,ADVERTISING , AMBIENCE ,ADVERTISING , PROMOTIONS PROMOTIONS

Very high bargaining power with supplierVery high bargaining power with supplier City and regional preferences ignored City and regional preferences ignored

FranchisingFranchising

Contractual agreement between franchiser and franchisee which allows the Contractual agreement between franchiser and franchisee which allows the

franchisee to conduct business under an established name as per a particular franchisee to conduct business under an established name as per a particular

business format in return for a fee or a compensation .business format in return for a fee or a compensation .

Such type of ownership enriches the Franchiser as the Franchisee are Such type of ownership enriches the Franchiser as the Franchisee are

entrepreneur who bring their business skills to grow the business of Franchisers.entrepreneur who bring their business skills to grow the business of Franchisers.

Ineffective / Bad Franchisee may harm the reputation of the FranchiserIneffective / Bad Franchisee may harm the reputation of the Franchiser

Such a system does not allow Territorial exclusivity . Such a system does not allow Territorial exclusivity .

Product and Trade Name Franchising

Product and Trade Name Franchising

BusinessFormat

Franchising

BusinessFormat

Franchising

Dealer agrees to sell certain products provided by a

manufacturer, but can use any sales tactics he chooses.

Archie's , Auto dealers

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 franchiser’s product in the exact way the

franchiser prescribes.Ex – McDonalds, Planet Fashion

Stores

Dealer must sell the franchiser’s product in the exact way the

franchiser prescribes.Ex – McDonalds, Planet Fashion

Stores

BASIC FORMS OF FRANCHISING

CooperativesCooperatives

Consumers invest in the enterpriseConsumers invest in the enterprise

Profits are distributed among the members as dividendsProfits are distributed among the members as dividends

Stores managed by elected officialsStores managed by elected officials

Apna bazar ,Super bazar ,Kendriya bhandar ,Sahakari Apna bazar ,Super bazar ,Kendriya bhandar ,Sahakari

bhandarbhandar

Leased DepartmentLeased Department Also termed as Shop-in ShopsAlso termed as Shop-in Shops A section of a space is leased to an outside party A section of a space is leased to an outside party Retailer expands its product offering to the Retailer expands its product offering to the

customerscustomers Perfumes / cosmetic counters in department Perfumes / cosmetic counters in department

stores stores The owner of leased department is responsible for The owner of leased department is responsible for

all aspects of its business and normally pays a all aspects of its business and normally pays a percentage of sales as rent . percentage of sales as rent .

The store sets operating restrictions for the The store sets operating restrictions for the leased department to ensure overall consistency leased department to ensure overall consistency and coordination .and coordination .

Convenience StoresConvenience Stores

SupermarketsSupermarkets

Departmental StoresDepartmental Stores

HypermarketsHypermarkets

Specialty StoresSpecialty Stores

Category KillersCategory Killers

Catalogue RetailingCatalogue Retailing

CLASSIFICATION BY MERCHANDISE

Warehouse Clubs

Kirana Store

Kirana StoresKirana Stores Neighborhood / residential areas / Neighborhood / residential areas /

Independent retailersIndependent retailers Food oriented Food oriented Eased / personalized/ emergency Eased / personalized/ emergency

purchasepurchase 2-3 times a week 2-3 times a week Convenience productsConvenience products Open for long hoursOpen for long hours Home delivery and monthly creditHome delivery and monthly credit

Convenience storesConvenience stores

Food oriented store open for long hoursFood oriented store open for long hours Moderate number of items (more than kirana )Moderate number of items (more than kirana ) The store size is relatively larger than kirana and provides better The store size is relatively larger than kirana and provides better

customer service in terms of ambience ,packaging , presentation and customer service in terms of ambience ,packaging , presentation and quality.quality.

Prices are not as competitive as other formats like supermarket but Prices are not as competitive as other formats like supermarket but certainly competitive than the Kirana stores.certainly competitive than the Kirana stores.

The ease of shopping at convenience store in terms of time and The ease of shopping at convenience store in terms of time and impersonal nature of supermarket makes these stores more appealing impersonal nature of supermarket makes these stores more appealing

According to FMI : A small local store selling mostly grocery , open 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.until late at night or even 24 hours a day and is abbreviated as c store.

HP Speed mart, In and OutHP Speed mart, In and Out The store size is 3000-8000 sq ft The store size is 3000-8000 sq ft

SupermarketsSupermarkets Stores offering food and groceries and limited Stores offering food and groceries and limited

range of general merchandise i.e. health and range of general merchandise i.e. health and beauty aids , gift items .beauty aids , gift items .

Large stores ,low cost , low margin , high volume Large stores ,low cost , low margin , high volume 85% food and grocery items85% food and grocery items Impulse buyingImpulse buying 8000-20000 sq ft8000-20000 sq ft Nigiris , Foodworld, Subhiksa , Food Bazar , Nigiris , Foodworld, Subhiksa , Food Bazar ,

Spencers, Spinach ,more , Reliance freshSpencers, Spinach ,more , Reliance fresh

SuperstoresSuperstores

The expanded supermarket with The expanded supermarket with merged drug stores / general merged drug stores / general merchandise but still dominated by merchandise but still dominated by food and grocery itemfood and grocery item

30,000-50,000 sq.ft30,000-50,000 sq.ft 20-25% general merchandise20-25% general merchandise

Combination StoreCombination Store

Superstores +full line pharmacy Superstores +full line pharmacy (general merchandise /health and (general merchandise /health and beauty care/pharmacy accounts for beauty care/pharmacy accounts for 40% of sales)40% of sales)

Upto 1lakh sq.ftUpto 1lakh sq.ft

Departmental Store Departmental Store Large stores selling several product lines with each Large stores selling several product lines with each

operating as a department under one roof. operating as a department under one roof. Product mix is largely non food like apparel , Product mix is largely non food like apparel ,

accessories ,books , music , footwear .accessories ,books , music , footwear . 20000- 40000 sq. ft. 20000- 40000 sq. ft. Target customers are not price consciousTarget customers are not price conscious Ambience / VM plays important role.Ambience / VM plays important role. National brands as well private labelsNational brands as well private labels Merchandise return policy and loyalty programsMerchandise return policy and loyalty programs Anchors in a shopping mallAnchors in a shopping mall They help in attracting high trafficThey help in attracting high traffic 30% conversion rates30% conversion rates Atleast 50 employeesAtleast 50 employees 50000- 100000 SKU’s50000- 100000 SKU’s Shopper’s Stop , Pantaloon , Lifestyle , Westside , GlobusShopper’s Stop , Pantaloon , Lifestyle , Westside , Globus

HypermarketsHypermarkets Derived from the French word Hypermarche Derived from the French word Hypermarche

which is a combination of a supermarket and a which is a combination of a supermarket and a department store .department store .

Also termed as supercentres.Also termed as supercentres. Carrefour started first hypermarket in 1963Carrefour started first hypermarket in 1963 A store with 80000-2,20000 sqft. with at least A store with 80000-2,20000 sqft. with at least

35% of selling space devoted to non grocery 35% of selling space devoted to non grocery product like clothes , jewellery , hardware , sports product like clothes , jewellery , hardware , sports equipment , books , CD’S /DVD’S , Video’s , TV , equipment , books , CD’S /DVD’S , Video’s , TV , electric equipments .electric equipments .

One stop shoppingOne stop shopping Big Bazaar , Star India Bazaar , Hypercity , vishal Big Bazaar , Star India Bazaar , Hypercity , vishal

megamart, Spencers megamart, Spencers

Specialty StoreSpecialty Store A retail store specializing in a particular type of A retail store specializing in a particular type of

merchandise or single product line with deep merchandise or single product line with deep assortments in that product line assortments in that product line

Such business model is characterized by high Such business model is characterized by high level of customer service or product information level of customer service or product information

Concentrate on apparel , jewellery ,drugs, fabrics Concentrate on apparel , jewellery ,drugs, fabrics , sporting goods , Car / Scooters , furniture etc., sporting goods , Car / Scooters , furniture etc.

8000 sq.ft.8000 sq.ft. Reliance Trends ,Reliance footprints ,Reliance Reliance Trends ,Reliance footprints ,Reliance

digital,Reliance wellness , Proline fitness centre , digital,Reliance wellness , Proline fitness centre , Croma , Kings electronics , Health and Glow , Croma , Kings electronics , Health and Glow , Crossword,Car dealersCrossword,Car dealers

Category KillersCategory Killers

A specialty retailer who offers a very large A specialty retailer who offers a very large selection in the chosen product category selection in the chosen product category and economical pricesand economical prices

Focus on one product category, they stock Focus on one product category, they stock deep , dominate the product categorydeep , dominate the product category

20,000-1,20,000 sq.ft.20,000-1,20,000 sq.ft. Nalli,s sarees, The loft, Toys KempNalli,s sarees, The loft, Toys Kemp

Catalogue RetailersCatalogue Retailers

A retail outlet selling durable A retail outlet selling durable products and other high mark-up products and other high mark-up merchandise from a merchandise from a cataloguecatalogue. .

BUYER'S choose items from the BUYER'S choose items from the cataloguecatalogue and complete an order and complete an order form which is then processed in – form which is then processed in – store .store .

Warehouse ClubsWarehouse Clubs

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

Metro cash and carry , ShopriteMetro cash and carry , Shoprite

Others---Others---

Factory outlet /Discount storesFactory outlet /Discount stores Single price storesSingle price stores Flea MarketFlea Market

Retail Formats in IndiaRetail Formats in India

FormatFormat ExamplesExamplesConvenience storeConvenience store Stores in petrol pumps like HP Speed mart, In and Out.Stores in petrol pumps like HP Speed mart, In and Out.

SupermarketsSupermarkets Nigiris , Foodworld, Subhiksa , Food Bazar , Spencers, Nigiris , Foodworld, Subhiksa , Food Bazar , Spencers, Spinach ,more , Reliance freshSpinach ,more , Reliance fresh

Departmental Departmental StoresStores

Shopper’s Stop , Pantaloon , Lifestyle , Westside , Globus .Shopper’s Stop , Pantaloon , Lifestyle , Westside , Globus .

HypermarketHypermarket Big Bazaar , Star India Bazaar , Hypercity , vishal megamart, Big Bazaar , Star India Bazaar , Hypercity , vishal megamart, Spencers Spencers

Specialty StoresSpecialty Stores Reliance Trends ,Reliance footprints ,Reliance Reliance Trends ,Reliance footprints ,Reliance digital,Reliance wellness , Proline fitness centre , Croma , digital,Reliance wellness , Proline fitness centre , Croma , Kings electronics , Health and Glow , CrosswordKings electronics , Health and Glow , Crossword

Category KillersCategory Killers Nalli,s sarees, The loft, Toys KempNalli,s sarees, The loft, Toys Kemp

Catalogue RetailingCatalogue Retailing BurlingtonsBurlingtons

Warehouse ClubsWarehouse Clubs Metro cash and carry , ShopriteMetro cash and carry , Shoprite

Discount storesDiscount stores Max ,Brand factory ,Megamart , Promart ,, Max ,Brand factory ,Megamart , Promart ,, The loot , TruMartThe loot , TruMart

Non store-based Retail FormatsNon store-based Retail Formats

Direct SellingDirect SellingStreet PeddlingStreet PeddlingInteractive TVInteractive TVMail-OrderMail-OrderInternetInternetAutomated Merchandising SystemsAutomated Merchandising Systems

Service Service

BanksBanks HotelsHotels HospitalsHospitals EducationEducation AirlinesAirlines Car RentalsCar Rentals Housekeeping Housekeeping