E-tailing can be for specialty products, value oriented products, premium products, private label or multi-branded products of various price points. Retail stores can be classified on the basis of their pricing style. These discount stores get price concessions from manufacturers because of the high offload from these stores. On the basis of location, chain stores are classified as local, sectional and national chains. They can be in categories like apparel, fashion accessories, nutrition, home segment, jewellery, optical, footwear etc. This format can afford specialization of retail personnel which will be necessary in handling customers’ enquiries as categories develop. Dedicated channels or programme time is used to sell merchandise as demonstrated in television through various companies. For the systematic study they can be divided in different classes, such as on the basis of ownership, on the basis of product line, on the basis of sales volume and on the basis of operation method. Product categories in which this format is popular are footwear, clothing, furniture and furnishing. For example, we can buy food from supermarkets, convenience stores, restaurants, bars, street vendors, butchers, bakeries, produce stands, online and so on. Due to low capital investment required, it is easy to get into by individuals. 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. Speciality store Such families need nearby stores when they have to purchase fresh grocery items during the weekdays. To help make sense of all this, the United States Census Bureau publishes the North American Industry Classification System (NAICS), which places businesses into Classificationsbased on their common characteristics and qualities. It may involve appointment based direct sales calls to sell or can just cold call oriented selling. Before publishing your articles on this site, please read the following pages: 1. As the name suggests, it is selling of product through salesman by reach­ing to target audience at houses or offices or wherever they can be available. 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. Image Courtesy : upload.wikimedia.org/wikipedia/commons/c/cd/Bon_March%C3%A9,_Paris_-_interior_view.JPG. Product factors: Retail store formats can be classified on the basis of the number of products sold by the retailer and the range of products in each category. 1. 10 Types of Retail Stores 1) Speciality Store. When it's time to shop for something, we have many options available to us. Around the world, most retailers are independent, operating one or a few stores in their community. Some specialty stores have a very limited number of product categories (typically one) and the complete range in that category is available under one roof. These huge retail formats have many single brand stores in many of the product categories. They sell products within strict price point to attract customers. When chain stores are located at different places within a distinct geographical unit, they are known as sectional stores. What is ABC inventory classification? Retail Store Classification: Category # 1. 2. The store has a number of products, but stocks a limited variety of all these goods. They are employed by stores and other retail businesses, wholesale businesses … But most retail stores are not owned by the companies whose items are sold in them. Retailers can be broadly classified by form of ownership; independent, part of chain, or franchise outlet. Home-based Retail Stores . Its major advantage to other form of non-store retailing is that customers can see actual products with demonstration and hear about its entire feature; thus better interest levels are generated resulting in good memo­rability and impulse buying. 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? It is where consumers go to obtain goods and services. One of the things that makes running a retail store so interesting and fun (most days) is the fact that you can encounter an array of characters at your shop. Non-store-based classification: They emphasize establishing direct contact with the end customer. The categories promoted are generally cheap jewellery, electronic goods, sports equipments, non-traditional white goods, etc. A retail store which generally sells food products and household items, properly placed and arranged in specific departments is called a supermarket. 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. Usually such stores are also accompanied by food joints and entertainment plazas that provide an ideal day out. A supermarket is an advanced form of the small grocery stores and caters to the household needs of the consumer. 5-25 miles Regional Mall General merchandise or fashion-oriented offerings. Today service retailing is closely linked with merchandise retailing and two are interlinked as a good merchandise retailing fails without good service. This article throws light upon the two broad categories of retail store classification. 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. It is a huge industry abroad and in India too. Image Guidelines 5. 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. 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. These retail store formats vary from each other on the basis of their product assortment (product depth and width), price and location. Plagiarism Prevention 4. Companies carry out market research to know customer attitude towards their products but the customers’ real intents are displayed only during the process of buying in retail stores. Content Guidelines 2. National Occupational Classification (NOC) 2011 - Retail sales supervisors supervise and co-ordinate the activities of workers in the following unit groups: Retail Salespersons and Sales Clerks (6421), Cashiers (6611), Grocery Clerks and Store Shelf Stockers (6622) and Other Elemental Sales Occupations (6623). 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. They can do this by bulk buying, accepting low margins, managing costs tightly and choosing locations where real estate prices are low. The store has to be located at places where the customers are most likely to visit during their weekends. 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 store however stocks large amount of variety of these products. “A small specialty shop may have all of its employees under one category called Store Oper… The store has one product category or a very narrow, related range of products. They are retailers of non-traditional categories like gift items, craft items, mini home decor items at ‘low to mid’ price points. 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. Fairly large employment generator, good for companies who cannot afford advertising investment in distribution channel and retail stores. The responsibilities of a store manager should be tailored to your specific business’ needs, but generally speaking, this retail job handles a lot of what you might have started out doing as the business owner — from maintaining day-to-day tasks and managing employees to understanding sales trends and, well, everything in between. Prohibited Content 3. They provide limited number of complementary merchandise categories and high level of service in typically up to 10,000 sq ft of store area. These stores can have arrangement to deliver the items on a regular basis to the households. However, the advantage of a speciality store is that you will find many things in that store related to that speciality which you … Consumer decision making involves the choice of brands, and also the choice of retail outlets from where the customer will buy his chosen brands. When applied to the context of inventory, it means that 80% of revenues are generated by 20% of your products. 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. Some of these products, like grocery items, vegetables and fruits, have to be bought frequently as they would be spoiled if they were stored for a long time. 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. Abroad QVC, HSN have been very successful and in India Asian Sky Shop has done fairly well. A company can develop insights into the behaviour of its customers as they shop in the retail store. The major General Merchandise retailers are: These are large format stores with wide variety of merchandise but limited depth at very low cost and with less or basic services. But they often combine the purchasing of supplies with an entertainment trip. But this will reduce the number of occasions that the customer will find a reason to walk into the store. India is one of the fastest growing retail markets in the world, with 1.2 billion people. 3) Pricing Philosophy. Disclaimer 9. Families make major purchases for the household during the weekend. Content Filtrations 6. Management, Retail Management, Retail Store Classification. This paper presents a classification of online retail stores based upon an August 1996 convenience sample of 137 Internet retail stores. Content Guidelines 2. In developing countries, these formats are slowly finding acceptance now. Search for: Introduction to Retailer Classification. Typically, enclosed with inward-facing stores connected by a common walkway. They also can be multi-channel catalogs as in the parent company might sell products through stores and catalogs and e-tailing also. 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. 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. Chain stores which operate in the city itself or near about the city are known as local chains. 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. The evolution of hypermarkets has resulted in wider and deeper product assortments for customers. Retailers owned by a single person or partnership and not operated as part of a larger retail institution are independent retailers. These retail formats are characterized by very large retail spaces that are leased out to various brands. If the number of product categories is large, chances are that the range in each one of them would be smaller because of space constraints or else it may become too unwieldy. They are less fashion oriented, but can be branded stores and fashion stores. One specific type of specialty store is the grocery store or the chemist, whose critical factor for success is the proximity to the customer. Purchasing for the household is done only during weekends. They are fastest growing segment in market. Copyright 10. TOS 7. A retailer’s prime affinity and loyalty is towards the customers of his store, and not to the companies whose goods he sells. 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. The other option is to have limited product categories and a wide range in each one of them. Study 17 Chapter 14: Classification of Retail Operations flashcards from Heather T. on StudyBlue. 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. Non-Store Retail Format. All the stores mentioned above charge list prices from their customers. For some consumers self-service is considered a benefit while others may view it as an inconvenience. Study 17 Chapter 14: Classification of Retail Operations flashcards from Heather T. on StudyBlue. Retailers can locate their stores in an isolated place and attract the customers to the store on their own strength–such as a small grocery store or paan shop in a colony, which attracts the customers staying close by. This service level allows consumers to perform most or all of the services associated with retail purchasing. Internationally a success but has started in India at all. They may carry merchandise that can be slightly defective as standard norms; famously known as “Factory Outlets”, or carry off season merchandise, not so fast moving designs and unpopular colours. For such excursions, location of stores is not important in terms of proximity to customers. Manufacturers also prefer to have few outlets in each city so as to push excess or dead stock and reduce cost of operations. It can be childcare center, financial planning center, dry cleaning center, weight loss center, internet parlour, telephone booths, entertainment parks, hotels, etc. As the name suggests instead of websites products or merchandise are listed in catalog and sent to target audience through various direct mar­keting channels. It is a very large subject and as important and wide as store retailing. The difference between service retailing and store/merchandise retailing is that products to be sold in service retailing are intangible (for example, healthcare services), perishable (for example, hotel rooms), suffers from inconsistency (financial investment advice) and has to produced instantly (for example Restaurants) for instant consumption. But location still remains important. These stores are subject to good buying power in the community, more young population, robust economic growth and widely exposed community to new trends. Image Guidelines 5. The payments are advance or gen­erally on delivery. It is a huge managerial challenge to run a retail operation. (6 Steps). General Merchandise Retailer: The major General Merchandise retailers are: (a) Discount Stores: 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. ICC Digital Codes is the largest provider of model codes, custom codes and standards used worldwide to construct safe, sustainable, affordable and resilient structures. This may be both personal (direct personal selling) and nonpersonal TV, the Internet, mail, … The products may be urgently required like medicines. These are sometimes called specialty stores. Retail is the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. 600 353,795,548 4.7% 589,659 400,000-800,000 40-100 2+ 50-70% 40-80 stores Characteristics of FoodRetailers 10. It is over 20 billion USD industry and is growing very fast in emerging markets like India. Typically enclosed with inward-facing stores connected by a common walkway. General Merchandise Retailer 2. Previously, retailers operated from physical stores by selling variety of merchandise or services. Retailers have a huge amount of information about customer behaviour but all this information is not passed on faithfully to the companies. They also sell “value” for money concept to wide variety of customers. Customers would like to travel some distance for their weekend trips. Content Filtrations 6. MAJOR RETAIL TYPES, CLASSIFICATION ... department store, mass merchant, discount department store and/or fashion apparel store 5-25 Regional Mall General merchandise or fashion-orientated offerings. Companies either need to have more leverage with the retailers or own some retail stores themselves to be able to know their customers better. Most customers buy in physical retail stores of various types having various product assortments and levels of service, but non-store retail formats such as mail order, automatic vending and Internet sales account for large amount of sales, especially in developed countries. These are different from kiosk selling where small format stores or stalls are managed by sales staff. The entire range if not very cheap or value product will be pictorially listed with price offers. They are a “discounted” specialty stores that offer narrow variety but deep assortment of similar kind of merchandise with limited services and just average atmospherics design. National chains operate throughout the country. The categories are: 1. Plagiarism Prevention 4. The retailer’s focus has to be on getting the operation of his store right, which is itself a stupendous task. Non Store Based Classification: Non Store retail organizations focus on establishing direct contact with the consumer. Categories like home care, cutlery, baby product, beauty prod­ucts, services, educational products are sold through this channel. 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. The retail store which is made of brick and mortar irrespective of its size and shape can be categorized as a national chain store, regional chain store, or a franchise. The payment mode differs from product to product and sometimes company-to-company. For instance, in India, Ebony Shopper’s Stop are such stores. The catalog can be general merchandise catalog (for example, JC Penny), specialty catalog (for example, Smith & Hawken sells garden tools). Retail Formats can be classified into the following categories: Store Based: Store based formats can be further classified into two formats based on the basis of Ownership or Merchandise offered. Module 2: Retail Environment Analysis. The business institutions or persons who sell goods to final consumers are called retailers. These stores can afford lower prices because of their influence on the manufacturers as they sometimes control the market of the category. These comprise nonpersonal selling as well as personal or direct selling. For instance, IKEA is one such store that stocks every type of furniture, in all price ranges and usage. The retail potential database consists of average household and total market potential estimates by each of sixty-eight retail store types. Also the friction-less store experience is being considered as the future of shopping. 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. Supermarket Self-service Offer Groceries Meat Produce Limited non-food items 11. Non-Store Retail Format. have been very famous. There are at least three levels of retail service: Self-Service. Like e-tailing the costs are generally lesser due to no or very less cost of distribution, advertisement, retailer margin and inventory. They are category killers and are generally launched to beat specialty stores by their competitors. Called category killers, these stores eliminate competition in the specified category. This paper presents a classification of online retail stores based upon an August 1996 convenience sample of 137 Internet retail … 9 Different types of retail stores. This sector has contributed heavily in employment generation and various low cost service retailing business models (like travel agency) has helped in entrepreneurship development. Vending machines are generally found in high traffic areas like malls, strip markets and university campuses. Sales and GrowthRate for Retail Sectors 8. That is why it is not very successful in India. There are many types of retail formats like discount stores, supermarkets, convenience stores, department stores, etc. A retailer is required to have both marketing and operational skills. Classifications based upon physical development characteristics and … Privacy Policy 8. A speciality store is one which focuses on one or two specific categories. The choice of the brands offered conveys the depth of the category, image of the store and reflects the intended target market. The price range in these stores could either be narrow, catering to a specific market segment, or it could be broad covering a large number of segments. The categories are: 1. Parking surrounds the outside perimeter. This concept goes against the very basic concept of store retailing as it drives away footfalls. Classification of retailers as per ownership: Today, consumer can shop for goods and services in a wide variety of stores. Some retail stores may charge normal or list prices, while some may charge lower than list prices on a regular basis. 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. These are small self-operating units in which merchandise or services are stored and dispensed to customers at their wish after cash is deposited into the machine. 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. This article throws light upon the two broad categories of retail store classification. 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. In India, 49/99 stores have just made mark in the segment. Internationally, Dollar Stores, Family Dollar Stores etc. The store types are based on the NAICS classification … These retail store formats vary from each other on the basis of their product assortment (product depth and width), price and location. Copyright 10. But this arrangement will leave a lot of customers dissatisfied as they may find the range too limited. Read this article to learn about classification of retail store formats on the basis of product, price and location! Retailing is the set of activities related to the sale of products and services to the ultimate customer. As the economy of a country develops, people will want more sophistication and variety in greater number of categories and this can be provided only in this type of format. Chain stores are classified as follows: 1. 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