RETAIL FORMATS

“This is the general nature of the retail mix in terms of range of products and services, pricing

policy, promotional programmes, operating style or store design and visual merchandising.”

Classification

1. Form of Ownership

Independent Chain

Franchising Co-operative

Independent Retail…

• Generally operates one outlet • 98% of all the retail businesses in India, are

managed and run by independents• Requires low investment and little technical

knowledge.• Fail due to poor management skills and

inadequate resources. • Eg: Furniture stores, bookshops, LPG Gas

Agencies, neighbourhood stores etc.

Chain Retail…

• Common ownership of multiple units.• The purchasing and decision making are

centralized.• They can maintain their prices, thus increasing

their margins, or they can cut prices and attract greater sales volume.

• Examples: Shoppers stop; Café-Coffee day…

Franchising…

• A contractual arrangement between a “franchiser” and a “franchisee”.

• To conduct a certain form of business under an established name and according to a specific set of rules.

• Classic examples of franchising are; McDonalds, Pizza Hut

Co-operatives…

• A group of independent retailers, that have combined their financial resources and their expertise in order to effectively control their wholesaling needs.

• Individual retailers retain their independence, but agree on broad common policies.

• Amul is a typical example.

2. Store Strategy Mix

Convenience Store Super markets

Department Stores Speciality Store Hyper Markets

Convenience Store…

• A small store that stocks a range of everyday items.

• Differ from general stores and village shops in that they are not in a rural location and are used as a convenient supplement to larger stores.

Supermarket…

• A large form of the traditional grocery store• A self-service shop

Department Stores…

• A retail establishment with a building open to the public which offers a wide range of consumer goods such as clothing, housewares, furniture and appliances.

• Eg: Pantaloon, Spencers etc.

Speciality Store

• Concentrates on the sale of a single line of products or services

• Eg: Tanishq for jewellery McDonalds, Pizza Hut for food services

Hyper Markets

• A large superstore, combining a supermarket and departmental store, offering full lines of grocery and general merchandise, all under one roof.

3. Non Store Retailing

Vending MachinesIn Home Retailing

Telephone RetailingCatalog Retailing

Electronic Retailing

Vending Machines…

• Products are sold directly to customers/buyers from machines.

• Dispense products which enable customers to buy after closing hours.

In Home Retailing…

• Door-Door selling.• Gives the sales person an opportunity to

demonstrate products in a very personal manner.

• Examples: Eureka Forbes vaccum cleaners and water

filters.

Telephone Retailing…

• Contact between the prospect and the retailer over the phone

Examples: A large number of mobile phone service

providers use this method.Private insurance companies

Credit companies …

Catalog Retailing…

• Retailers who mail catalogues to their customers and maintain showrooms where samples of the products for sale are displayed; orders are filled from back-room warehouses.

• Advantages: Lower operating costs

lower rents smaller sales staff

absence of shop lifting…

Electronic Retailing…

• Retailers communicate with customers and offer products and services for sale, over the internet.

• Examples Amazon.com

E-bay ...

Thank you