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Types of Ownership

Types of Ownership
1. Independent, Single-Store Establishment
2. Corporate Chains
3. Franchises

Corporate Retail Chain

A retail chain is a company operating multiple
retail units under common ownership.
centralization of decision making in defining and
implementing strategy.
Corporate chains can sell at lower prices.
In addition, to mergers and acquisitions leading to
consolidation, the retail chains are focusing their
expertise on managing a specific retail format.

Franchising
Franchising is a contractual agreement between a
franchiser and a franchisee.
The franchising ownership format attempts to
combine advantages of
owner-managed
businesses with efficiencies of centralized
decision making in chain store operations.
Franchisees are motivated to make their store
successful because they receive the profits after
the royalty is paid.

Other Forms of Ownership

Some retail outlets are owned by their customers
and others are owned by government
agencies. In consumer cooperatives, customers
own and operate the retail establishment.
Consumers have ownership shares, hire full-time
managers, and share in the stores profits through
price reductions or dividends.

Local, state and federal government agencies

sometime own retail establishments.

Thank
You