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Forms of Retail

Forms of Retail

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Marketing Applications and Practices Types of Retail Formats

Prepared By Santosh Ghutukade Vaibhav Patankar

Roll No. 51 37

Submitted To, Professor Surbhi

Introduction
³Retailing includes all activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing.´ A retailer is a person, agent, agency, company, or organization which is instrumental in reaching the goods, merchandise, or services to the ultimate consumer. Retailing is the last stage of any economic activity where Retailer sells the product or service to the end consumer. The distribution of consumer products begins with the producer and ends at the ultimate consumer. Between the producer and the consumer there is a middleman---the retailer, who links the producers and the ultimate consumers. A common assumption is that retailing involves only the sale of products in stores. However, it also includes the sale of services like those offered at a restaurant, parlor, or by car rental agencies. Retail is India's largest industry, accounting for over 10 per cent of the country's GDP and around eight per cent of the employment.

Types of Retail Formats
1. Discount stores
Discount stores are the General merchandisers that offer brand name Products at lower prices to the consumers. Most discount department stores offer a wide assortment of goods; others specialize in such merchandise as jewelry, electronic equipment, or electrical appliances. These retailers are ready to accept lower prices in exchange for high sales Volume. They offer a variety of perishable/ non perishable goods. Example of Discount stores is subiksha, Piramal¶s TruMart, Wal-Mart the largest retailer in the world.

2. Factory outlets
Factory outlet is a retail store in which manufacturers sell their stock directly to the public through their own branded stores. Factory outlets are the manufacturer owned outlets that sell off Goods that cannot be sold through Traditional retailers. Factory outlets are based on the concept of value positioning. These retailers Offer medium-high quality goods at deep Discounts to the consumers.

3. Supermarkets
A supermarket, also called a grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments. It is larger in size and has a wider selection than a traditional grocery store and it is smaller than a hypermarket or superstore. Supermarkets are based on the concept of scrambled merchandising, in which goods & services that are unrelated to one Another are sold together. Example of supermarkets Nilgiris, Apna Bazaar.

4. Hypermarkets
Hypermarket is a superstore which combines a supermarket and a department store. It caters to specific target market. A hyper market generally has an ambience which attracts the family as whole. Hypermarkets allow customers to satisfy all their routine weekly shopping needs in one trip. Typically they have business models focusing on high-volume, low-margin sales. This type of retailing is growing very fast. Example of hypermarket is Pantaloon retail¶s Big Bazaar.

5. Department Stores
A department store is a retail establishment which specializes in satisfying a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice multiple merchandise lines, at variable price points, in all product categories. A department store usually sells a general line of apparel for the family, household linens, home furnishings and appliances. Large format apparel department stores include Pantaloon, Ebony and Pyramid. Others in this category are: Shoppers Stop and Westside.

6. Convenience stores
A convenience store is a small store or shop that sells items such as candy, icecream, soft drinks, lottery tickets, cigarettes and other tobacco products, newspapers and magazines, along with a selection of processed food and perhaps some groceries. They are often located alongside busy roads, at gas/petrol stations or near railway stations or other transportation hubs.

7. Specialty Store
Specialty stores are small stores which specialize in a specific range of merchandise and related items .It consists of a narrow product line with deep assortment. It include fashion apparel, jewelry, fabrics, sporting Goods, computers etc. Example of specialty store Bata store deals only with footwear.

8. E-Tailing
E-Tailing is a retail format in which retailers communicate with customers and offer products and services for sale, over the internet. It provides complete and updated information on price, quality and styles through direct interaction with consumer. Example of E- Tailing is Amazon.com, E-bay and Bazee.com, HDFCSec.com.

9. Catalog Retailers
Catalog retailers are one who mail catalogues to their customers and maintain showrooms where samples of the products for sale are displayed. The basic attraction for shoppers is convenience. The advantages to the retailers include lover

operating costs, lower rents, smaller sales staff and absence of shop lifting. This type of retailing saves consumer time.

10.

Warehouse Stores

This is a form of mass discounter that often provides even lower prices than traditional mass discounters. In addition, they often require buyers to make purchases in quantities that are greater than what can be purchased at mass discount stores. These retail outlets provide few services and product selection can be limited. 60 ± 70 percent of sales in these stores are wholesale Purchases by hotels, restaurants, small retailers & Service firms. Membership cards are required to gain entry into warehouse stores.

11.

Kirana stores

Kirana stores are owned and operated on a small scale, usually in a space of 500sq.ft. Or less. The smallest retail formats which are the highest in number in India. It mostly deals with food and glossaries item. Kirana stores are operated by the owners themselves and thus provide the benefit of low operational costs. Kirana stores are likely to be in the immediate locality and thus have a better understanding of customer preferences.

12.

Variety stores

A variety store or price-point retailer is a retail store that sells inexpensive items, usually with a single price point for all items in the store. Typical merchandise includes cleaning supplies, toys, and confectionery. It offer limited customer service and employ few number of people. Because of its limited growth it is moving towards specialty stores.

13.

Shopping Malls

These are the largest form of retail formats. They provide an ideal shopping experience by providing a mix of all kinds of products and services, food and entertainment under one roof. Examples are Sahara Mall, TDI Mall in Delhi. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under one common roof.

14.

Direct response retailers

These types of retailers Advertise products on radio/TV & take mail or Telephone orders and Take credit cards & operate 24 hrs. Example of direct response retailers are Television shopping programs, home Shopping.

15.

Automatic vendors

Automatic vending enhance customer Service inside traditional retail stores & Provide convenient service where stores do not exist. Examples of automatic vendors are ATMs & Airline ticket machine.

Conclusion
Retail marketing is important to keep consumers updated on new local available products as well as promotion of incentive sales for customer growth and retention.
The nations that have enjoyed the greatest economic and social progress have been those with a strong retail sector. There for retailer is one of the promotional channels for promoting the product.

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