Visual Merchandising and

Store Management UNIT 6 RETAIL FORMATS AND VM

APPROACH
Structure
6.0 Objectives
6.1 Introduction
6.2 Types of Retail Format
6.3 VM Approach for Various Formats
6.3.1 High Street
6.3.2 Mall
6.3.3 Department Store
6.3.4 Neighborhood Store/Moms Pop Retailers
6.4 Let us Sum Up
6.5 Key Words
6.6 Answers to Check Your Progress
6.7 Terminal Questions

6.0 OBJECTIVES
After going through this unit, you should be able to:
● describe the types of retail formats; and
● explain the VM approaches for various formats.

6.1 INTRODUCTION
In the pervious unit you have learnt about Planogram steps involved in creating new
Planogram. Now you are aware with the terms like Fixtures, Gondals, Bins and Hanging
Rails etc.
Moreover as a learner of Retailing, you must be familiar with retail industry. In fact the
retail industry is divided into two sectors i.e organized and unorganized .Organized
retailing refers to trading activities undertaken by licencesed retailers that is those
who are registered for sales tax ,income tax etc .These includes the corporate –backed
hypermarkets and retails chains and also the privately owned large retail businesses.
On the other hand, unorganized retailing refers to the traditional formats of low cost
retailing for example the local Kiranaa shops ,owner manned general stores ,paan shop
,convenience store, hand craft and pavement vendors ,etc. In this unit you will learn
about the types of Retail format and VM approach for various Retail format. Before
starting on the types of retail outlets, let us first understand what the term retail means.
Retail equates to sale of merchandise or services from a fixed location, directly to the
end user. These merchandise may be manufactured or imported by the retailer and may
or may not involve a whole seller or trader.

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 Retail Formats and
6.2 TYPES OF RETAIL FORMATS VM Approach

In today’s retail scenario we have different forms or outlets that are competing amongst
themselves and with each other to grab the attention of the shopper and make a sale.
Let us learn different types of retail formats which are as follows:
1) Malls: Usually an enclosed building structure that houses a variety of retail stores
all under one roof. This is one of the most convenient formats for the customer. As
a variant of different stores selling different category merchandise like clothes,
footwear, furniture, etc. are all at the same place. This saves time for the customer,
which would have been otherwise wasted in travelling. Similarly since there are
outlets that sell the same merchandise as well the customer also gets a wider
choice for purchase. However this creates a stuff competition between the outlets
to attract the customers inside. This is where the visual merchandising is extremely
important. The number or malls in India are increasing every day. We have luxury
malls like DHL in Delhi and Palladium in Mumbai, then we also have other malls
like Korum mall in Thane, Forum Mall in Bangalore, and many more. Look at
Figure 6.1 which shows the outside and inside view of mall.

Figure 6.1: Inorbit Mall, Mumbai

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Visual Merchandising and 2) Departmental Stores: A department store is a large store that offers a variety
Store Management
of product categories with a large assortment. They have different departments
within the store that are dedicated to different categories like home furnishings
department, footwear department, watches department, etc. They stock and sell
merchandise of different brands. Each brand has a dedicated area within the
department. Examples: In the cosmetic department L’Oreal, Lakme, etc. have
their own counters. Some of the most prominent department stores in India are
Lifestyle, Shoppers Stop, Westside, etc. Figures 6.2 and 6.3 show the outside and
inside appearance of Store.

Figure 6.2: Department Store- Pantaloons, Kankurgacchi

Figure 6.3: Pantaloon Shop on Bannerghatta Road in Bangalore

3). Supermarkets: They sell groceries and other household items at a reasonable
price. They stock a large variety of merchandise ranging from fresh produce,
packed product, bath items, even kitchen utensil and plastic products. Supermarkets
are larger than a next door grocery store but smaller than a hypermarket. Example:
Relincefresh, Spencer’s, etc.
4) Hypermarkets: It is larger than the supermarket, as it houses a larger variety of
products. The category of merchandise stocked is also larger ranging from food to
even clothing. It is a cross between a supermarket and a department store. It is of
great convenience to the customers as they get everything they would require in a
house in one store. Example: Big Bazaar, Hyper City, Shop rite Hyper, etc. Look at
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the figure 6.4 which shows the outside looks and inside atmosphere of Hypermarket.
 Retail Formats and
VM Approach

Figure 6.4: Hypermarket- Hypercity, Malad, Mumbai

5.) Specialty Stores: These are the ones that sell only one category of merchandise
like only electronics, or cosmetics or sport and fitness products etc. Specialty stores
usually stock all the brands within the category, providing a full range of choice to
the customers between the brands and merchandise. Example: Croma, Total shorts,
Crossword, etc. Figure 6.5 shows inside look of specialty store.

Figure 6.5: Crossword, India

6) Exclusive Stores: The stores that sell merchandise from only one brand are the
exclusive store like Rebook, Levi’s, etc. They are the flagship stores for the brands
or brand franchises. Look at Figure 6.6 which shows different types of exclusive
stores.

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Visual Merchandising and
Store Management

Figure 6.6: The Italian men’s wear brand, Viavero’s flagship store in Gurgaon’s
Ambi Mall, designed by Lotus
7) Kirana/Mom and Pop Stores: These are local family owned businesses. These
neighborhood stores are however fast reducing in number due to stiff competition
from the big organized retailers. These stores could sell any merchandise from
clothes, shoes, grocery, etc. They are best known with the local region from which
they operate. In the below figure 6.7 and 6.8 show the Local Kirana Stores and
Mom and Pop Stores.

Figure 6.7: Local Kirana Stores

94 Figure 6.8: Dark Waters in Bandra

8) Discount Stores: These are the stores that sell their merchandise at a lower price Retail Formats and
VM Approach
that usually asked at the other regular stores. This is to attract the customers who
are bargain hunters. Discount stores make the strategy of high volumes low profit
margin in their business. The merchandise that the discount store sell range from a
variety of known brands. Examples: The Brand Factory, Megamart, Promart, the
Loot, etc. The Figure 6.9 shows different types of Discount stores

Figure 6.9: Discount Store- Megamart, Chennai

9) Variety Stores: These stores sell all variety of merchandise at one fixed price.
They are different from a discount store, as these have a one fixed price for
anything and everything sold in their store. The merchandise is usually household
items like cleaning supplies, bath products, cookies and chocolates, etc. which
usually falls in more or less the same price range. Example: MyDollarStore. Fig.
6.10 shows the appearance of a Variety stores.

Figure 6.10: Variety Store: Mydollarstore, Jalandhar

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Visual Merchandising and 10) Kiosk: They are the small open shops that sell low value item. They do not have
Store Management
wall like a normal shop but a small dedicated area in a mall or market place. There
is a variety of merchandise for which a kiosk can be opened like a flower, balloon,
newspapers or food, beverages, etc. Examples: Florist is a flower kiosk seen in lot
of malls. Another example is Nescafe kiosk. Figures 6.11 and 6.12 show the different
types of Kiosks.

Figure 6.11: Flower Kiosk: Florist, Korum Mall Food Kiosk

Figure 6.12: GO Telecom Kiosk in Sahara Mall, Riyadh, Saudi Arabia

11) Street Vendors: Very common in India, they are the vendor who set up their
store on the footpaths of the main street. The merchandise is cheap and low quality.
This is the unorganized part of Indian retail. Look at the Fig. 6.13 which shows the
Street vendors.

96 Figure 6.13: Street Vendors: Linking road, Bandra, Mumbai

Let us see Table 6.1 given below which summarizes the Retail formats. Retail Formats and
VM Approach
Table 6.1 Summarization of Retail formats
Format Target Products Pricing PromotionDistribution Service
Market Carried Strategy Emphasis Level
Mall specialty specialty competitive advertising shopping area assorted
Departmental store mass general competitive advertising shopping area assorted
shopping mall
Supermarket mass general discount advertising stand-alone self
Hypermarket mass specialty competitive advertising shopping area assorted
shopping mall
Specialty store specialty specialty competitive advertising shopping area assorted
shopping mall
Exclusive store specialty specialty full advertising stand-alone Exclusive
exclusive shopping area Selling
Kirana/Mom and mass general competitive direct mail stand-alone assorted
Pop store specialty specialty advertising shopping area
Discount store mass general discount advertising stand-alone self
specialty shopping area
Variety store mass general competitive advertising stand-alone assorted
Kiosk mass general Cheap none stand-alone self
shopping area
Street vendor mass specialty cheap none stand-alone self
shopping area

Check Your Progress A

1. Enumerate the types of retail formats.
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2. What do you understand by Malls?
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3. What do you understand by Kiosks?
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Visual Merchandising and
Store Management 4.
Which of the following statements are True / False?
a) Departmental stores is a large store that offers aerially of product categories
with a large assortment.
b) Supermarkets are smaller than a next door grocery store.
c) Hypermarkets are Luxury Stores

6.3 VM APPROACHES FOR VARIOUS FORMATS

You have already learnt about the types of retail formats. Let us learn about VM Approach
for various formats.
While planning the visual plan for any kind of formats, you should remember that the
basic principles remain unchanged. However there are some unique differences that a
visual merchandiser should address to make a VM plan successful. The approaches for
various formats are discussed below:

6.3.1 High Street

The high street refers to the main street in the city or town that is concentrated with the
most retailers. It is that street in the city that majority of the shoppers stop for shopping.
The term is most commonly used in England where almost each tube station has a high
street to its name. However the term is not commonly used in India. Since the store
open out into the street all the security issues should be addressed primarily. A high
street store has more freedom in terms of designing a creative façade as it does not
have to worry about the mall polices. Plants and plantations can be added on to the
façade to create a more natural and elegant store front. Other external display elements
can also add to the desired theme of the store. However, one must make sure that they
do not violate any safety and municipality policies that are required to be maintained.
Apart from the façade and store entry and exits there is no difference in the interiors of
a high street or a mall store. Look at the Figures 6.14 and 6.15 which show outside and
inside view of High street Store.

98 Fig.ure 6.14: Good Earth at Khan Market, New Delhi design by Lotus
 Retail Formats and
VM Approach

Figure 6.15: Levi’s Store at Linking road, Bandra, Mumbai

6.3.2 Mall
As discussed earlier in this unit that Malls are the house of various stores in a building
structure. In general each mall has a couple of anchor stores that act as a destination
stores for the customers. More often they are the large departmental stores within the
mall or a supermarket/hypermarket. The special features of Malls are as follows:
I) Entrance: A mall entrance is one of the most important points in a mall design. It
is the first point of contact between the mall and the customer. It is not just a face
and reputation of the mall at stake, but also the face for the brands that it houses
inside. Any prestigious brand will make sure that the mall is up to its particular
standard before renting space in it. Hence, a mall has to match the image of the
brands it intends to attract for rentals.
II) Mall décor: Mall décor and theme similar to store interiors is infused architectures
and light fixtures and fittings. However unlike a store where the merchandise is
the highlight of all the interior efforts, in a mall the ambiance is everything. There
are large number of malls and the same shop and brands are available at a lot of
places. It is the service and facility that a mall can provide which becomes the
deciding factor between the malls. When it comes to mall, ambiance is everything
in attracting shopper.
III) Customer convenience: Malls have gained importance for obvious reasons like
the convenience of finding a large number of retail outlets and brands in one place.
It can cater to the need of all types for women, men, kids or house furnishing.
Special services like charging points, baby day care, baby changing rooms, etc.
that distinguishes a good mall for an ordinary one. Mall seating provided for tired
shoppers should equally be comfortable as well as complement the mall theme and
décor.
IV) Brands/store: The outlets that are available in a mall have to follow certain
guidelines of the mall in terms of the façade, window display (some mall do not
allow to be stuck on the store window glass), safety measures, etc. Most of the
mall has a pre designed and standard space allocated for the store branding. This
is done to maintain the mall aesthetics. Hence unlike in a standalone store in a high
street a brand cannot modify and alter the façade to suit its convenience. Look at 99
the figure 6.16 which shows interior look of Mall.
Visual Merchandising and
Store Management

Figure 6.16: DLF Emporia Mall

Check your Progress B

1. Enumerate VM approaches regarding High Street.
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2. Why is entrance point important in Mall?
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 Retail Formats and
3. What do you understand by customer convenience in Malls? VM Approach
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6.3.3 Departmental Store

Since a large store is converted into different departments it is important to address
each department as an individual. However the overall look and feel should be maintained
throughout the store. Whether or not it is decided to label each department with its own
category signage there should be a clear distinction between the different departments.
Each brand renting a space within a department should have their own signage which
should be designed to satisfy the store guidelines. Here the brands need to represent
the brand image as well as adhere to the store policies as well. The fixtures that are
chosen should maximize the stock capacity with the space as well as be convenient to
the customers. Look at the Figure. 6.17 which shows men’s wear Department stores.

Figure 6.17: Louis Philippe in the men’s wear department of Shoppers Stop, Delhi

6.3.4 Neighborhood Stores/ Mom & Pop Retailers

Usually small in size and friendly and cozy in atmosphere, the neighborhood stores are
much more flexible compared to chain retail outlets. Since they are owned and managed
by a single person or a family it is more conservative in its display approach. They do not
endorse the self-service approach and have salesmen to help the customers by showing
them what they have to offer, which is stacked in wall fixtures behind the counters.
However to compete with and maintain a market share these stores needs to adapt a
more contemporary display approach but still maintain its friendly approach. It is its
personal interaction and familiarity with its shoppers which is their selling point. As
these stores are located facing the streets it can take advantage of the freedom to
design creative facades like the stores on the high streets. Note that local retail outlets 101
Visual Merchandising and in India traditionally do not invest in elaborate window displays. However this trend is
Store Management
changing and more and more traditional stores are engaging in creative window displays
and visual merchandising. Look at the Figures 6.18 and 6.19 which show the Local or
Neighborhood shops.

Figure 6.18: Some local sari shops

Figure 6.19: Outfits, a local apparels store in Bandra, Water field Road Mumbai

6.4 LET US SUM UP

There are different types of retail formats such as Malls, Departmental store, Super
market, Hyper market Specialty store, Exclusive stores, Kirana Stores, Discount stores,
Variety stores, Kiosk and Sheet vendor. Malls are an enclosed building structure that
houses a variety of retail stores all under one roof. This is one of the most convenient
formats for the customer. Whereas Departmental stores is a large store that offers a
variety of product categories with a large assortment. However Supermarkets sell
groceries and other household items at a reasonable price.
Hypermarkets are slightly different from Departmental store. We can say it is higher
categories of Supermarkets. Therefore, Hypermarkets is a house of large variety of
products. For example Big bazaar , Hypercity.
Specialty stores are the ones that sell only one category of merchandise like only
electronics, or cosmetics or sport and fitness product etc. Whereas Exclusive stores sell
merchandise from only one brand are the exclusive store like Rebook Levi’s, etc. They
are the brand franchises.
Kirana/Mom and Pop stores are local family owned business. These neighborhood stores
are however fast reducing in number due to stiff competition from the big organized
102 retailers. Discount stores are the stores that sell their merchandise at a lower price that
usually asked at the other regular stores. Whereas Variety stores sell all their variety of Retail Formats and
VM Approach
merchandise at one fixed price.
Kiosks are the small open shops that sell low value item. Whereas Street vendors are
very common in India. They are the vendors who set up their store on the footpaths of
the main street. The merchandise is cheap and low quality. Kiosk and Street vendors
are part of unorganized retail sector in India.

6.5 KEY WORDS

Discount Stores : These stores sell their merchandise at lower prices.
High Sheet : It is the sheet in the city that majority of shoppers visit for
shopping.
Kirana /Mom and : They are local family owned business stores.
Pop stores
Kiosk : They are small and open shops that sell low value items.
Sheet vendor : They set up their stores at foot path.
Variety Stores : These stores sell all their variety of merchandize at one
fixed price.

6.6 ANSWERS TO CHECK YOUR PROGRESS

A. a) True b) False c) False

6.7 TERMINAL QUESTIONS

1. Discuss various types of retail formats with suitable examples.
2. Describe the various VM approaches for Retails formats.
3. Explain the features of Mall, Departmental stores, and Neighborhood grocery stores.
4. Write Short Notes on:
a) Hypermarkets
b) Exclusive Store
c) Kirana /Mom and Pop Stores

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