1)What are the different types of retailers?

Answer: Retail industry includes all set of activities to sell the goods or services to the final consumers for personal, non business use. There are three types of retailers:1) Store retailers: operates on a fixed point of sale and depending upon the certain criteria they are divided into Department store, Discount Stores, Specialty Store, Category Killer, Convenience Store, Off-Price Retailer, Warehouse Clubs. 2) Non-store retailers: use various methods such as broadcasting of "infomercials" direct response advertising etc. They are categorized as Direct Selling, Direct Marketing, Automatic Vending and Buying Service. 3)Corporate Organization: achieve economies of scale, greater purchasing power wider brand recognition and better trained employees because of the central buying of the merchandising. They are classified as Corporate Chain Store, Voluntary Chain, Retailer Co-operative, Consumer Co-operative, Franchise's Organization and Merchandising Conglomerate.

2) Retail Categories: Service Level
Retailers attract customers not only with desirable products and affordable prices, but also by offering services that enhance the purchase experience. There are at least three levels of retail service:

Self-Service – This service level allows consumers to perform most or all of the services associated with retail purchasing. For some consumers self-service is considered a benefit while others may view it as an inconvenience. Self-service can be seen with: 1) selfselection services, such as online purchasing and vending machine purchases, and 2) selfcheckout services where the consumer may get help selecting the product but they use self-checkout stations to process the purchase including scanning and payment. Assorted-Service – The majority of retailers offer some level of service to consumers. Service includes handling the point-of-purchase transaction; product selection assistance; arrange payment plans; offer delivery; and many more. Full-Service – The full-service retailer attempts to handle nearly all aspects of the purchase to the point where all the consumer does is select the item they wish to purchase. Retailers that follow a full-price strategy often follow the full-service approach as a way of adding value to a customer’s purchase.

In the majority of retail situations. Ability to Acquire the Right Products – A customer will only be satisfied if they can purchase the right products to satisfy their needs. when a consumer purchases from another consumer (e. In the US alone there are over 1. Product Presentation – Once obtained products must be presented or merchandised to customers in a way that generates interest. But as we discussed in the Distribution Decisions tutorial. and provide consumer feedback to the product marketer. For consumers the most important benefits relate to the ability to purchase small quantities of a wide assortment of products at prices that are considered reasonably affordable. This distinction can get confusing but in the US and other countries the dividing line is whether the one selling to consumers is classified as a business (e.3) What is Retailing? Retailing is a distribution channel function where one organization buys products from supplying firms or manufactures the product themselves. Building “traffic” is accomplished with a variety of promotional techniques such as advertising.100. some manufacturers also operate their own retail outlets in a corporate channel arrangement. Consequently. eBay) the consumer purchase would not be classified as a retail purchase. they must seek suppliers who will supply products demanded by customers. obtains product from one party in order to sell to another) from which a consumer purchases products. such as coupons. build product demand through retail promotions..g. including local newspapers or Internet. and then sells these directly to consumers.. a consumer does not always buy from retailers. As a reseller. Retail merchandising often requires hiring creative people who understand and can relate to the market. The key issues include:     Customer Satisfaction – Retailers know that satisfied customers are loyal customers. Traffic Building – Like any marketer. legal and tax purposes) or is selling as a hobby without a legal business standing. For suppliers the most important benefits relate to offering opportunities to reach their target market. retailers offer many benefits to suppliers and customers as we discussed in the Distribution Decisions tutorial. Since a large percentage of retailers do not manufacture their own products. While consumers are the retailer’s buyers. 4) Concerns of Retailers Retailers are faced with many issues as they attempt to be successful.e. an important objective for retailers is to identify the products customers will demand and negotiate with suppliers to obtain these products.. and specialized promotional activities. Thus. retailers must develop strategies intended to build relationships that result in customers returning to make more purchases. A retailer is a reseller (i. retailers must use promotional methods to build customer interest. . For retailers a key measure of interest is the number of people visiting a retail location or website.000 retailers according to the 2002 US Census of Retail Trade.g. For instance. the organization from which a consumer makes purchases is a reseller of products obtained from others and not the product manufacturer.

Understanding the trade-off between costs and benefits of locations is an important retail decision. The physical layout is more than just deciding in what part of the store to locate products. Layout is also important in the online world where site navigation and usability may be deciding factors in whether of a retail website is successful.. kiosks. 6) What is the four levels of retail services? 1. For many retailers designing the right shopping atmosphere (e..g. customer relationship management software). self-service allows customers to save money by carrying out their own locate-compare-select process.   Layout– For store-based retailers a store’s physical layout is an important component in creating a retail experience that will attract customers. these groups are not meant to be mutually exclusive. sound) can add to the appeal of a store. Self-service: The cornerstone of all discount stores. In fact.. scanners. although they can ask for help.g.. while possibly commanding higher land usage fees. For our purposes we will separate retailers based on six factors directly related to major marketing decisions:       Target Markets Served Product Offerings Pricing Structure Promotional Emphasis Distribution Method Service Level and one operational factor:  Ownership Structure However.. 3. online shopping carts. Limited service: These retailers carry more shopping goods. Self-selection: Customers find their own goods. self-serve checkout). objects. light.g.g.g. purchase recommendations) and many more. use of RFID tags for tracking). product movement (e. as we will see in some way all retailers can placed into each category. 2. Location – Where to physically locate a retail store may help or hinder store traffic. web technologies (e. Well placed stores with high visibility and easy access. may hold significantly more value than lower cost sites that yield less traffic. point-of-purchase (e. and customers need . Keeping Pace With Technology – Technology has invaded all areas of retailing including customer knowledge (e. 5) Ways to Categorize Retailers There are many ways retailers can be categorized depending on the characteristics being evaluated.

The response from both customers and associates has exceeded our expectations. including self check out and self service kiosks. bill payment or gift registry. convenience and control in your retail operations. the higher proportion of specialty goods. depend on NCR. The high staffing cost." What both enjoy are levels of reading accuracy (98. Chris Hjelm.5%) that reduces the bane of self-service checkouts – manual interventions. They can also be called in to deal with customer errors and for age verification when shoppers are purchasing knives and alcohol etcetera. has stated: "We are currently evaluating and looking to expand the Advantage Checkout into additional Kroger stores to determine its ultimate potential. slower-moving items. US retailer Kroger is testing new tunnel scanning technology from Fujitsu at its store in Hebron in Kentucky. 8) Retail and self-service . Kellett says it has the capacity to read barcodes from any angle and also read letters and potentially take a photograph for optical recognition of goods. chief investment officer at Kroger.innovation In the third part of just-food's briefing on self-service in retail. 4. . add up to high-cost retailing. Full service: Salespeople are ready to assist in the locate-compare-select process. It is the world's first store to be equipped with such technology. Glynn Davis looks at two of the key trends driving innovation in the sector . This is where a store assistant has to intervene as a result of a failure of the device to read a barcode. and involves shoppers placing their items on the belt before they move under the scanner. While much of the activity has been around developing compact units – for small basket sizes there has also latterly been a desire to handle the bigger shopping baskets and this has led to the creation of tunnel scanning.the need to cater for weekly shopping and the rise of mobile phone technology.more information and assistance. 7) Retail Self-Service Whether for retail POS systems. It is designed for very large baskets (four or five trolleys in volume). Our retail POS systems are found worldwide in virtually every retail format. The stores also offer services (such as credit and merchandise-return privileges). and more services. Our versatile self-service kiosk solutions raise the bar for speed. which Kroger calls its 'Advantage Checkout'.

says. says: "The scanner is so fast – at 60 articles per minute ." When these issues have been addressed.Other manufacturers are also developing tunnel scanners but are finding there are still issues to be overcome. product manager at Wincor Nixdorf. "There will be big demand for these units for heavy." As well as the bagging issue. marketing manager for retail store solutions at IBM. mobile is undoubtedly opening the doors to customers being more pro-actively engaged in the whole shopping process by enabling them to potentially undertake more selfservice activities. . as well as Coop in Switzerland. Meanwhile. We've a new traffic jam in the bagging area and at the moment we're designing a special solution for this challenge. check-out and receive personalised offers at the three trial stores. NCR area industry director for retail and hospitality John Curnow says he is also sceptical of how beneficial to retailers and customers are the 98% scanning rates that are now being claimed by his rivals. Nevertheless. he notes that retailers will easily be able to repurpose the scanners for use. "In-store scanners will have only a short time-frame because customers will not want to pick up another hand held device in addition to their mobile phone. Klein predicts a great future for the technology. for one. Both US technology company NCR and retail hardware and software supplier Wincor Nixdorf have stated that the packing/bagging element is the nut that still needs to be cracked. Gordon Klein. in the stock room. questions whether cost is still an issue and she expects 3D recognition technology to be a feature of selfservice checkouts in the near future. There is no doubt that this sort of personalisation will play an increasingly big part in customers' shopping journeys in the future. "What about the other two per cent?" he asks. which has until now been too costly to implement. say.the new challenge is packing. big basket sizes and for those customers who've not used a self scanning gun. An example of shoppers using their own mobiles can be seen at the Ahold-owned US chain Stop & Shop where the retailer has worked with Modiv Media to produce an iPhone app that duplicates its existing Scan It! Hand held device (from Motorola) that has been in use for nearly four years and accounts for 10% of its sales." Ken Duffy. They will not replace scan and bag but they will take away some of the traditional lanes [in food stores]. One of the more possible consequences is that customers' own devices will replace the existing hand-held self-scanning units that are currently used by a number of retailers including Casino and Auchan in France. Fujitsu retail consultant Sarah Kellett. From the customers' own mobile phone it is now possible for them to scan goods. A solution could be the use of 3D recognition technology in the scanning process.

These preferences are then recognised on any self-service device that the shopper subsequently uses in the retailers' stores. Kiosks sit comfortably in this personalisation eco-system.Personalisation plays a role in a development from US technology company NCR. Duffy believes kiosks also have a limited shelf-life because shoppers will be performing most kiosk functions on their own mobile devices in the near future. They. will be the big driving forces in changing the way technology influences the relationship between retailers and consumers within the physical store. Such innovations are merely scratching the surface of what mobile devices will do for selfservice activities in food retailers' stores. which might make life easier for shoppers bearing in mind that such devices can be used for an almost unlimited array of functions. This will link consumers closely with retailers and lead to the interchange of much information between them. For instance. this could involve them highlighting that they are left-handed (making it easier to use a kiosk) and selecting the payment card that they prefer to use (so they don’t have to enter their card details each time). Undoubtedly laying the foundations for more personalisation is the move by Tesco to introduce wi-fi into its stores. These preferences can be set through a retailer's existing loyalty scheme or via the newly introduced NCR Enterprise Preference Manager. John Curnow. "Why wouldn't a retailer say: 'We realise you are looking at televisions so here’s a discount voucher if you buy a set from us today'? It's a brilliant opportunity to utilise the power of [realtime customer] data that wi-fi will bring to retailers. 9) ." he suggests. rather than potentially losing sales to rivals. Tesco recognises the current desire for customers to scan products in-store and compare prices with other retailers but. which will lead to many imitators. However. says its personalisation software platform enables self-service devices to recognise a customer's pre-set preferences. area industry director for retail and hospitality at NCR. Curnow says the UK retailer can instead use it as an opportunity to drive sales. along with customers' rapid adoption of such devices.