Retail Formats

Retail Formats encompass various types of retail establishments tailored to different consumer needs and preferences. These include department stores offering a wide range of products, specialty stores focusing on niche markets, discount stores providing low-priced merchandise, and online retailers facilitating e-commerce transactions. Each format serves distinct purposes and targets specific segments of the consumer market.

Ownership-Based Retailing:

• Independent Retailers:

Operate single shops, determining policies independently, often passed down through generations. They build strong personal relationships with customers. Example: Stand-alone grocery shops, florists.

• Chain Stores:

Under common ownership, they offer similar merchandise across multiple outlets, with the advantage of tailored merchandise based on local preferences. Example: Westside Stores, Shopper’s Stop.

• Franchises:

Operate under established brand names or formats through agreements between franchisers and franchisees. Can be business format (e.g., Pizza Hut) or product format (e.g., Amul ice cream parlors).

• Consumers Co-Operative Stores:

Owned and run by consumers aiming to provide essentials at reasonable costs compared to market rates. Examples include Sahakar Bhandar in India and Puget Consumers Food Co-Operative in the northern US.

Merchandise-Based Retailing:

• Convenience Stores:

Small stores offering basic essentials, often open late or 24/7, targeting consumers seeking quick and easy purchases. Example: 7-Eleven.

• Supermarkets:

Large stores with high volume, low-profit margins, offering a wide range of fresh and preserved food items, groceries, and household items. Example: Food Bazaar.

• Hypermarkets:

One-stop shopping retail stores with vast selling spaces offering a wide range of products, including non-grocery items, often including restaurants and coffee shops. Example: Big Bazaar.

• Specialty Stores:

Offer a particular kind of merchandise with high-level service and product information, occupying at least 8000 sq. ft. selling space. Example: Croma for electronics.

• Departmental Stores:

Multi-level, multi-product retail stores offering a variety of items across food, clothing, and household categories. Example: Marks & Spencer.

• Factory Outlets:

Sell excess or discounted merchandise, often located near manufacturing units. Example: Nike factory outlets.

• Catalogue Showrooms:

Provide product catalogues for consumers to refer to, selecting products to be delivered from the company’s warehouse. Example: Argos.

Non-Store Based (Direct) Retailing:

• Mail Orders/Postal Orders/E-Shopping:

Consumers place orders via mail or online after referring to product catalogues. Example: Online shopping.

• Telemarketing:

Products advertised on television with orders placed by calling the retailer’s number, followed by delivery. Example: Asian Skyshop.

• Automated Vending/Kiosks:

Offer frequently purchased items round the clock, such as drinks, candies, and newspapers. Example: Vending machines.