TYPES OF RETAILERS

BY
SAURABH SINGH
NIFT CHENNAI
CLASSIFYING RETAIL
OUTLETS

1.On the Basis of Ownership

1.On the basis of Merchandise

CLASSIFICATION BY OWNERSHIP
Independent
Independent
Retailers-one
Retailers-onestore
store
ownership
ownership

Chain
ChainStores-many
Stores-manystores
stores
but
butonly
onlyone
oneowner
owner

Franchises-many
Franchises-manyowners
owners
of
ofmany
manystores
stores

Cooperatives – member
consumers are the owners

Leased
 Independent Retailer

 Owns and operate only one retail outlet

 Managed by owner / proprietor and a few
other family members ( Generation shops)
 Local baniya / Kirana store / paanwala
 One to one rapport with customer
 Limited bargaining power with supplier
 Chain Retailer

 Two or more outlets under common

ownership
 Commonality in terms of BUYING ,
MANAGEMENT, MERCHANDISE ,
AMBIENCE ,ADVERTISING ,
PROMOTIONS
 Very high bargaining power with supplier
 City and regional preferences ignored
 Franchising
 Contractual agreement between franchiser and franchisee which allows the
franchisee to conduct business under an established name as per a particular
business format in return for a fee or a compensation .
 Such type of ownership enriches the Franchiser as the Franchisee are
entrepreneur who bring their business skills to grow the business of Franchisers.
 Ineffective / Bad Franchisee may harm the reputation of the Franchiser
 Such a system does not allow Territorial exclusivity .
 BASIC FORMS OF FRANCHISING

Dealer
Dealer agrees
agrees to
to sell
sell certain
certain
Product
Product and
and products
products provided
provided byby aa
Trade
Trade Name
Name manufacturer,
manufacturer, but
but can
can use
use any
any sales
sales
Franchising
Franchising tactics
tactics he
he chooses.
chooses.
Archie's
Archie's ,, Auto
Auto dealers
dealers
Dealer
Dealer must
must sell
sell the
the franchiser’s
franchiser’s
Business
Business product
product in
in the
the exact
exact way
way the
the
Format
Format franchiser
franchiser prescribes.
prescribes.
Franchising
Franchising Ex
Ex –– McDonalds,
McDonalds, Planet
Planet Fashion
Fashion
Stores
Stores
 Cooperatives

 Consumers invest in the enterprise

 Profits are distributed among the members as dividends
 Stores managed by elected officials
 Apna bazar ,Super bazar ,Kendriya bhandar ,Sahakari
bhandar
 Leased Department
 Also termed as Shop-in Shops
 A section of a space is leased to an outside party
 Retailer expands its product offering to the
customers
 Perfumes / cosmetic counters in department
stores
 The owner of leased department is responsible for
all aspects of its business and normally pays a
percentage of sales as rent .
 The store sets operating restrictions for the
leased department to ensure overall consistency
and coordination .
 CLASSIFICATION BY MERCHANDISE
Kirana Store

Convenience
ConvenienceStores
Stores

Supermarkets
Supermarkets

Departmental
DepartmentalStores
Stores

Hypermarkets
Hypermarkets

Specialty
SpecialtyStores
Stores

Category
Category Killers
Killers

Catalogue
Catalogue Retailing
Retailing

Warehouse Clubs
 Kirana Stores
 Neighborhood / residential areas /
Independent retailers
 Food oriented
 Eased / personalized/ emergency
purchase
 2-3 times a week
 Convenience products
 Open for long hours
 Home delivery and monthly credit
 Convenience stores

 Food oriented store open for long hours

 Moderate number of items (more than kirana )
 The store size is relatively larger than kirana and provides better
customer service in terms of ambience ,packaging , presentation and
quality.
 Prices are not as competitive as other formats like supermarket but
certainly competitive than the Kirana stores.
 The ease of shopping at convenience store in terms of time and
impersonal nature of supermarket makes these stores more appealing
 According to FMI : A small local store selling mostly grocery , open
until late at night or even 24 hours a day and is abbreviated as c store.
 HP Speed mart, In and Out
 The store size is 3000-8000 sq ft
 Supermarkets
 Stores offering food and groceries and limited
range of general merchandise i.e. health and
beauty aids , gift items .
 Large stores ,low cost , low margin , high volume
 85% food and grocery items
 Impulse buying
 8000-20000 sq ft
 Nigiris , Foodworld, Subhiksa , Food Bazar ,
Spencers, Spinach ,more , Reliance fresh
 Superstores
 The expanded supermarket with
merged drug stores / general
merchandise but still dominated by
food and grocery item
 30,000-50,000 sq.ft
 20-25% general merchandise
 Combination Store
 Superstores +full line pharmacy
(general merchandise /health and
beauty care/pharmacy accounts for
40% of sales)
 Upto 1lakh sq.ft
 Departmental Store
 Large stores selling several product lines with each
operating as a department under one roof.
 Product mix is largely non food like apparel , accessories
,books , music , footwear .
 20000- 40000 sq. ft.
 Target customers are not price conscious
 Ambience / VM plays important role.
 National brands as well private labels
 Merchandise return policy and loyalty programs
 Anchors in a shopping mall
 They help in attracting high traffic
 30% conversion rates
 Atleast 50 employees
 50000- 100000 SKU’s
 Shopper’s Stop , Pantaloon , Lifestyle , Westside , Globus
 Hypermarkets
 Derived from the French word Hypermarche
which is a combination of a supermarket and a
department store .
 Also termed as supercentres.
 Carrefour started first hypermarket in 1963
 A store with 80000-2,20000 sqft. with at least
35% of selling space devoted to non grocery
product like clothes , jewellery , hardware ,
sports equipment , books , CD’S /DVD’S ,
Video’s , TV , electric equipments .
 One stop shopping
 Big Bazaar , Star India Bazaar , Hypercity , vishal
megamart, Spencers
 Specialty Store
 A retail store specializing in a particular type of
merchandise or single product line with deep
assortments in that product line

 Such business model is characterized by high

level of customer service or product information

 Concentrate on apparel , jewellery ,drugs, fabrics

, sporting goods , Car / Scooters , furniture etc.

 8000 sq.ft.
 Reliance Trends ,Reliance footprints ,Reliance
digital,Reliance wellness , Proline fitness centre ,
Croma , Kings electronics , Health and Glow ,
Crossword,Car dealers
 Category Killers

 A specialty retailer who offers a very large

selection in the chosen product category
and economical prices
 Focus on one product category, they stock
deep , dominate the product category
 20,000-1,20,000 sq.ft.
 Nalli,s sarees, The loft, Toys Kemp
 Catalogue Retailers

 A retail outlet selling durable

products and other high mark-up
merchandise from a catalogue.
 BUYER'S choose items from the
catalogue and complete an order
form which is then processed in –
store .
 Warehouse Clubs

 A limited-service merchant
wholesaler that sells appliances,
household items, and groceries on a
cash-and-carry basis to members,
usually small businesses and groups.

 Metro cash and carry , Shoprite

 Others---

 Factory outlet /Discount stores

 Single price stores
 Flea Market
 Retail Formats in India
Format Examples
Convenience store Stores in petrol pumps like HP Speed mart, In and Out.
Supermarkets Nigiris , Foodworld, Subhiksa , Food Bazar , Spencers,
Spinach ,more , Reliance fresh
Departmental Shopper’s Stop , Pantaloon , Lifestyle , Westside , Globus .
Stores
Hypermarket Big Bazaar , Star India Bazaar , Hypercity , vishal
megamart, Spencers
Specialty Stores Reliance Trends ,Reliance footprints ,Reliance
digital,Reliance wellness , Proline fitness centre , Croma ,
Kings electronics , Health and Glow , Crossword
Category Killers Nalli,s sarees, The loft, Toys Kemp

Catalogue Retailing Burlingtons

Warehouse Clubs Metro cash and carry , Shoprite

Discount stores Max ,Brand factory ,Megamart , Promart

,, The loot , TruMart
Non store-based Retail Formats
Direct Selling
Street Peddling
Interactive TV
Mail-Order
Internet
Automated Merchandising Systems
 Service
 Banks
 Hotels
 Hospitals
 Education
 Airlines
 Car Rentals
 Housekeeping