LESSON 2 - TYPE OF RETAILERS

• Types of Retailer


  • Food Retailer
  • General Merchandise Retailers
  • Nonstore Retailers
• Food Retailers


  • Conventional supermarket
  • Supercenters
  • Warehouse Clubs
  • Convenience Stores
• General Merchandise Retailers


  • Department Stores
  • Specialty Stores
  • Category Specialists
  • Off-Price Retailers
  • Outlet stores
  • Drug stores
  • Home improvement center
• Nonstore Retailers


  • Electronic Retailing
  • Catalog and Direct-Mail Retailers
  • Direct Selling
  • Television Home Shopping
  • Vending Machine Retailing
• Service Retailing


  Firms that primarily sell services rather than merchandise, are a large and growing part of the retail industry
• Differences between Product Retailing and Service Retailing

  • Intangibility
  • Simultaneous Production and Consumption
  • Perishability
  • Inconsistency
• Quality and cost are prime factors in the success of product retailing
• Timeliness and nature of people involved in service retailing are crucial factors in the success
• Product retailer and consumer relationship is established only if the consumer frequently visits the outlet
• Service provider and customer relationship is established right from start
• Products can be stored in outlet while retailing
• Services are intangible hence cannot be stored while retailing
• Product retailing can be standardized
• Service retailing cannot be standardized as it highly depends upon the human entities involved
• In product retailing, the ownership of the purchased product can be transferred from owner to consumer after transaction
• In service retailing, there is no transfer of ownership. The consumer can only access the service
• Major Classifications of Retail Ownership

  • Independent, single-store establishments
  • Corporate Retail chains
  • Franchisees
• Independent, single-store establishments


  • Start-ups are owner-managed
  • Has direct contact with customers
  • Very flexible; react quickly to customers' needs and market changes
• Corporate Retail Chain


  • Operates multiple retail units under common ownership
  • Centralized decision making for defining and implementing strategies
• Franchising


  Contractual agreement between franchiser and a franchisee that allows franchisee operate a retail outlet using a name and a format developed and supported by the franchiser
• Retail Sectors

  • Food
  • Clothing & textile
  • Consumer durables
  • Footwear
  • Jewelry
  • Books-music-gift articles
  • Fuel