4-retail classification ver2.0
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8/6/2019 4-Retail Classification Ver2.0
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Forms of Organized Retailing
Retailer Types
By Format
By Ownership
Non-StoreBased
Store Based
Franchise
Corporate Chains
Independent
Virtual Stores
Big Box Stores
Convenience Stores
Super Market
Discount Stores
Department Stores
Catalog Marketing
Network Marketing
Specialty Stores
Club Store
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1. Classification of Ownership
IndependentRetailers
Chain Stores
Franchises
Mostly family owned businesses and themanaged by the owners. High flexibility,high visibility to customer butunorganised.
Multiple retail units under one companyoperates with a common objective.Economies of scale, high degree of specialization, but slow decision making.
Franchiser and Franchisee enters into anagreement, Franchisee enjoys the benefit of brand equity developed by the franchiser.
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Franchise Formats
P roduct/TrademarkFranchisee acquires theidentity of a franchisor byagreeing to sell productsand/or operate under the
franchisor name
Franchisee operatesautonomously
2/3 of retail franchisingsales
Business FormatFranchisee receivesassistance: location, qualitycontrol, accounting
systems, startup practices,management trainin
Common for restaurants,real-estate
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L argest US Franchisers
McDonald¶sSubway sandwichesBurger KingStarbucks
Taco Bell
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Store based Classification
Department Stores Specialty Stores
Supermarkets
Drugstores Convenience Stores
Discount Stores
Restaurants
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The L argest Retailers in the USA
Rank Company Main Emphasis1 Wal-Mart Full-line discount stores, supercenters,
membership clubs
2 HomeDepot
Home centers, design centers
3 Kroger Supermarkets, convenience stores, jewelry stores4 Target Full-line discount stores, supercenters
5 Costco Membership clubs
6 Albertson¶s Supermarkets, drugstores
7 Walgreens Drugstores
8 Lowe¶s Home centers
9 Sears Department stores, specialty stores
10 Safeway Supermarkets
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Specialty stores/ category killers
Specialty stores are smallstores which specialize in aspecific range of merchandiseand related items.
Most stores have an extensivewidth and depth of stock in theitem and provide high levels of service and expertise.
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Category Killer
± Toys ³R ́ Us/ Kids ³R ́ Us± Circuit City/ Radio shack ± Best Buy ± Office Depot± Staples± OfficeMax± Starbucks± PETsMart/ Petco
Home DepotPepperidge FarmsBarnes & Noble
Borders Walden BooksBlockbusterCosmetics PlusContainer Store
A dominating store format that focuses its total efforts on a limited
number of categories.
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Category killers
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H ypermarket and super center
Hypermarket
combination of =a supermarket +
department store. ( full lines of groceriesand general merchandise. ...
)
Super center Retail store combining groceries
and general merchandise goodswith a wide range of services.
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A store that primarily sells OTC pharmacy products, HBC products and has an in-house pharmacy.
Drug Stores
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Interior of Drugstore
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Convenience stores small format stores ± 1 -3000 sft area.located alongside busy roads, at gas/petrolstations or in densely-populated urbanneighborhoods.
operates at least 13 hours a day
may or may not sell gasoline
limited selection of grocery items like confectionary,snacks, tobacco products, milk and beverages
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Discount Stores
f ocuses on f ast turnover o f inexpensiveconsumables including HBC, cleaning supplies, dry f oods and candy, as well as toys,housewares, home decor, party goods, pet f oods, stationery and school supplies.
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Family Dollar inner view
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Categories of Discount Stores
Categories of Categories of DiscountDiscountStoresStores
Full-Line
Discounters
Discount Specialty Stores
Warehouse Clubs
Off- P riceDiscount Retailers
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sells packaged and bulk foods and general merchandise
Wholesale Club
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Club H ouses Club stores are similar to big box retail stores, whichoffer a wide variety of merchandise at very low price .
the customersneeds to take theannualmembership of thestore and theproducts are soldin bulk.
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4 . Classification on the basis of PriceH igh End retail storesL ow End retail stores
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Onbo
P age 24
LESS VARIETY
LOWERMARGIN
HIGHERMARGIN
LOW MARGIN&WIDE SELECTION
LOW MARGIN& NARROWSELECTION
HIGH MARGIN&
WIDE SELECTION
HIGH MARGIN& NARROWSELECTION
Hypermarket
Mass Merchandiser
Warehouse Store
LimitedAssortment
Store
CombinationStore
Superstore
Conventional Supermarket
Mom-and- P op
Specialty FoodStore
Convenience Store
Pricing Strategies
MORE VARIETY
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Mass Merchandising
Retailing Strategy usingmoderate to low prices
on large quantities of merchandiseand lower service
to stimulate high turnover of products .
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N on- Store Classification
Non StoreMail Orders
Catalogue
Teleshopping
e-tailing
Call Centers
Direct Selling
Store
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N on-Store Retailing
Major FormsMajor Formsof of
NonstoreNonstoreRetailingRetailing
a. Automatic Vending
b. Direct Marketing
c. Electronic Retailing
Telemarketing
Catalogs & Mail Order
Direct Mail
Electronic Retailing
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Vending Machine ± self-serving
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N on-Store Retailers
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Recap
Chain storesFranchisesDepartment storesSpeciality storesSupermarketsDrug storesConvenience stores
Discount storesCategory killers
H yper marketsSupercentresDirect MarketingElectronic retailingOTCH BCFlagship store
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flagship store
This is the store that holds the largestmerchandise, is a "landmark" and a symbol of theentire chain .
Example: Macy's in N ew York is a prime example . This is considered the "flagship" store, althoughthere are other Macy's all over the country .