4-retail classification ver2.0

8/6/2019 4-Retail Classification Ver2.0

http://slidepdf.com/reader/full/4-retail-classification-ver20 1/31

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



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.



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



L argest US Franchisers

McDonald¶sSubway sandwichesBurger KingStarbucks

Taco Bell



Store based Classification

Department Stores Specialty Stores

Supermarkets

Drugstores Convenience Stores

Discount Stores

Restaurants



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



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.



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.



Category killers



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.



A store that primarily sells OTC pharmacy products, HBC products and has an in-house pharmacy.

Drug Stores



Interior of Drugstore



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



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.



Family Dollar inner view



Categories of Discount Stores

Categories of Categories of DiscountDiscountStoresStores

Full-Line

Discounters

Discount Specialty Stores

Warehouse Clubs

Off- P riceDiscount Retailers



sells packaged and bulk foods and general merchandise

Wholesale Club



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.



4 . Classification on the basis of PriceH igh End retail storesL ow End retail stores



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



Mass Merchandising

Retailing Strategy usingmoderate to low prices

on large quantities of merchandiseand lower service

to stimulate high turnover of products .



N on- Store Classification

Non StoreMail Orders

Catalogue

Teleshopping

e-tailing

Call Centers

Direct Selling

Store



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



Vending Machine ± self-serving



N on-Store Retailers



Recap

Chain storesFranchisesDepartment storesSpeciality storesSupermarketsDrug storesConvenience stores

Discount storesCategory killers

H yper marketsSupercentresDirect MarketingElectronic retailingOTCH BCFlagship store



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 .

4-retail classification ver2.0

Documents