Types of Retailer in detail

1. Presented by
Manish Balpande

2.  Type of merchandise sold
 Variety and assortment of merchandise
 Level of customer service
 Price of the merchandise

3.  Variety is the number of different merchandise
categories a retailer offers (breadth).
 Assortment is the number of different items in
a merchandise category (depth)
 Each different item of merchandise is called a
stock keeping unit (SKU).

4.  Customers expect retailers to provide some
services--accepting credit cards, proving
parking, and displaying merchandise.
 Some retailers go beyond this and provide
other services such as gift wrapping and home
delivery, at a charge.

5.  Offering more depth and breadth of
merchandise is appealing to customers.
 Offering services attracts customers.
 To make a profit with more depth and breadth
or services retailers must charge higher prices.

6.  Conventional Supermarket
 Limited Assortment Supermarket
 Supercenter
 Warehouse Club
 Convenience Store

8.  Self-service
 Offer
 Groceries
 Meat
 Produce Limited non-food items

9.  Fastest growing sector of food retailer.
 150,000 to 200,000 sq. ft. stores that combine a
superstore and a full-line discount store.
 Sell groceries at low prices to build store traffic.
 One stop shopping

10.  Large ( about 100,000 sq. ft.) and located in low
rent districts.
 Little service at low prices to ultimate
consumers and small businesses.
 Reduce costs by carrying a limited assortment
of fast-selling items.
 Members must pay an annual fee

11.  Modern versions of the neighborhood mom-
and pop stores.
 Convenient location in a 2,000 to 3,000 sq. ft.
store with a speedy checkout.
 Limited variety and assortment of
merchandise.

12.  Department stores
 Full-line discount stores
 Specialty stores
 Drug stores
 Category specialists
 Extreme Value Retailers
 Off-price retailers
 Home Improvement Centers

13. Type Variety Assortment Service Prices Size
(000 sq. ft.)
Location
Department
Stores
Broad Deep to average Average to low Average to low 100-200 Regional malls
Discount Stores Broad Average to
shallow
Low Low 60-80 Stand alone,
power strip
centers
Specialty Stores Narrow Deep High High 4-12 Regional malls
Category
Specialists
Narrow Very deep Low to high Low 50-120 Stand alone,
power strip
centers
Home
Improvement
Centers
Narrow Very deep Low to high Low 80-120 Stand alone,
power strip
centers
Drugstores Narrow Very deep Average Average to
high
3-15 Stand alone,
strip centers
Off-price stores Average Deep but varying Low Low 20-30 Outlet malls
Extreme value
retailers
Average Average and
varying
Low Low 7-15 Urban, strip

14.  Carry a broad variety and deep assortment
 Organized stores into distinctly separate
departments
 Offer Customer services
 It attracts consumers by offering a pleasing
ambience, attentive service and wide variety of
merchandise.
 E.g. Big Bazaar

15.  Offer a broad variety of merchandise
 Limited services
 Low prices
 Offers both private as well as national labels
 E.g. Wal-Mart, Brand Factory

16.  Concentrate on a limited number of
complementary merchandise
 Provide high level of service
 Offers deep but narrow assortment
 E.g. Apparel- Wills Lifestyle, Zodiac
Electronics- Croma, Bose

17.  Concentrate on health and personal grooming
merchandise.
 E.g. Apollo Pharmacy(Apollo hospitals group),
Dial for health(Zydus Cadilla)

18.  Big box discount stores
 Offer narrow but deep assortment
 Low price
 They are also called as category killers
 E.g. Apparel – Pantaloons
Books – Odyssey

19.  Small, full line discount stores
 Offers limited merchandise assortment
 Very low prices
 One of the fastest growing segment in retailing
 Target low-income consumers, whose
shopping behavior differs from typical
discounts stores
 E.g. family Dollar and Dollar general

20.  Offer an inconsistent assortment of brand name
merchandise at low prices
 Sell brand name and even designer label
merchandise at low prices
 E.g. Brand Factory

21.  Combines the traditional hardware store and
lumberyard.
 Focuses on providing material and
information.
 Merchandise is displayed in a warehouse
atmosphere.
 Salespeople are available to assist customers in
seeking merchandise and to tell them how to
use it.

22.  Electronic Retailers
 Catalog and Direct-Mail Retailers
 Direct Selling
 Television Home Shopping
 Vending Machine Retailing

24.  Also called as e-tailing, online retailing and
internet retailing
 Retailers communicate with customers offers
products and services for sale over the internet
 E.g. Online retail banking, flipkart, eBay

25.  Catalog is a non store retail format in which the
retail offering is communicated to a customer
through a catalog
 Direct-Mail retailers communicate with their
customer using letters and brochures
 Most successful with rural consumers
 19% of US population orders merchandise or
services by mail
 E.g. JCPenney – General merchandise
Brylane – Apparel, home

26.  Direct selling is a retail format in which
salespeople, independent businesspeople,
contact customers directly in a convenient
location, either at customer’s home or at work,
demonstrate merchandise benefits and explain
service, take an order, deliver the merchandise
and perform the service
 Highly interactive form of retailing
 Face to face discussion with sale people
 E.g. Cooking and Kitchen ware
Cosmetics and fragrances

27.  Customers watch a TV program that
demonstrate merchandise and then place
orders for the merchandise by telephone
 Three forms of electronic home shopping
retailing-
1. Cable channels dedicated to television
shopping
2. Infomercials
3. Direct response advertising

28.  Direct response advertising includes
advertisement on TV and Radio that describe
products an provide an opportunity for
consumers to order them
 Infomercials are TV programs, typically 30
mins long, that mix entertainment with
product demonstrations and then solicit orders
placed by the telephone
 E.g. Home shop 18, Telebrands

29.  It is a non store format in which merchandise
or services are stored in a machine and
dispensed to customers when they deposit cash
or use the credit card
 Placed at convenient high traffic locations
 E.g. vending machine for cold beverages,
candy, snacks, coffee, ect

30. Type of Service Service Retail Firms
Airlines Air India, Indigo, Jet Airways
Automobile maintenance and
repair
Reliance AutoZone
Automobile Rental Hertz India, Eco Rent A Car, Avis India
Banks HDFC, ICICI, SBI
Child Care Centers Angel Heart, Shemrock
Credit Cards America Express, ICICI, VISA
Education Sinhgad College
Entertainment Parks Appu Ghar, Essel World
Express package delivery Blue Dart, Gati
Financial Services Reliance Money, Airtel Money
Fitness FitnessOne, Gold’s Gym
Health Care Fortis, Max

31. Type of Service Service Retail Firms
Home maintenance Unicorn Services
Hotels and Motels Taj, ITC Maurya Sheraton
Income Tax Preparation Protax
Insurance LIC
Internet access/electronic
information
Airtel, Vodafone, BSNL
Movie Theater ADLABS, PVR
Real Estate DLF, Unitech, Indiabulls
Restaurants Nirula’s, Kamat
Truck Rentals Asatguru Packers and Movers
Weight Loss VLCC
Video Rentals Movie Mart, Big Flix
Vision centers Centre for Sight, Venu Eye Institute

32.  Independent, Single-Store Establishments
 Corporate Retail Chains
 Franchising

33.  This type of retailing is owner managed, which
means management has direct contact with
customers and can respond quickly to their
needs
 They are very flexible
 React to quickly to market changes and
customers needs
 E.g. local Kirana Shop

34.  It is a company that operates multiple retail
units under common ownership
 Usually has centralized decision making for
defining and implementing its strategy
 E.g. Taj Hotels, Kamat restaurants

35.  Franchising is a contractual agreement between
a franchisor and a franchisee that allows a
franchisee to operate a retail outlet using a
name and format developed and supported by
the franchisor
 The franchisee pays a lump sum plus royalty
on all sales for the right to operate the outlet in
accordance with procedures prescribed by the
franchisor

36.  The franchisor provides assistance in locating
and building the store, developing the
products or services sold, training managers
and advertising
 To maintain each franchisee’s reputaion, the
franchisor also makes sure that all outlets
provide the same quality of services and
products
 E.g. KFC, Mc Donels, Haldiram, Dominoz
Pizza