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ASSIGNMENT – 1

The types of retailers and their advantages in the market are:

1) Departmental Store: This type of retailer is often the most complex offering a wide
range of products and can appear as a collection of smaller retail stores managed by one
company. The department store retailers offer products at various pricing levels.
Merchandise available: Electronic Appliances, Apparels, Jewellery, Toiletries
Advantages: A wide variety of customers come in this segment, huge margins and
schemes retailers sometimes give discount of their own
Disadvantages: Shifting focus on rice from customers, giving away a wrong message
Examples: Shopper’s Stop, Pantaloons, Max.

2) Supermarkets: This type of retailer concentrates in supplying a range of food and


beverage products. However many have now diversified and supply products from the
home, fashion and electrical products markets too
Merchandise available: Almost same as department store but at a cheaper price.
Advantages: Big discount, Bulk purchase at low rates, wide variety of FMCG and
garment options available under one roof.
Disadvantages: Huge floor area required for operations, Product information rich type of
products available.\
Examples: D-Mart, Big-Bazaar, Spencers

3) Warehouse retailers: This type of retailer is usually situated in retail or Business Park
and where premises rents are lower. This enables this type of retailer to stock, display and
retail a large variety of good at very competitive prices.
Merchandise available: Normal stock but in large packing and volume, packed for selling
to vendors
Advantages: Sells to small and medium scale business in small amount, many items from
different manufacturers
Disadvantages: No small type of inventory available, only targeted for re-sellers and
small business operators
Examples: Metro cash and Carry, Sam’s Club.

4) Specialty retailers: They specialize in specific industries or products; this type of retailer
is able to offer the customer expert knowledge and a high level of service.
Merchandise available: Specialty goods. Eg: Reebok merchandise is only available in
Reebok stores and nowhere else.
Advantages: Specialty stores are high in specific product knowledge, high level of
service and product quality.
Disadvantages: Lacks variety, high prices.
Examples: Tanishq, Haldiram Bhujiawala(selling only namkeen product off their product
portfolio).

5) E-Commerce store: This type of retailer enables customers to shop on-line via the
internet and buy products which are then delivered. This type of retailer is highly
convenient and is able to supply a wider geographic customer base
Merchandise available: Amazon, Flipkart, Myntra
Advantages: Saves a lot of cost in supply chain, wide product variety.
Disadvantages: Issue regarding delivery and refund, unsure about quality.

6) Convenience retailers (Kirana Stores): Located in residential areas this type of retailer
offers a limited range of products at premium prices due to the added value of
convenience.
Merchandise available: Eggs, Bread, Stationery, Toys, Cereals, Pulses
Advantages: Everyday goods available, fast moving goods available.
Disadvantages: Lack of proper inventory management, damaged or expiry date goods
Examples: Eazy Day, 7-Eleven

7) Malls: Many retail stores operating at one place form a mall. A mall would consist of
several retail outlets each selling their own merchandise but at a common platform.
Merchandise available: Wide variety of goods in different weight packing.
Advantages: Common platform for all items, goods both in high and low range available.
Disadvantages: Huge waste of resources
Examples: Shipra mall, DLF mall

Submitted by:
Deepan Roy
JN180047

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