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Retail Formats

Formats in Retailing

Retailing
Formats

Based on Based on store-based Non-store


Ownership retail mix retailing
Formats in Retailing
Based on Ownership
 Independent - single outlet / store
 Chain - multiple outlets / stores
 Franchising - rights to use trademarks, formats &
processes
 Leased department (“shop-in-shop”) - given to outside
parties
 Vertical marketing system- more than one member of
channel owned by a single firm
 Consumer Cooperative - retail firms owned by consumers
Wheel of Retailing
Explains the Institutional changes
that take place when Innovators
enters the retail arena. (McNair,1931)
Wheel of Retailing
Low-end Strategy
 Low-prices
 Limited facilities and services
 Price-sensitive Consumers
Medium Strategy
 Moderate prices
 Improved facilities
 Broader base of value and service conscious
consumers
High-end Strategy
 High prices
 Excellent facilities and services
 Upscale consumers
Formats in Retailing
Based on Store-based Retail Mix

A. Food-oriented:
 Convenience store
 Supermarket
 Superstore
 Combination store
 Warehouse Club / Warehouse store
B. General Merchandise :
 Specialty store
 Department store
 discount store
 Variety store
 Factory outlet /Seconds outlet
 Membership club
Characteristics of Retail
Stores
Addition to
Format Location Range Food Pricing Ambience / Service
Width Depth
A. Food-oriented:
Convenience store N M L Nil M M
Supermarket N H H Nil L M
Health,
beauty ,
Gen.
Superstore S H H Merch. L M
Drugstore,
Combination store S/O H H Gen. Merch L L
Warehouse Club / Warehouse store O H H Gen. Merch L L

B. General Merchandise :
Speciality store S L H L M/H
Department store S H H M/H M/H
discount store S/O H H L M
Variety store S/O H H M L
Factory outlet /Seconds outlet O L L L L
Membership club O L L L L

Legend: N = Neighborhood, S = Shopping centre, O =Outskirts , H = High, M = Medium , L = Low


Formats in Retailing
- Non store

Types:
•Direct Selling - word -of-mouth / person-to-person
•Direct Marketing - on Mail, phone, fax or computer
•Electronic / Internet Retailing - on the Internet
•Vending machines / kiosks - through machines, non-personal
Other Classification
All
the formats are
broadly Classified as under

Value Retailing Lifestyle


Retailing

Discount Stores Department Stores


Hypermarket Specialty Stores
•Independent of •Driven by purchasing power
growth in purchasing power Growth
•Prominent during initial •Driven by Lifestyle aspirations
stages of Organized retailing and changing consumer mindset
Status of Formats in India
Dollar Store – A Snap shot
 17 Physical Stores in India
Product Categories
House wares Kitchenware
Flowers Stationery
Gift items Partysupplies
Apparel Health & Beauty
Candles Seasonal
Office supplies Food
Automotive Electronic & Hardware
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