RETAIL FORMATS CLASSIFICATION
Ownership
• Store based Retail Strategy mix
• Non-store based retail strategy mix
Formats by Ownership
• Independently owned –owns only one unit.
• Chain-owned-operates multiple outlets under a common ownership and usually has some level of centralized purchasing and decision making.
• Franchise-operated- involves a contractual arrangement between a franchiser and a retail franchisee, allowing the franchisee to conduct
business under the franchiser's name according to a given pattern of business.
• Leased Departments- a department in a retail store, that is rented to an outside party
• Owned by manufacturers
Formats by Store based Retail Strategy mix
• Stores use the following aspects of strategy to differentiate themselves
– Price: Very low/ low/ competitive/ average/ above average
– Location: Neighborhood/ shopping centre close by/ isolated site/ business district/ out-of the –way site
– Merchandise: Width Vs depth, Average vs. good quality, brands vs. no brands/private brands of merchandise, full selection vs specialty merchandise
– Atmosphere and Services: Very Low/Low / Average/ good/ excellent
• Convenience store: is usually a food oriented retailer that is well located, open long hours and carries a moderate number of items. Is small, has average to above average prices, average atmosphere and customer services.
• Conventional supermarket: Is a self service food store with grocery, meat and produce departments. Has a wide range of food and related products
• Food-based superstore: is a variation of a supermarket, but larger and more diversified.
• Combination store: This unites a supermarket and general merchandise sales in one facility . They are very large 30,000 to 1,00,000 sq ft, have high operating efficiencies
• Hypermarket or super center: is a variation of the combination store, but also has a discount format combined with the supermarket format. Very large store of 75,000 to 1,50,000 sq ft
• Box(Limited-line) store: A food based discounter that focuses on a small selection of items, moderate hours of operation, few services and limited manufacturer brands. Services are very low.
• Warehouse store: Is a food-based discounter offering a moderate number of food items in a no-frills setting. They concentrate on special purchases of manufactured brands. Located in secondary sites, provide little service.
• Specialty store: this concentrates on selling one goods or services line, such as apparel and accessories, toys, furniture etc. They carry a narrow, deep assortment of merchandise in their own category.
• Category killer: This is a type of specialty store, which features an enormous selection in its product category and relatively low prices, e.g.. Toys’ R” Us, Barnes and Noble etc.
• Traditional department store: Is a large retail unit with an extensive assortment of goods and services that are organized into separate departments for purposes of buying, promotion, service and control. Has a great selection of general merchandise and is often the anchor store in a shopping center or district, and is usually part of a chain. Pricing is moderate to above average, service levels are medium to high.
• Full-line discount store:Has an image of high volume, low cost fast turnover outlet selling a broad merchandise assortment for less than conventional prices, less fashion oriented, having a centralised checkout system.
• Off-price chain:features brand name apparel and accessories, footwear, linen, fabrics cosmetics and sells them at everyday low prices in an efficient, limited service environment. Carry merchandise similar to traditional department stores but priced 40-50 percent lower, Low service such as centralized checkouts, no gift wrapping etc. They depend on their ability to buy opportunistically
• Factory outlet: Is a manufacturer owned store selling manufacturer closeouts, discontinued merchandise, irregulars, cancelled orders and sometimes in season first quality merchandise
• Membership club: appeals to price conscious customers who must be
members to shop here. It is positioned between wholesaling and retailing.
Members pay a nominal membership fee and buy at wholesale prices.
Non-store based nontraditional
retail formats
• Direct Marketing: a form of retailing where a customer is first exposed to a good or service through a non-personal medium (such as direct mail, broadcast or cable TV, radio, magazine, newspaper ) and then orders by mail, phone and computer.
• Direct selling: Includes both personal contact with customer in their homes (and other non-store locations) such as offices, and phone solicitations by the retailer. E.g.. Vacuum cleaners, cosmetics, magazines, newspapers household goods etc.
• Vending machine: A retailing format involving the coin or card operated dispensing of goods and services, such a tea/coffee. Eliminates the use of sales people and allows for round-the-clock sales .
• World wide web: Selling through the online interactive retailing using the Internet and the world wide web. Also called the click and mortar format
Other emerging formats
• Video Kiosks- free standing interactive electronic computer terminal that displays products and related information on a video screen and often uses a touch screen for consumers to make selections. Consumers can place orders, complete transactions through a credit card and arrange for products to be shipped.
• Airport retailing-now airports have full blown shopping areas and there is a huge emerging potential for this type of retailing
• Store based Retail Strategy mix
• Non-store based retail strategy mix
Formats by Ownership
• Independently owned –owns only one unit.
• Chain-owned-operates multiple outlets under a common ownership and usually has some level of centralized purchasing and decision making.
• Franchise-operated- involves a contractual arrangement between a franchiser and a retail franchisee, allowing the franchisee to conduct
business under the franchiser's name according to a given pattern of business.
• Leased Departments- a department in a retail store, that is rented to an outside party
• Owned by manufacturers
Formats by Store based Retail Strategy mix
• Stores use the following aspects of strategy to differentiate themselves
– Price: Very low/ low/ competitive/ average/ above average
– Location: Neighborhood/ shopping centre close by/ isolated site/ business district/ out-of the –way site
– Merchandise: Width Vs depth, Average vs. good quality, brands vs. no brands/private brands of merchandise, full selection vs specialty merchandise
– Atmosphere and Services: Very Low/Low / Average/ good/ excellent
• Convenience store: is usually a food oriented retailer that is well located, open long hours and carries a moderate number of items. Is small, has average to above average prices, average atmosphere and customer services.
• Conventional supermarket: Is a self service food store with grocery, meat and produce departments. Has a wide range of food and related products
• Food-based superstore: is a variation of a supermarket, but larger and more diversified.
• Combination store: This unites a supermarket and general merchandise sales in one facility . They are very large 30,000 to 1,00,000 sq ft, have high operating efficiencies
• Hypermarket or super center: is a variation of the combination store, but also has a discount format combined with the supermarket format. Very large store of 75,000 to 1,50,000 sq ft
• Box(Limited-line) store: A food based discounter that focuses on a small selection of items, moderate hours of operation, few services and limited manufacturer brands. Services are very low.
• Warehouse store: Is a food-based discounter offering a moderate number of food items in a no-frills setting. They concentrate on special purchases of manufactured brands. Located in secondary sites, provide little service.
• Specialty store: this concentrates on selling one goods or services line, such as apparel and accessories, toys, furniture etc. They carry a narrow, deep assortment of merchandise in their own category.
• Category killer: This is a type of specialty store, which features an enormous selection in its product category and relatively low prices, e.g.. Toys’ R” Us, Barnes and Noble etc.
• Traditional department store: Is a large retail unit with an extensive assortment of goods and services that are organized into separate departments for purposes of buying, promotion, service and control. Has a great selection of general merchandise and is often the anchor store in a shopping center or district, and is usually part of a chain. Pricing is moderate to above average, service levels are medium to high.
• Full-line discount store:Has an image of high volume, low cost fast turnover outlet selling a broad merchandise assortment for less than conventional prices, less fashion oriented, having a centralised checkout system.
• Off-price chain:features brand name apparel and accessories, footwear, linen, fabrics cosmetics and sells them at everyday low prices in an efficient, limited service environment. Carry merchandise similar to traditional department stores but priced 40-50 percent lower, Low service such as centralized checkouts, no gift wrapping etc. They depend on their ability to buy opportunistically
• Factory outlet: Is a manufacturer owned store selling manufacturer closeouts, discontinued merchandise, irregulars, cancelled orders and sometimes in season first quality merchandise
• Membership club: appeals to price conscious customers who must be
members to shop here. It is positioned between wholesaling and retailing.
Members pay a nominal membership fee and buy at wholesale prices.
Non-store based nontraditional
retail formats
• Direct Marketing: a form of retailing where a customer is first exposed to a good or service through a non-personal medium (such as direct mail, broadcast or cable TV, radio, magazine, newspaper ) and then orders by mail, phone and computer.
• Direct selling: Includes both personal contact with customer in their homes (and other non-store locations) such as offices, and phone solicitations by the retailer. E.g.. Vacuum cleaners, cosmetics, magazines, newspapers household goods etc.
• Vending machine: A retailing format involving the coin or card operated dispensing of goods and services, such a tea/coffee. Eliminates the use of sales people and allows for round-the-clock sales .
• World wide web: Selling through the online interactive retailing using the Internet and the world wide web. Also called the click and mortar format
Other emerging formats
• Video Kiosks- free standing interactive electronic computer terminal that displays products and related information on a video screen and often uses a touch screen for consumers to make selections. Consumers can place orders, complete transactions through a credit card and arrange for products to be shipped.
• Airport retailing-now airports have full blown shopping areas and there is a huge emerging potential for this type of retailing