Types of Retailing on the basis of ownership, size operation and product line
- 1. Retailing refers to the process of selling goods and services directly to consumers for their personal use or consumption. It involves a variety of activities, including the selection, marketing, and distribution of products, with the goal of meeting customer needs and generating profits for the retailer. Retailing can take place through various channels, including physical stores, online platforms, or direct sales. RETAILING
- 3. SMALL SCALE RETAILER LARGE SCALE RETAILER Key Features of Small Retailers: Limited Scale: They operate on a smaller scale in terms of store size, inventory, and geographic reach. Localized Market: Usually target a specific, local customer base or a niche market. Personalized Service: Small retailers often provide a higher level of personalized customer service, building strong relationships with their customers. Limited Product Range: Their product assortment is usually smaller and more focused compared to larger stores or chains. Ownership and Control: Many small retailers are independently owned and managed, giving owners greater control over operations and customer engagement. Key Features of Large-Scale Retailers: Wide Geographical Reach: Large-scale retailers often operate numerous stores in various locations, including different cities, regions, or even countries. Extensive Product Assortment: They offer a wide range of products across many categories, such as clothing, electronics, groceries, and home goods. High Volume of Sales: They focus on high turnover and can sell large quantities of products, often benefiting from economies of scale. Standardized Operations: These retailers typically have centralized decision-making, uniform pricing, and consistent policies across their outlets. Brand Recognition: Large-scale retailers often have significant brand power and are well- known nationally or internationally. Advanced Technology & Logistics: They often use sophisticated inventory management, supply chain systems, and marketing strategies to maintain efficiency and customer engagement.
- 4. OWNERSHIP Independent Retailerst These are privately owned and operated businesses. They are typically run by individuals or families. They have full control over their business operations and decision- making. Examples: Local grocery stores, clothing boutiques, or corner shops. Chain Stores Owned and operated by a central organization or corporation. They have multiple outlets operating under the same name and format. Operations, pricing, and policies are standardized across all outlets. Examples: Khaadi, McDonald's, and Walmart. Franchise A retail model where an independent owner (franchisee) operates a store using the brand name, trademarks, and business model of an established company (franchisor). The franchisee pays fees or royalties to the franchisor in exchange for support and the right to use the brand. Examples: KFC, Domino's, or Subway Cooperative Retailers Owned and operated by a group of individuals or organizations who join together to serve their mutual interests. The members (owners) contribute capital and share profits based on their participation. Decisions are democratic, with each member typically having one vote. Their goal is often to provide goods or services at the lowest possible cost rather than maximizing profits. Examples: Consumer cooperatives like utility stores or credit unions. .
- 5. Limited line store Focus on a specific product category or line. Offer a narrow variety but a deep assortment of products. Known for expertise in their product category and personalized service. Examples: Jewelry stores, bookstores, and electronic shops like Apple Stores PRODUCT LINE Department Stores Offer a wide variety of products across different categories, all under one roof. Each product category (clothing, home goods, electronics, etc.) is treated as a separate department. Examples: Macy’s, Debenhams. Variety sores Broad Product Range: They sell a diverse assortment of goods, including household items, toys, stationery, kitchenware, personal care products, and more. Low Prices: Products are typically inexpensive and targeted at budget-conscious consumers. Limited Assortment Depth: While they offer a wide variety, they don't provide deep assortments within a specific category. Convenience: These stores are usually small to medium in size and located in accessible areas. No Frills: The focus is on practicality and affordability rather than luxurious store ambiance or premium services.
- 6. Definition A supermarket is a type of retailer primarily focused on selling a wide variety of food and household items, often on a large scale, and is typically part of the grocery retail category. Here's a breakdown of supermarkets: BY OPERATION supper market Key Features of Supermarkets: Primary Focus on Food: Supermarkets primarily offer food products, including fresh produce, dairy, meat, frozen foods, and packaged goods. They may also sell non-food items like cleaning products, toiletries, and household goods. 1. Large Scale: Supermarkets are usually medium to large- sized stores and can range from local neighborhood shops to large, sprawling stores. 2. Self-Service: Customers typically browse and pick their items themselves, with minimal assistance required. 3. Variety of Brands: Supermarkets usually carry a wide range of brands, from well-known national or international brands to private label or store brands. 4. Competitive Pricing: Supermarkets tend to offer competitive prices, and many use discounts, loyalty programs, or promotions to attract customers. 5. Frequent Visits: Due to the nature of their products, supermarkets encourage frequent shopping visits as customers need to purchase essential goods regularly. 6. Convenience: Supermarkets are often conveniently located in residential areas, city centers, or major shopping districts to make it easier for customers to shop for daily needs. 7. Global: Walmart, Tesco, Carrefour, Aldi, Safeway. Pakistan: Imtiaz Supermarket, Metro, Carrefour (Hyperstar), and other local supermarket chains. Traditional Supermarkets: These stores focus mainly on food and household products and offer a wide range of groceries. Example: Tesco, Kroger. Discount Supermarkets: Focus on low prices and offer a more limited product selection, often with fewer premium products. Example: Aldi, Lidl. Hypermarkets: These are large- scale supermarkets that also offer non-food items, like clothing, electronics, and furniture, in addition to groceries. Example: Walmart Supercenters, Carrefour Hypermarket.
- 7. CONVENIENCE STORE A convenience store is a small- scale retailer designed to provide customers with quick access to essential goods. These stores are known for their convenience, operating in highly accessible locations and offering extended hours of operation. Key Features of Convenience Stores: Limited Product Range: Convenience stores typically carry a small selection of essential items, such as snacks, beverages, toiletries, canned goods, and basic household products. 1. Small Store Size: These stores are usually smaller in size compared to supermarkets and department stores, making them ideal for quick visits. 2. Extended Hours: Many convenience stores are open 24 hours a day, seven days a week, providing customers with access to goods at any time, especially outside of regular shopping hours. 3. Location: They are often strategically located in residential areas, busy urban streets, or near gas stations, providing easy access to customers. 4. Higher Prices: Due to their location and convenience, items in convenience stores are generally priced higher than in supermarkets or large retailers. 5. Quick Service: These stores focus on offering a fast, no-frills shopping experience with minimal checkout time, allowing customers to quickly grab what they need. 6. Minimal Staffing: They typically have fewer employees compared to larger stores, relying on self-service or limited assistance. 7. Examples of Convenience Stores: Global: 7-Eleven, Circle K, FamilyMart, Wawa. Pakistan: Imtiaz Mini, 7- Eleven (in some urban areas), local corner stores. Accessibility: Conveniently located and often open late or 24/7, making them ideal for urgent needs. Speed: Customers can quickly grab items without needing to spend much time browsing or waiting in long lines. Essential Goods: Provide products that people may need on the go, such as snacks, drinks, and basic toiletries.
- 8. Display of Limited Products: Catalog showrooms typically display a limited number of products, usually the best-selling or most popular items, allowing customers to inspect the quality and design of the items in person. Catalog Orders: The majority of products are available through a catalog, and customers can place an order for items that are not available in the showroom. These items are often delivered to the customer’s home or made available for pick-up. Convenient Shopping Experience: Customers can browse a variety of products in the catalog, compare them, and then order through the showroom with assistance from sales staff. Focus on Quality over Quantity: Catalog showrooms often focus on high-quality products rather than offering a large quantity of items. DEFINITION CATALOG SHOW ROOMS A catalog showroom is a type of retail store that combines elements of both a physical showroom and a catalog-based ordering system. These stores display a limited selection of products for customers to view in person, but the majority of the products are available through catalogs or brochures, which customers can browse and order from. KEY FEATURES Global: Sears (historically), IKEA (in some markets), and certain home goods stores that focus on catalog-based sales. Pakistan: Some furniture or appliance showrooms operate with a catalog model, where customers can browse items in a showroom and place orders from a catalog. Convenience for Customers: Customers can explore products physically in the store, then easily place orders for additional items through catalogs. Cost Efficiency for Retailers: Retailers do not need to stock a large inventory of every product, reducing overhead costs. Variety without Overcrowding: Customers can access a wide range of products without the store being overwhelmed with stock. ADVANTAGES EXAMPLES
- 9. ONLINE STORES Online stores (also known as e-commerce stores) are retail platforms that operate on the internet, allowing customers to purchase products or services from the comfort of their homes or mobile devices. These stores sell a wide variety of goods, from physical products to digital content, and operate solely in the online space.
- 10. VENDING MACHINE A vending machine is a self-service retail system that dispenses products to customers automatically after they insert money or use other payment methods, such as a card or mobile payment. Vending machines are widely used for selling snacks, beverages, and other small items, offering convenience for customers looking for quick purchases.t