department stores are distinguished by the nature of goods sold by them, not by the variety of goods sold by them like drug and variety store. Best Tips to Master Charisma Skills, Etiquette: Meaning, Types, Benefits and Basic Rules. (adsbygoogle = window.adsbygoogle || []).push({}); Retail Store | Meaning | Types of Retail Stores, Selling below cost of production | Reason | Market conditions, Patronage Buying Motives of Consumers | Emotional & Rational, Advantages and Disadvantages of Online Shopping, Advantages and disadvantages of a marketing strategy, Classification of products | Types | Categories, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. Retailing includes all the activities involved in selling of goods or services directly to final consumer for personal, non-business use – Philip Kotler. Major types of Retail Operations. The department store retailers offer products at various pricing levels. The role of the retailer in the distribution channel, Different classifications of department stores, What is Charisma? These types of stores are sometimes referred to as. The 7 main types of retailers are; Department 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. this store sells branded clothes. In addition to replenishment cost, there are other costs of repairs and maintenance. The latest trend in department stores is to add departments for sports and recreational equipment and automotive along with providing services like travel advice, insurances, and income tax preparations, etc. Franchising business exists for various products like automobiles and parts, soft drinks, dry cleaning, and business services, etc. The number of distinct goods or service product lines that a retailer carries is referred to as. Off price retailers may be of three types. Direct marketing can be of two types such as general merchandise firms which offers various types of products and other is specialty firms which offers one of two lines of products for example Beauty and books. It consists of cold canvassing from a phone directory. This kind of e-retailing system permits two way interactions and consists of promotional touch screen booths or internet and kiosks for components such as holiday or airline bookings. in addition to this, department stores buy directly from the manufacturer therefore, it eliminates any middleman charges results in high profits. The retail store which is made of brick and mortar irrespective of its size and shape can be categorized as a national chain store, regional chain store, or a franchise. Let's stay in touch :), Your email address will not be published. Retail is a term which covers a vast range of business types and models. Products from well-known brands and those have great turn-over are usually sold through automatic vending machines. The supplies are stocked in chain stores are provided by one or more warehouses owned by the chain store owner. Hence, these are not much beneficial for the customers as they have to buy urgently required goods from the nearby traders. These companies market various types of product through direct selling. In this format of retailing, a chain store consists of four or more stores sell the same kind of merchandises and are owned and managed by a single owner. Chain stores work on the basis of “Centralized buying with decentralized selling”. The word retail is derived from French words “re” and “tailer” whose meaning is to “cut again”. Guide. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, 12 Types of Retail Formats – Formats of Retailing, 11 Disadvantages Of Franchising - Cons Of Franchising To Your Business, Merchandising: Types, Advantages, and Disadvantages of Merchandising, The 7 Important Steps Retail Planning Process you Should know, What is Retailing? The difference can be made on the basis of the shapes and sizes of the retail stores. sometimes, online marketing proves to be expensive and unprofitable because of the offers and discount offered by online marketers. No need to look for costly and centralized locations. A discount store sells standard merchandise at lower prices. When one or more shops are run under one name are called chain stores. Secure enough capital to buy a franchise because it is usually expensive. In this way, quality goods can be purchased on much cheaper rates and also merchandise of the latest style and design can be obtained to be sold in stores. It is relatively small. There is no building to display products. Commence physical movement and storage of goods. Bulk display and minimum handling by store personnel are the other features present in the hyper markets. Bear in mind that you will be supervised and you will be required to take orders to run your business in a particular way. Therefore, it has a poor bad image. Retail stores are also referred to as stores or shops. The cost of selling through telephone has reduced drastically after the introduction of computers, as computers can dial automatically, deliver recorded messages, and even record information provided by the buyer. On the other hand, Kmart sells clothes from different brands but it does not have a various variety of clothes of all brands. Customers can contact salesperson personally and can buy the product from the comfort of their home or at the non-store location. Chain stores do not provide facilities like Door delivery and credit facility. These stores are large in size, open for public and advertised heavily. The prices charged are slightly higher. Some systems can describe the product in use. This type of stores usually faces tough competition from big well-established businesses who can lure customers to buy more with their heavy advertising and marketing methods. Here are the types of retailing that exists today – 1. Retail Marketing Mix and the 7 P's of the Retail Mix, Complete History of Retail Industry and the Future of Retail Industry, What is Retail Shelving? The total volume of direct selling has been growing in India since the beginning of the 21st century. This retail format is known as “Chain Stores” in America and known as “Multiple Shops” in Europe. These were all the Formats of Retail stores or Retail Formats. 6. One of the reasons the retail industry is so large and powerful is its diversity. Its operation is low cost, low margin, high volume and self service in nature. Direct marketing is a way of contacting customers through broadcasting or print media. An off-price retailer sells left over goods, over runs, and irregulars obtained at reduced prices from manufactures or other retailers. Hyper markets originated in France. Specialty stores are small in size and they generally offer limited products categories but provides a high level of service. Merchandises are arranged in different departments in the same store.