Classification

ClassificationofofRetail
RetailFormats
Formats
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By:
Bhukya Praveen Naik

FLOW OF PRESENTATIOS

WHAT IS RETAIL?

WHO ARE RETAILERS?

WHAT IS RETAIL FORMAT

CLASSIFICATION OF RETAIL FORMATS

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RETAIL
Retailis the sale of goods and services from individuals or
businessestotheend-users.

RETAILER
Retailers are part of an integrated system called the supply
chain.
RETAILING
MARKTING

MERCHANDISING

SUPPLY CHAIN
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RETAIL FORMAT

TheRetailformatisthestorepackagethattheretailer
presentstotheshopper.
Thechoiceofretailmixelementswillenableittodecide
thetypeofformatorstructureofbusiness.
Merchandise
Price

RETAIL
MIX
Location

Customer
Service &
Selling

Advertising
&
Promotion

Store Layout
&
Design

CLASSIFICATI
ON
OF
RETAIL
FORMATS

Classification of Retail Formats

Store Based Retailing

Owner Ship
Independent
Chain Retail
Franchise
Leased Department
Consumer Cooperative
Retail Strategy Mix
Convenience
Super Markets
Departmental Stores
Hyper Market
Shopping Malls
Specialty Stores
Factory Out Lets

Non Store Based

Retailing

Direct Selling
Catalogue Selling
Television Shopping
Vending Machine
Electronic Shopping

Peddler & Hawkars

Market Traders
Street Traders
Cheap Jacks

Service Based
Retailing

Bank
Car Rental
Services

Store Based Retailing

Owner ship
Independent Retail
Chain Retail
Franchise Retail
Lease Departments
Consumer Cooperative
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INDEPENDENT RETAILER

An independent retailer is one who owns and operates

onlyoneretailoutlet.
Theytargetsmallerconsumersegmentsratherthenmass
market.

+They have low investments in terms of lease, fixtures,

workersandmerchandise.
-Theyhavelimitedbargainingpowerwithsuppliersasthey
oftenbuyinsmallquantities.
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INDEPENDENTRETAILERS

GENERAL STORES

CHAIN RETAIL

Whentwoormoreoutletsareunderacommonownership,
itiscalledaRETAILCHAIN.
These stores havethe similarmerchandise, ambience
,advertisingandpromotiontocustomerinallstores.

+They enjoy strong bargaining power with suppliers due to

thevolumesofpurchases.
-Chain retailers have high investments in multiple leases,
fixtures,productassortmentsandemployees

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CHAIN RETAIL FORMAT

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FRANCHISE RETAIL

Franchising is a contractual agreement between a

franchiserandafranchiseethatallowsthefranchiseeto
operatearetailoutletusinganameandformatdeveloped
andsupportedbythefranchiser.
There are two types of franchising: product/ trademark
andbusinessformat.
Aproductor trademarkfranchise-wherethefranchisee
sells the products of the franchiser operating under the
franchisersnameeg:Archies
AbusinessformatfranchiseMcdonalds.
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+Your chances of success are greatly increased due to

aligningyourselfwithprovenproductsandmethod.
-Youmustpayongoingroyaltiesandadvertisingfeesalong
withtheinitialfranchisefee.

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LEASED DEPARTMENT RETAIL

Leased Department arealsotermedasshopinshops.

Whenasectionofadepartmentinaretailstoreisrented
toanoutsideparty,itistermedasaleaseddepartment.

+Themarketisenlargedbyprovidingone-stopcustomer
shoppingforsomecustomers.
-Leased department operating procedures may conflict
withstoreprocedures

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Leased Department Formats

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CONSUMER CO-OPERATIVE
Aconsumerco-operativeisaretailinstitutionownedby
itsmembercustomer.
+Theconsumersareprotectedagainstunfairtradebecause
thestorespurchasequalityproductsdirectlyfromthe
producers.
-Thestoresareestablishedtocatertheneedsofsmall
mediumincomegrouppeople.

Waranabazar-Kohlapur-55branches
TheNationalCooperativeConsumersFederationof
IndiaLimited(NCCF)-Delhi-34branched

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Store Based Retailing

Retail Strategy Mix
Convenience Stores
Super Markets
Departmental Stores
Hyper market
Shopping Malls
Specialty Store
Factory out lets

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CONVENIENCE STORES
They are relatively small stores located near residential
areas.
They are open for long hours, seven days a week and
offer a limited line of convenience products like bread,
eggs,milketc.
+locatednearbyresidentialareas.
-Theconveniencestoresfacemostcompetitionfrom
supermarketsthathavestartedprovidinglongerhours
andbetterstocksofnon-fooditems.

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CONVENIENCE STORES

KIRANA STORES

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SUPER MARKETS

LargeformofthetraditionalgroceryStore,isaselfserviceshopofferingawidevarietyoffoodand
householdproducts.

+Theyarelarge,lowcost,lowmargin,highvolume,
selfservice,operationsdesignedtomeettheneedsfor
food,groceries&othernonfooditems.
-Supermarketarelargeandhencerequireshugefinancial
resources.

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Super Markets

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DEPARTMENTAL STORES

Adepartmentstoreisalargeretailunitwithanextensive
assortment(widthanddepth)ofgoodsandservicesthat
are organized into separate departments for purposes of
buying,promotion,customerserviceandcontrol.

Adepartmentalstorecanaffordtoadvertiseonlargescale
andtherebyattractsalargenumberofcustomers.

-Peoplelivingatadistantplacecannotavailtheadvantages
of departmental store because these are located at a
centralofthecities.

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DEPARTMENTAL STORES

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HYPERMARKETS

Hyper markets are a combination of super markets and

departmentalstores.
Aretailstorewithasalesareaofover2500squaremeter,
withatleast35percentofsellingspacedevotedtonongrocery products like clothes, jeweler, hardware etc. are
calledhypermarkets.

+Hypermarketstodayarelikeonestopshop.
-The main limitation of hypermarkets is that many
consumers find that shopping in stores over
200,000squarefeetistootimeconsuming.

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Hyper Market

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SHOPPING MALLS

Ashopping mallhas a range of retail shops at a single

outlet. They can include products, food and
entertainmentunderoneroof.

+Onestopshoppingdestination.
-Impulsebuying

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FACTORY OUT LETS

A Retail store that sells discounted price items that are
irregular, outdated or have been produced in excess
quantities
+productsarealwaysindiscountprices
-Themerchandisemaybeinoddsizes,unpopularcolorsor
withminordefects.

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SPECIALITY STORES

Astoresspecializinginaparticulartypeofmerchandise
or single product goods categories is termed as a
specialtystore.

Oneofthekeybenefitsofaspecialtystoreisitsfocuson
asingleclassofproducts.
-specialtystoreslackvariety.
+

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NON STORE BASED RETAILING

Direct Selling
Catalogue Selling
Television Shopping
Vending Machine
Electronic Shopping

Peddler & Hawkers

Market Traders
Street Traders
Cheap jacks
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NON STORE BASED RETAILING

DIRECT SELLING

CATALOGUR SELLING

Directselling
involves
makingpersonal
contact
with the end customer , at
hishomeorplaceofwork
Eg:Amway

This form of retailing

eliminates personal selling
and store operationsas
customer order by seeing
catalogue

Television Shopping
In this form ofretailing ,
the products are advertised
on television and details
about the productfeatures ,
price, warranty /guarantee
areexplained.
Eg:AsianSkyshop

Vending Machine:
Vending machine is a
retailing format involving
the coin or card operated
dispensing of goods (such
asbeverages)andservices.
Eg:ATM

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Electronic Retailing

Electronic retailing (also called e-tailing and Internet

retailing) is a retail format in which the retailer and
customer communicate which each other through an
interactiveelectronicnetwork.

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1. Peddler & hawkers

2. Market Traders
3. Street Traders
4. Cheap jacks
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Service Retailing

Service retail involves the retail of various services to

theendcustomer.
Retail banking containingfunctionslikeloanservices,
creditcardservices.Car rentals -Providerstransportfacilitiestocustomers
Service Contracts: Provide various services like
electricity,gas,water,computersystems,etc

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Conclusion

Emerging retail formats offer an ideal shopping

experiencetocustomerwithallneedunderoneroof.

The hypermarkets, malls, supermarkets are the preferred

kindofstoresbyconsumers.

The dynamics of the demographics, double income,

urbanization and internet revolution are the factors
contributingtoretailgrowthinIndia

Youngergenerationprefertovisitmallsandhypermarkets
moreforstressrelievingpurpose

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Questions

Thank
You

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