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Bases for Classification of retail Units1. Nature of ownership.

2. Operational structure.3. Length and depth of merchandise.

4. Nature of service.

5. Type of pricing policy.

6. Type of retail location.

7. Method of customer interaction.

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Nature of ownership- The threebasic legal forms of ownership are

sole proprietorship, partnership, and

limited liability company(private andpublic).

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Operational structure- The retailoperational structures can be

classified into the following three

types: the independenttrader(usually operating only one

retail outlet); the multiple or chain

store; franchising and the consumerco-operative.

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Length and depth of merchandise-

Retail units differentiate themselves onthe basis of the range and variety ofmerchandise they maintain in their

stores. Some retail businesses offer awide range of goods. On other hand,some deal only in a specific product

category with a minimum range ofmerchandise within that productcategory.

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Type of pricing policy- Some retailerschoose to emphasize the low pricerather than the service element of theirretailing mix. Others choose to price

their offerings above the competition,knowing that they will generatebusiness on the basis of some otherattribute such as convenient location,

premium merchandise mix, or distintiveimage.

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Type of retail location- Under this,

retailers are classified according totheir stores geographical location.

With the increasing cost of central

business district centre sites, limitedparking facility, and traffic congestion,

many retailers have out-of-town

locations, whilst others have preferredto locate in cluster locations in

downtown centres.

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Method of customer interaction-

Traditionally, most of the retailinteractions or transactions have beenconducted by face-to-face contact in

retail stores. However, a significantnumber of retailers are generatingretail sales by non-store retailingoperations such as mail order

catalogues, telephone selling, vendingmachines, door-to-door selling, ormobile vendors.