Also known as Kirana Store & Mom & Pop Store

Retailers owns one retail unitAre run by owners & their familiesIndia has the highest no. of independent

stores- kirana storesThere are 9 million independent stores in

India accounting to 70% of retail outletAverage size in India is app 25-30 sq.

meter

Independent

brands are limitedAllow customer to buy on credit home delivery in neighborhoodEmploy members of extended familyTakes order by TelephoneEase of entry into the market so many

independent outlet .

1. Flexibility in choosing retail formats and locations2. Because only one location is involved , detailed

specification can be chocked out3. Small segment of customers are catered to 4. Investment cost for lease , fixture & workers can

be held down 5. prices, hours & other factors are set according

to the segment6. Personal relation is created7. Free from unions & seniority rules

Advantages

In bargaining with suppliers, independent don’t have much power as they often buy in small quantities.

Reordering maybe difficult if minimum order requirement is not full filled. Therefore Independents often form groups

Loose on Economies of Scale High cost of transportation ,ordering &

handling cost

Disadvantages

Labor intensive –everything is done manuallyless promotional strategyOverdependence on ownersLittle time for long run planning

Multiple outlets, under a common ownership , so the decision making & purchasing is usually centralizedAdvantagesa.Have bargaining power due to the purchase volumeb.Can take advantages of mediac.Use technology

Chain Stores

d. They usually give time to long run planning & may assign the job to someone for day to day management.e. Warehousing maybe centralizedf. Less dependent on the owner & usually has trained management

Difficult to find new locations Difficult to maintain consistency in terms of

prices ,products, assortments firstly due to difference in management & secondly due to difference in local market

Investment is higher. Managerial control is difficult

Disadvantages

A contractual agreement between a franchisor (a manufacturer, whole seller, service provider) & a retail franchise, which allows the franchise to conduct business under a established name & according to a given pattern of businessThe franchisee pays a initial fee & a monthly percentage of gross sales in exchange of exclusive rates to sell goods & service in that area.

Franchising

Acquires the identity of a franchisor by agreeing to sell the latters products & operate under the latters name.The franchise operates rather autonomously. There are certain operating rules but the franchisee set the store hours ,chooses a location & determines facilities and displays.

Trademark Franchising

Receive assistance on site location ,quality, control ,accounting system, startup practices, management training & responding to problems besides the right to sell goods & services.

Prototype stores ,standardized product lines, cooperative advertising ,foster a level of coordination previously found only a chain stores.

Business Format Franchising

Unit Franchising – Can operate only one unit

Master- Grants large territories & sub franchising is allowed - Raymond's ,Titan, Wills lifestyle

Development Agreement- Has right to operate multiple units in a territory but no sub franchising If they operate one outlet ,they are independent & 2 or more they are chains

Types of Franchise

a. Acquire well known nameb. Relatively small capital investmentc. Standard operating procedured. Cooperative marketing efforts e. Exclusive selling rates.f. Purchases may be less costly

Advantages to Franchisee

a. Oversaturation if too many in one areab. Locked into contracts requiring to purchase

from one franchisorc. Cancellation claused. Royalty

Disadvantages to Franchisee

a. National global presence developed more quickly

b. Franchisee have to abide by strict rulesc. As franchisee owner so they work hard

Franchisor

a. Harm the overall reputation if they do not adhere to co. standards

b. Lack of uniformity among outlets adversely affects customer loyalty

c. Intra franchise competition not desirabled. The resale value of individual unit is injured

if franchisee performs poor

Disadvantages

Leased departments

Is a department store inside a retail store.

The leased department proprietor is

responsible all aspects of its business.

The retail store puts some operating

restrictions to ensure overall consistency

and coordination.

Advantages for retailerMarket is enlarged

Personnel management, merchandize display

and reordering all are undertaken by lessee.

Regular store personnel do not have to be

involved.

Some expenses are paid by the LD so total

cost of store is reduced.

A % of revenue is received regularly.

disadvantagesLessee may adversely affect the stores

image.

Advantage to the leased department

Stores are known and have a steady walk in of

customers.

Costs are reduced

Their image is enhanced by their relationship

with popular store.

Problems- the restrictions by the retailer in

terms of hours and days of working and total

products that can be stored are less

Department store

Large retail units with an extensive assortment

of goods and services that are organized into

separate departments for the purpose of selling.

Wide range of products like apparel, furniture,

appliances, home furnishing, toys, footwear,

handbags , wallets, watches, jewelry and so on.

with no one merchandize line predominating

No grocery

Convenience store Typically a well located food oriented retailer and carries a

moderate number of items.(serving the catchment)

Ranging from 1,500 to 5,000 sq. ft. in size

All necessary everyday household items including milk,

eggs, bread

Limited number of brands

Store area is small with an average atmosphere. with very

less walking space.(aisle)

Customer shop multiple types and the average transaction

size.(average ticket size)

Due to limited shelf space stores receive

frequent deliveries.

Simple and frequently used fruits and

vegetable only.

No elaborate layout.

have the same entry exit door

Easy day, twenty four seven, reliance

fresh,6ten, Spencer's daily, food mart

supermarket

Big grocery store

Large area- 10,000-30,00 square feet

Large isles

Non vegetarian section

Variety of products with a large number of brands

All household items including crockery, plastic

goods, utensils

Food bazaar ( by big bazaar),Spencer's super

hypermarketCombination of department store and

supermarket.

Average size 60,000- 1,20,000 square

feet

Have on an average of 70,000 items

Big bazaar, Spencer’s hyper

Specialty Stores

These include Lois Vuitton, the Body Shop, and Victoria’s Secret. These stores concentrate on one type of merchandise and offer it in a manner that makes it special. Some are very high-end (Louis Vuitton) while others cater to the price-conscious masses (Old Navy).

The retail chains, which deal in specific categories and provide deep assortment within the category in them are specialty stores.

Category KillerAs the name suggests, category killer is a

large retail chain store that dominates its product category so completely that it eliminates a large chunk of competition. Also known as big box store, a category killer is a discount speciality store that offers an extensive selection of merchandise at prices so low that smaller stores cannot compete (read survive).

Discount StoresThese are the stores or factory outlets that

provide discount on the MRP items. They focus on mass selling and reaching economies of scale or selling the stock left after the season is over.