Retail Formats

Formats in Retailing

Based on Ownership

Based on store-based retail mix

Non-store retailing

Retailing Formats

Independent - single outlet / store Chain - multiple outlets / stores Franchising - rights to use trademarks, formats &

processes Leased department (“shop-in-shop”) - given to

outside parties Vertical marketing system- more than one member

of channel owned by a single firm Consumer Cooperative - retail firms owned by

consumers

Formats in Retailing Based on Ownership

Wheel of Retailing

Explains the Institutional changes that take place when Innovators enters the retail arena.

(McNair,1931)

Wheel of Retailing

Low-end Strategy Low-prices Limited facilities and services Price-sensitive Consumers

Medium Strategy Moderate prices Improved facilities Broader base of value and service conscious

consumers

High-end Strategy High prices Excellent facilities and services Upscale consumers

A. Food-oriented: Convenience store Supermarket Superstore Combination store Warehouse Club / Warehouse storeB. General Merchandise : Specialty store Department store discount store Variety store Factory outlet /Seconds outlet Membership club

Formats in Retailing Based on Store-based Retail Mix

Characteristics of Retail Stores

Format LocationAddition to

Food Pricing Ambience / ServiceWidth Depth

A. Food-oriented:Convenience store N M L Nil M MSupermarket N H H Nil L M

Superstore S H H

Health, beauty , Gen. Merch. L M

Combination store S / O H HDrugstore, Gen. Merch L L

Warehouse Club / Warehouse store O H H Gen. Merch L L

B. General Merchandise :Speciality store S L H L M / HDepartment store S H H M / H M / Hdiscount store S / O H H L M Variety store S / O H H M LFactory outlet /Seconds outlet O L L L LMembership club O L L L L

Range

Legend: N = Neighborhood, S = Shopping centre, O =Outskirts , H = High, M = Medium , L = Low

Formats in Retailing - Non store

Types:

•Direct Selling - word -of-mouth / person-to-person

•Direct Marketing - on Mail, phone, fax or computer

•Electronic / Internet Retailing - on the Internet

•Vending machines / kiosks - through machines, non-personal

Other Classification

All the formats are

broadly Classified as under

Value Retailing Lifestyle Retailing

•Independent of growth in purchasing power•Prominent during initial stages of Organized retailing

•Driven by purchasing power Growth•Driven by Lifestyle aspirations and changing consumer mindset

Discount StoresHypermarket

Department StoresSpecialty Stores

Status of Formats in India

Dollar Store – A Snap shot

17 Physical Stores in IndiaProduct CategoriesHouse wares KitchenwareFlowers StationeryGift items PartysuppliesApparel Health & BeautyCandles SeasonalOffice supplies FoodAutomotive Electronic &

Hardware

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