Types of RetailersDetermined by NAICS (North

American Industry Classification System)Used in Mexico US, and CanadaDetermined by what type of

product the retailer sells

NAICS Retail Industry Categories 441 Motor vehicle and parts dealer 442 Furniture and home furnishings stores 443 Electronics and appliance stores 444 Building material and garden equipment

and supplies dealers 445 food and beverage stores 446 Health and personal care stores 447 Gasoline stations 448 Clothing and clothing accessories stores 451 Sporting goods, hobby, book, and music

stores 452 General merchandise stores 453 Miscellaneous store retailers 454 Non-store retailers

Basic TerminologyRetail Sales Associates

Employees who sell merchandise and products to customers Have sales training Extensive knowledge of the product they are selling

Variety of MerchandiseThe product or merchandise lines that a retailer

carry

Merchandise AssortmentThe number of items within each merchandise line

Types of Retail OwnershipSingle (Sole) Proprietorship

Owned by one personMakes all decisions regarding the businessResponsible for all financial losses or gains

PartnershipAgreement between two or more peopleBoth provide financing for the business

CorporationSells stocks to investors who become the ownersMore expensive to startLess risk,

owners are liable only for how many shares they have

Types of Store OwnershipIndependent store

Privately owned, one locationNo agreements with merchandise groups or

franchises

Chain StoreAt least two locationsOwner is less involved with customers

Store GroupsDifferent stores owned by same companyOld Navy, Gap, Banana Republic

Types of Store OwnershipManufacturer Retail Stores

Owned by manufacturerSell only their own products

Franchise BusinessFranchisor leases it’s name to the franchiseethe franchisor receives a percentage of the profits

of each franchise

CooperativesOwned by a group of peopleOnly sell to members of the co-op

Types of Business OwnershipVoluntary chain store

Group of retail store’s that operate independently but purchase product together to save money

Lease DepartmentSmall business rents space

in a large business

Lease DealershipsLarge company leases space

to a dealer to sell their product

Types of Store-Based RetailersStore-Based Retailer

Operates and conducts business from a fixed location

General-Merchandise RetailerSells a large variety of merchandise

Department StoreSeparates merchandise into different departments or

sections Branch stores

Baby gap Twig stores

Wal-Mart neighborhood

Types of Store-Based RetailersJunior Department Store

Carry many varieties of merchandise, but all merchandise lines Bed, Bath and Beyond

Specialty StoresSell one type of merchandise

Foot locker, Barnes and Noble

Category Specialty StoresCarry large assortment of merchandise at a

lower price Circuit City

Types of Store-Based RetailersDiscount Department Stores

TJ MaxxVariety Store

Small retail outlet sells variety of low-priced merchandise

Off-Price StoresRoss

Outlet StoresOwned by Manufacturer

Warehouse and Wholesale ClubsCostco, Sam’s Club

Food RetailersSupermarketSelf service, sells mostly food and other retail

merchandise Smiths, Albertsons

Convenience storeSells food and household items at higher prices

Super centersCombo of large discount department store and

a discount supermarket. Wal-mart, Target

Types of Service retailersService retailer

Sells something intangible -- an activity

Types of service retailers Financial-Services retailer Hospitality and lodging services Maintenance and repair Automobile repair Personal services Recreation and tourism Rental services Restaurant and food services Security services Transportation services

Channels and E-TailingMultichannel retailing

Using websites and catalogs as well as a store

E-Tailing The selling of goods and services using the internet

Non-Store Retailing Direct selling

Avon, Mary Kay Vending machines Catalogs Internet Direct mail Telephone selling Infomercials TV shopping channels Street vendors

Key terms NAICS Sales Associates Merchandise Variety Merchandise Assortment Single proprietorship Partnership Corporation Independent store Entrepreneur Chain stores Franchisee Franchisor Franchise Store-based retailer General merchandise retailer Department store Junior department store Specialty store Discount department store Variety store Off-price retailer Outlet store Warehouse club

Food retailer Super market Convenience store Super center Service retailer Financial services retailer Hospitality and lodging services Maintenance and repair service

retailer Personal services Recreation and tourism services Rental services Multi channel retailing E-tailing Non-store retailing Direct selling Vending machine Catalog retailer Direct mail Telephone selling Infomercial TV shopping channels Street vendors