Types of Retail Outlets

The retail set up can be classified in two different types. One the store based and the other non-store based. The store based can be classified further into Product, Price, Ownership and Service based outlets whilst the Non-store based retail outlets would consist of On-line, Direct, Catalogue and the TV retail.

Product based retail outlets would consist General Merchandise, Food retailing, Services Retail and Food Service Retailing. The examples of price based retail outlets are; Factory outlets, single price outlets, the Dollar Store and the category killers. Ownership based retail outlets would ideally cover the corporate retail outlets, franchises outlets, the independent retail outlets and the co-operative outlets. The service based retail outlets encompass full service, limited service, self service and the vending machines.

Automated Retail

Automated retail is the category of self-service, standalone kiosks in heavily trafficked establishments such as airports, malls and resorts.

Big Box Store

A big-box store (also supercenter, superstore, or megastore) is a physically large retail establishment, usually part of a chain. The term sometimes also refers, by extension, to the company that operates the store. The store may sell general dry goods in which case it is a department store, or may be limited to a particular specialty (such establishments are often called “category killers”) or may also sell groceries, in which case some countries use the term hypermarket.

Cash-and-Carry format

A store where customers pay cash for the goods they purchase and carry them away themselves (the retailer does not offer delivery service). Mostly these are wholesale stores wherein buyer has to purchase worth certain minimum specified amount.

E.g. Metro Cash & Carry

Category Killer or Category Specialist

A product, service, brand or company that has such a distinct sustainable competitive advantage (range/price) that competing firms find it almost impossible to operate profitably in that industry (or in the same catchment area). You think of the category & it’s in mind.

E.g. Toysrus, Best buy, Vijay Sales, Croma

Convenience Store

These stores are located at convenient locations like fuel stations, residential areas and are open for longer durations through the day. Stocks products which are used in high frequency but the range is restricted. Fast movers are kept & price is not a driving factor. Small supermarkets & small stores in retail chains which are conveniently located for customers can be called Convenience stores.

E.g. Local Kirana (Grocery) stores, 7-Eleven.

Department Store

It represents retail outlets that stock a wide variety of merchandise that is organized into separate departments for the purpose of promotion, service & control. The products range from apparel, toiletries, cosmetics, toys, footwear, watches & jewellery to appliances & furniture.

Discount Store

Discount Retail can be broadly defined as a retail format where 60% to 70% of the merchandise is sold at a sharp discount. Usually they carry small range of products.

E.g. Subhiksha, wholesale grocery stores

E-Retailer

It is a form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store, internet shop, web-shop, web-store, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre.

General Store

A general store, general merchandise store carries a general line of merchandise. It carries a broad selection of merchandise, sometimes in a small space, where people from the town and surrounding rural areas come to purchase all their general goods. The store carries routine stock and obtains special orders from warehouses.

Hypermarket

A very large retail format that offers low prices & stocks all food & non-food products of personal & household needs under one roof. Hypermarkets typically hold more than 25000 SKUs.

These are Destinations, located at non-prime locations, outskirts of major towns & cities.

Value Proposition – Diverse offerings & high quality products & services at prices which may be 10-20% lower than supermarkets & department stores. These are monthly destination stores.

E.g. Wal-mart, Carrefour, Hypercity, Big Bazaar, Star India Bazaar

Kiosk

Kiosks are located in malls, multiplexes, railway stations and airports where space is at a premium and mostly engage in selling consumer goods like edibles and snacks, newspapers and magazines, fashion accessories stores and entertainment. Kiosks are also put-up for special promotions & marketing activities.

Mall

A large retail complex containing a variety of stores and often restaurants and other business establishments housed in a series of connected or adjacent buildings or in a single large building.

Mom-and-Pop Store

A store that is small and operated by people who appear to be members of a family. Most traditional grocery stores & general stores are of this type.

Retail Chain

Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses.

Specialty Store

Small stores which specialize in a specific range of merchandise and related items. Most stores have an extensive depth of stock in the products that they specialize in and provide high levels of service and expertise.

E.g. Spinach(for F&V), Nature’s basket, My Dollar store.

Supermarket

These are normally low cost, low-margin, high volumes, self service stores which offer a wide range of food, laundry & household articles. Catchment for such store is considered approximately 1-1.5 km.

Located in town centre or neighborhood locations.

Value Proposition – Variety, quality & service. One-stop family shop; having everything that goes in a basket on a monthly basis.

E.g. Food Bazaar, D-Mart

Vending Machine

A machine which dispenses items such as snacks, beverages, alcohol, cigarettes, lottery tickets, consumer products and even gold and gems to customers automatically, after the customer inserts currency or card into the machine.