Unit-2 Store retail formats

Retail Format refers to the basic structure of a retail business conceived , designed & developed to cater to the needs of the end customer.

Store Retail Formats

An effective store format gives the basis for delivering a specific offer to a customer type. You can then build your retail planning on all the processes needed to organize the format

Classification of Retail Formats

A. In Store- Retailing 1. Stand alone/ Independent outlet 2. Departmental Stores 3. Supermarkets 4. Hypermarkets 5. Discount Stores 6. Multiple shops 7. Convenience Store 9. Consumer Cooperatives 10. Off-Price Retailers B. Non-Store Retailing 1. Direct Selling 2. Telemarketing 3. Online Retailing 4. Automatic vending 5. Direct Marketing C. Franchising

Stand alone/ Independent outlet

Its control almost 75% of local retail operation in our country. No bargaining power with manufacturers and rely on old stock management techniques. It stands on reference and personal contact with owner and customers Pay more attention to the preference of customers Rely on wholesalers for the supply of goods Classification Single Line Stores: Departmental retail establishments Furniture,automobile,drug,grocery,book store,clothing,jwellery shop. General Stores: Wide variety of goods with groceries. Specialty stores: Limited variety of goods in a single line of merchandize To highlight the worlds cheapest car, Tata Motors introduced a fresh new plan for its mini car Nano by unfolding an exclusive ramp for her in various small towns across the country. The company sold 1000 stand-alone outlets along with dealerships across India.

Department Store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods, product needs; and at the same time offering the consumer a choice of multiple merchandize lines, at variable price points, in all product categories. A large retail store offering a variety of merchandise and services and organized in separate departments. Classification The independent stores The ownership group Chain Department stores Merits Special concessions as purchase in a lot Monetary transactions in cash Everything under one roof Catchy advertisements

Super market
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandize, organized into departments.
Merits Located in shopping areas Low and discounted priced material Availability of wide variety of items Offer products at low prices by reducing their economic margins

The supermarket typically comprises fresh produce, dairy, and baked goods departments, along with shelf space reserved for canned and packaged goods as well as for various non-food items such as household cleaners, pharmacy products and pet supplies.

 A Hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise. It allow customers to satisfy all their routine shopping needs in one trip. Availability of clothes,jewellery,hardware,sport equipment,computers,cycles,motor accessories,books,CDs,DVDs etc. Banks with cash machines, photo processing shops and pharmacies are also available.

Hypermarket

Discount Store
Discount store-A store that sells merchandise, especially consumer goods, at a discount from the manufacturer's suggested retail price. High in volume, low cost, fast turnover outlet More range of product lines Less fashion sensitive merchandise Less emphasis on credit sales

Off price store- retail stores offering merchandise at prices less than other retail stores. They acquire out-of-season products and distressed merchandise from other retailers, including bankruptcies, and from manufacturers having production overruns. Off-price stores can threaten retailers carrying name-brand merchandise at full retail prices.

Convenience Store
It is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and wire transfer services. A convenience store may form part of gas/petrol stores. They may be located alongside busy roads, in urban areas, or near railway stations or other transportation hubs. In some countries convenience stores have long shopping hours some being open 24 hours. Types are liquor stores , mini-markets (mini-marts) or party stores Food (sweets, ice-cream, soft drinks), lottery tickets, newspapers and magazines are sold From household products, to prepackaged foods like sandwiches Automobile-related items such as motor oil, maps and car kits may be sold. Often toiletries and other hygiene products are stocked.

Discount store
A discount store is a type of department store, which sells products at prices lower than those asked by traditional retail outlets. Most discount department stores offer a wide assortment of goods; others specialize in such merchandise as jewelry, electronic equipment, or electrical appliances. Discount stores are not variety stores, which sell goods at a single price-point or multiples . Discount stores differ from variety stores in that they sell many name-brand products, and because of the wide price range of the items offered.

Off Price Retailer

Off-price retailers offer a different approach to discount retailing. As discount houses tried to increase services and offerings in order to upgrade, off-price retailers invaded this lowprice, high-volume sector. Off-price retailers purchase at below-wholesale prices and charge less than retail prices. This practice is quite different from that of ordinary discounters, who buy at the market.

Corporate chains
Two or more outlets that have common ownership and control, centralized buying and merchandising operations, and similar lines of merchandise are considered corporate chain stores. Corporate chain stores appear to be strongest in the food, drug, shoe, variety, and womens clothing industries. Managed chain stores have a number of advantages over independently managed stores.

Consumer cooperatives
Consumer cooperatives are enterprises owned by consumers and managed democratically which aim at fulfilling the needs and aspirations of their members. A cooperative (also co-operative; often referred to as a co-op) is a business organization owned and operated by a group of individuals for their mutual benefit. Cooperatives are defined as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through jointly owned and democratically controlled enterprises. Consumer cooperatives bought goods in bulk and sold them to participating members. This approach allowed them to offer food and other everyday items at reduced prices.

Shopping malls
A shopping mall, shopping centre, shopping arcade, shopping precinct or simply mall is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area a modern, indoor version of the traditional marketplace.

Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation from franc- meaning free, and is used both as a noun and as a (transitive) verb. The franchisor's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.

Format Branded Stores

Description Exclusive showrooms owned or franchised out by a manufacturer Focus on consumer need Large stores having a wide variety of products, depts. like clothing, furniture, appliances, tools. Extremely large self service retail outlets Offering discounts on retail price through selling high volumes reaping economies of scale Larger than supermarket ,located a bit far from city Small self service formats, located in crowded urban areas

The value proposition Certified quality product available with all range Greater choice to the consumer One stop shop catering to varied consumer needs

Specialty Stores Department Stores

Supermarkets

One stop shop catering to varied consumer needs Low Prices

Discount Stores

Hyper Market Convenience stores

Low prices, vast choices available C convenient location & extended operating hours

Shopping Malls

Different formats of store retailers ,all under one roof

Variety of shops available

Indian Top Retailers

1.Pantaloon(Supermarket-Food Bazar, Hypermarket-BigBazar Mall Centralk. Largest retailer,500stores,Turnover of Rs.20 blln) 2.K Raheja Group (Supermarket and Hypermarket,1st Departmental store Contractual joint venture with Airport. Sales turnover-Rs.1 blln) 3.Tata Group (Hypermarket at lowest cost, Sales turnover Rs.4 mlln 2010) 4.RPG Group (Hypermarket-Alliance with Diary Farm International, sales turnover of Rs.5 blln in 2010) 5.Subhiksha(Discount store,Chennai based, ICICI Venture capital 24% of Equity capital, turnover of Rs.4 blln in 2010). 6.Reliance(Investment of Rs.30,000 cr sales of Rs.90,000 cr in 2010,more than 300 Reliance Fresh stores,400 stores in India 7.Birla Group (Own brands like Louis Phillipe, Van Heusen, Allen Solly, Peter England) 8.Bharti-Wallmart(50:50 Joint venture)