Retail Industry Sectors: Types of Retail

Retail Industry Sectors: Types of Retail Trade

A marketplace is a place where goods and services are exchanged. The traditional market square is a town square where traders set up stalls and shoppers browse the wares. Today, retail products are typically sold in a number of different establishments. Convenience stores, specialty stores, department stores, supermarkets and hypermarkets, discount stores, multi-channel stores are some models used by the retail industry to provide goods to end customers.

Retail goods are typically sold at a number of different establishments. Retailers can be categorized by a combination of retail store strategies, which is an integrated combination of hours, location, assortment, service, advertising, and price, etc. Retail establishments are generally classified into the following sectors:

  • convenience stores
  • grocery stores
  • Specialized retailers
  • Clothing stores
  • Automotive retailers
  • Furniture retailers
  • Pharmacies
  • Department stores
  • Super Markets and Hyper Markets
  • Discount stores
  • Multi-channel stores
  • Direct selling catalog and mail order companies
  • Some e-commerce companies

Below is the overview, definition and major activities of various retail industry sub-sectors:

1. Convenience stores:

Small stores that sell a variety of products, such as newspapers, magazines, candies, soft drinks, tobacco products and lottery tickets. The convenience store is usually a well-located, food-focused store with a long operating room and a limited number of items. These stores are usually located in urban neighborhoods or along busy roads. Convenience stores are often open longer than other types of retail establishments, making them convenient for customers. However, the prices are often higher than in other types of stores. Consumers use a convenience store; for filling items such as bread, milk, eggs and sweets etc.

2. Specialized stores:

Specialty stores are retail establishments that specialize in the sale of a single type or specific range of merchandise and related items. These establishments generally focus their efforts on selling a single type or a very limited range of merchandise. They focus on selling a single line of products or services, such as audio equipment, jewelry, beauty and healthcare, clothing, musical instruments, sewing shops and stores party items. A typical specialty store pays particular attention to a particular category and provides a high level of customer service. Even branded stores also fall under this format. Consumers are not faced with racks of unrelated merchandise.

Example: Music World for audio needs, Tanishq for jewelry and McDonalds, Pizza Hut and Nirula’s for food services.

3. Department stores:

Department stores are large retail establishments made up of a number of sections or departments. A specific group of products is available in each department, each specializing in the sale of a particular group of products. For example, in this compartmentalized arrangement, consumers go to one area of ​​the store to purchase tableware and to another area to purchase bedding. These are usually very large stores with a wide assortment of ‘soft’ and ‘durable’ products; they often look like a collection of specialty stores. A department store typically sells a general line of family clothing, linens, home furnishings, and appliances.

Example: Large format clothing stores include Pantaloon, Ebony, Pyramid, Shoppers Stop and Westside.

4. Supermarkets & Hypermarkets:

Supermarkets and hypermarkets are retail establishments that were primarily involved in the sale of food products. Many supermarkets also offer other household products.

Supermarkets are very similar to grocery stores, but they are usually larger and have a wider selection of products. Supermarkets can be anywhere between 20,000 and 40,000 square feet (3,700 m2). A supermarket usually carries small appliances, some clothing items, baked goods, film development, jams, pickles, books, audio/video CDs, etc.

A hypermarket is a large retail facility, or hypermarket, that offers a very wide variety of products under one roof, including groceries and a variety of non-food items. It is a self-service store consisting mainly of groceries and limited products on non-food items. Hyper Markets is a special type of combination store that integrates an economy supermarket with a large discount store. A hypermarket usually has an atmosphere that appeals to the whole family.

These retail establishments, which were primarily used to supply food to consumers, have ventured into other product sectors in recent years. They represent the vast majority of total grocery store sales in America.

Example: SPAR supermarket, India, government run super bazaar and Kendriya Bhandar in Delhi are good examples of a supermarket. Similarly in Mumbai we have Apna Bazar and Sahakari Bhandar. Pants Retail India Ltd. (PRIL) through its “Big Bazar” hypermarket.

5. Discount stores:

Discount stores are stores that typically sell a wide range of products at lower prices than other retail establishments. However, they usually also offer lower levels of service than higher priced retailers. These stores tend to offer a wide range of products and services, but they compete primarily on price. They offer a huge assortment of merchandise at affordable and discounted prices. Normally, retailers sell less fashion-oriented brands. These retail outlets offer consumers a trade-off: lower prices (usually on a wide range of products) in exchange for lower levels of service. Indeed, many discount stores operate on a basic “self-service” philosophy.

6. Multi-channel stores:

These are retail establishments that sell products to consumers through a variety of channels, including catalogs, mail order, telemarketing, the Internet, and vending machines. They are also known as mail order businesses and other non-store retail establishments. The customer can shop and order over the Internet, by mail or by other means and the merchandise is delivered to the customer’s door.

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