An explanation on different types of retail format.

1. Understanding Retail Formats

2. Understanding Retail Business Formats
What is retails?
Definition: Retailing is a distribution process, in which all the activities involved in selling the merchandise directly to the final consumer (i.e. the one
who intends to use the product) are included. It encompasses sale of goods and services from a point of purchase to the end user, who is going to use
that product. Any business entity which sells goods to the end user and not for business use or for resale, whether it is a manufacturer, wholesaler or
retailer, are said to be engaged in the process of retailing, irrespective of the manner in which goods are sold.
Retailer implies any organization, whose maximum part of revenue comes from retailing. In the supply chain, retailers are the final link between the
manufacturers and ultimate consumer.
(by Business Jargons)
Retail, by definition, is the sale of goods or service from a business to a consumer for their own use. A retail transaction handles small quantities of
goods whereas wholesale deals with the purchasing of goods on a large scale. Retail transactions are not to be confused with online transactions;
goods must be sold from a single point directly to a consumer for their end users.
A retailer is a person or business that you purchase goods from. Retailers typically don’t manufacture their own items. They purchase goods from a
manufacturer or a wholesaler and sell these goods to consumers in small quantities.
Retailing is the distribution process of a retailer obtaining goods or services and selling them to customers for use. This process is explained through
the supply chain.

3. Broad classification of retailers?
Street Vendors
Kiosks
Mom & Pop store
Convenience stores
Department Stores
Multi Brand Store
Boutique
Franchise Store
Specialty Stores
Discount Stores / Value Retail
Supermarkets
Hypermarkets
Warehouse Stores
Dollar / Price stores
Pop-up Store
Phygital Stores
S H O P B A S E D R E T A I L
Tele Shopping
Direct Marketing
Vending
Online-Shopping
N O N S H O P B A S E D R E T A I L
R E T A I L S

4. Shop Based Retail

5. Street Vendors
Street vendors, or hawkers who sell
goods on the streets, are quite popular
world wide, it is one of the most oldest
form of retailing. At times through
shouting out their wares, they draw the
attention of customers. Street vendors
are found in almost every part of the
world. Many big cities in the world has
designated market where street
shopping is organized. These hawkers
sell not just clothes and accessories,
but also local food and host of other
products.

6. Kiosks
A kiosk is a small, temporary, stand-
alone booth used in high-traffic areas
for marketing purposes. A kiosk is
usually manned by one or two
individuals who help attract attention to
the booth to get new customers. Retail
kiosks are frequently located in
shopping malls or on busy city streets
with significant foot traffic.
Because of their small, temporary natures,
kiosks can be low-cost marketing
strategies. They are also a good way to give
a company a human face and to give
customers the opportunity to ask
questions about a product.
(by Investopedia)

7. Mom & Pop Shop
Mom and Pop stores are the small
stores run by individuals in the nearby
locality to cater to daily needs of the
consumers staying in the vicinity. They
offer selected items and are not at all
organized. The size of the store would
not be very big and depends on the
land available to the owner. They
wouldn’t offer high-end products.
The term "mom-and-pop" was
historically used to describe local family
owned and operated general stores or
drugstores. Today, mom-and-pop
establishments are synonymous with
various different types of businesses,
including restaurants, bookstores,
automotive repair shops, and insurance
agencies.
(by Investopedia)

8. Convenience Stores
A convenience store, convenience shop, or corner
store is a small retail business that stocks a range of
everyday items such as coffee, groceries, snack, food,
confectionary, soft drinks, tobacco products, over-the-
counter drugs, toiletries, newspaper, newspapers,
and magazines. In some jurisdictions, convenience
stores are licensed to sell alcohol, although many such
jurisdictions limit such beverages to those with relatively
low alcoholic content such as beer and wine. Such
stores may also offer money order and wire
transfer services, along with the use of a fax
machine or photocopier for a small per-copy cost. They
differ from general stores and village shops in that they
are not in a rural location and are used as a convenient
supplement to larger stores.
A convenience store may be part of a gas/petrol station,
so customers can purchase goods conveniently while
filling their vehicle with fuel. It may be located alongside
a busy road, in an urban area, near a railway or railroad
station, or at another transport hub. In some countries,
convenience stores have long shopping hours, and
some remain open 24 hours.
Convenience stores usually charge significantly higher
prices than conventional grocery stores or supermarkets,
as these stores order smaller quantities of inventory at
higher per-unit prices from wholesalers. However,
convenience stores make up for this loss by having
longer open hours, serving more locations, and having
shorter cashier lines.
(by wikipedia)

9. Department Stores
Department store, retail establishment that sells
a wide variety of goods. These usually include
ready-to-wear apparel and accessories for adults
and children, yard goods and household textiles,
small household wares, furniture, electrical
appliances and accessories, and, often, food.
These goods are separated into divisions and
departments supervised by managers and
buyers. There are also departmental divisions
of merchandising, advertising, service,
accounting, and budgetary control.
Department stores are often classified according
to the kinds of goods they carry and the prices
they charge; typical categories include discount,
general merchandise, fashion or high fashion,
and specialty. Many offer additional services,
including gift wrapping, alterations, delivery, and
personal shopping.
The development of department stores was
linked to the growth in the 19th century of large
population centers, transportation, and the
harnessing of electricity for power and lighting.
The Bon Marché in Paris, which began as a
small shop in the early 19th century, is widely
considered the first department store.
(by Encyclopedia BRITANNICA)

10. Multi-Brand Stores
Single brand retail, as the name suggests
is selling all products under a single brand
name only. Easy examples could be names
like Nike, Sony, Maruti, Mother Diary, Wills
lifestyle etc.
On the other hand, multi-brand retail is a
concept when a store or a portal or any
other form of outlet sells more than
one brand.

11. Boutique
A boutique is "a small store that
sells stylish clothing, jewelry, or
other usually luxury goods".[1] The
word is French for "shop", which
derives ultimately from
the Greek ἀποθήκη (apothēkē) or
"storehouse".
The term "boutique" and also
"designer" refer (with some
differences) to both goods and
services which are containing
some element that is claimed to
justify an extremely high price. As
with the fine art market, and the
use of art in money
laundering schemes, national
governments have to be
concerned with boutique shops
and the high pricing of boutique
goods as instruments in fraud and
other financial schemes.

12. Franchise Stores
Franchising is a method of distributing products or
services. At least two levels of people are involved in a
franchise system: (1) the franchisor, who establishes
the brand’s trademark or trade name and a business
system; and (2) the franchisee, who pays a royalty and
often an initial fee for the right to do business under
the franchisor's name and system. Technically, the
contract binding the two parties is the “franchise,” but
that term is often used to mean the actual business
that the franchisee operates.
There are two different types of franchising
relationships. Business Format Franchising is the type
most identifiable. In a business format franchise, the
franchisor provides to the franchisee not just its trade
name, products and services, but an entire system for
operating the business. The franchisee generally
receives site selection and development support,
operating manuals, training, brand standards, quality
control, a marketing strategy and business advisory
support from the franchisor. While less identified with
franchising, traditional or product distribution
franchising is larger in total sales than business format
franchising. Examples of traditional or product
distribution franchising can be found in the bottling,
gasoline, automotive and other manufacturing
industries. By International Franchise Association

13. Specialty Store
A small retail outlet that focuses on
selling a particular product range and
associated items. Most specialty store
business operators will maintain
considerable depth in the type of product
that they specialize in selling, usually at
premium prices, in addition to providing
higher service quality and expert
guidance to shoppers.
(By businessdictionary.com)

14. Discount Stores
(Value Retail)
In the recent time discount stores are also
referred as Value Retail. This format of retail is in
Fashion (TJ Maxx, Target, Ross, Max, Basicxx),
in Furniture ( Home Depot, Home Box, PANAM)
A department store which offers its items at a
lower price than many other retail stores.
Discount stores are often able to drop their prices
due to efficient distribution methods. Many of the
largest discount stores are also chain stores, and
include Wal-Mart, Target, and K-Mart.
Furthermore, many of these discount stores
could also be categorized as big-box stores, as
they grow to include more and more products,
sometimes even including a large grocery
section.
By businessdictionary.com

15. Supermarkets
a large self-service shop selling foods and
household goods.
By Dictionary
According to the Webster International
dictionary (1993), a Supermarket is a self-
service store or independent retail market
offering a wide variety of food and
household merchandise, organized into
departments. It is larger in size and has a
wider selection than a traditional grocery
store and it is smaller than a hypermarket
or superstore.

16. Hypermarkets
Super Store or Big Box
A "hypermarket" is a big-box store
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. By Wikipedia

17. Warehouse Store
A warehouse store or warehouse supermarket is a food and
grocery retailer that operates stores geared toward offering
deeper discounted prices than a traditional supermarket. These
stores offer a no-frills experience and warehouse shelving
stocked well with merchandise intended to move at higher
volumes. Unlike warehouse clubs, warehouse stores do not
require a membership or membership fees. Warehouse stores
also offer a selection of merchandise sold in bulk, Typically
warehouse stores are laid out in a logical format which leads
people a certain way around the store to the checkout. As one
enters the store they are directed down an aisle of discounted
special buys when entering the store. From there the layout
typically then leads to the fresh Produce followed by the Deli at
the back of the store. Also included bakery and other departments
similar to other supermarkets. Another typical feature of these
stores is that the customer bags their own groceries which also
helps to reduce the overall cost. Many warehouse stores are
operated by traditional grocery chains both as a way to attract
lower income, value conscious consumers and to maximize their
buying power in order to lower costs at their mainstream stores.
Notable examples of corporations who operate warehouse stores
include United States chains Kroger and Albertsons LLC and the
smaller Sacramento-based Nugget Market. However, WinCo
Foods is an exception as it is a warehouse chain of its own and
not part of a larger chain of traditional supermarkets
like A&P, Safeway, Kroger, or Supervalu.

18. Dollar- Price Stores
A dollar store is a store that sells
inexpensive items for one dollar or less
each. A popular concept throughout the
world, the stores usually sell everything
from cleaning supplies to children's toys
to food.
This format is very common in USA,
Canada, Europe, Middle east, Japan.
Not so common in south asia countries
like India, Pakistan, Bangladesh,
Sri Lanka et.al.
Some of the common names of these
type of store are:
USA – Dollar Tree, DEAL$, A Dollar
Canada – Dollarama, Buck or Two,
Mexico - Waldo's, Todo Un Precio
The Netherland - The Hema
Norway - Tier′n
UK – One Pound
Japan - The Daiso
Australia - Two Dollar Shop

19. Pop-Up Stores
A phenomenon that’s becoming more and more popular these days
for all kinds of brands is the 'pop-up store'. Pop-up stores are
temporary retail spaces that sell merchandise or an usual shopping
experience of any kind. Pop-up stores are rekindling the attachment
consumers had with high streets and shopping malls before the
advent of online shopping. Especially for the fashion industry, as a
store serves a great purpose in advocating sales by offering the
possibility of touching fabrics, feeling the textures and seeing the
colours of garments and accessories.
Alternative channels of shopping such as e-commerce websites,
mobile apps and social media are turning away traffic from traditional
brick-and-mortar stores. Brands are using the idea of pop-up stores
to give an immersive and exciting experience to customers. Added to
that is the quality of non-permanance, which heightens the sense of
thrill from such an experience.
Through such temporary establishments, brands are able to
reacquaint themselves with the current customer and assess the
market. Simultaneously, customers enjoy the personal treatment
experienced at such stores, bringing a human element to the
otherwise tech-driven path of online shopping, especially in cases
where brands do not have actual permanent stores.
Pop-up culture especially addresses to the demands and shopping
behaviour of younger customers, who exhibit a dwindling attention
span, shifting priorities and heightened spending power. They are
drawn to the extraordinary and uncommon trait of such a store.
By fashionbi.com

20. Phygital Stores
Phygital is one such word coined by
the retail industry that I quite like. ... The
neat new acronym, depictive of how
physical and online retail channels are
merging, blurring and influencing each
other in new ways. Consumers and
shoppers now have in-store, online
Ecommerce, and mobile and social
commerce networks.
Bring together the physical and digital stores, brands are
now building Phygital stores. E-commerce has been
rapidly growing, but customers till prefer shopping inside
a brick-and-mortar store, as they cannot achieve the
same sensory experience online.
Phygital technology in stores helps brands offer
unexpected experiences to shoppers. Unconventional
services are offered, that enhance the customer journey
and give them more reason to come shop with the
brand. A two-way interaction between a brand and a
customer at the store, that transcends the limits of the
physical walls, helps brands give a continued service to
the customer - extending beyond the realms of the
physical store.
By fashionbi.com

21. NON SHOP BASED RETIAL

22. Tele - Shopping
In simple words, teleshopping means buying
goods and services on telephone. It does not
involve correspondence and personal visits. The
seller prepares a short advertising film which is
shown on television screen.
It gives a full demonstration of the product along
with a list of contact phone numbers in every city.
People who feel convinced of the utility of the
demonstrated product contact the seller on
telephone and place orders, goods are delivered
to buyers through courier or value payable post
(V.P.P.).
Prior to e-Commerce (online shopping) this form
of shopping was popular, but since the advent of
online shopping and its convenience the form of
selling is at declining form.

23. Direct Marketing Shop
Direct marketing is a promotional method
that involves presenting information about
your company, product, or service to your
target customer without the use of an
advertising middleman. It is a targeted form
of marketing that presents information of
potential interest to a consumer that has
been determined to be a likely buyer.
By shopify.com
Common forms of direct marketing include:
Brochures
Catalogs
Fliers
Newsletters
Post cards
Coupons
Emails
Targeted online display ads
Phone calls
Text messages

24. Catalog Shop
Catalog marketing is
a sales technique used by businesses
to group many items together in a
printed piece or an online store, hoping
to sell at least one item to the recipient.
Consumers buy directly from
the catalog sender by phone, return
envelope or online using information in
the catalog.

25. Vending Machine
Vending works on automated methods and
helps the customers in making quick
purchase and receiving then and there
delivery. Vending machines are quite popular
among the young buyers. They usually offer
small items like snack food and beverages.
However this trend is soon going to change
as marketers are using vending machines to
offer more expensive and high-end products.
Such vending machines will have access to
internet or telecommunication services with
the help of which the buyers will be able to
make purchases using their credit cards.

26. e-tailing (Online Shop)
The customer has evolved, commerce is
constantly changing and the physical store is
undergoing transformation like never before.
Retail has always been about change, mode of
retail has been evolving for centuries.
Electronic retailing (e-tailing) is a buzzword for
any business-to-consumer (B2C) transactions
that take place over the Internet. Simply put,
e-tailing is the sale of goods online. Companies
like Amazon and Dell created the online retail
industry by putting the entire customer
experience - from browsing products to placing
orders to paying for purchases - on the Internet.
The success of these and other companies
encouraged more traditional retailers to create an
online presence to augment their brick-and-
mortar outlets. Electronic retailing may also be
referred to as Internet retailing.
By technopedia.com
Recent development in retailing not e-tailing but
m-tailing i.e. Mobile – Retailing..

27. Understanding RETAIL Models
MUNAWWAR HUSSAIN
munawwar@hotmail.com
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