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REPORT ON THE FORMS OF
ORGANISED RETAILS IN
INDIA AND IN THE WORLD
PREPAIRED BY:
Priyom Majumder
October, 2018
This paper talks about the various forms of the retail outlets that are available
in India and as well as throughout the globe. Some examples have been
mentioned for the better understanding of the project. The differences among
them and the similarities are also mentioned in the project work. Also a report
of plagiarism is also attached to this document.
INTRODUCTION
Meaning of Retail Outlet
Retail outlet is defined as a store that sells the goods in a smaller quantity. The selling could
be through store, kiosk, or even by the mail or Internet. The retailers generally buys from the
wholesaler in large quantities and takes advantage of heavy discount and sells them in the
market with the help of certain mediums like – Internet, kiosks and even the store. Retailer
acts as a medium for the wholesaler for selling the goods. Since the wholesaler purchases the
products directly from the company therefore the price of the goods would be lesser.
Types of Retail Outlet
On the basis of their location and the way they are managed and the accountability the retail
outlet can be of two major types:
a. Organised Retail: In India organised retail is referred to those which are undertaken
by licensed retailers, that is, those who are registered to pay sales tax, income tax, etc.
The examples of these outlets could be the supermarket, hypermarket. Big Bazaar
could be a good example of organised retail. They are liable to pay tax and also
having proper accounts of their sales and purchase and give computer generated tax
invoice.
b. Unorganised Retail: These are those outlets which are run by the local households
and are less likely to know the technical aspects of accountability. These outlets can’t
generate a computerized tax invoice. This is a major difference between organised
retail and unorganised retail.
FORMS OF RETAIL OUTLETS
Types of Retail Outlet based on Floor Space and Variety
As already discussed organised retail outlets are those who provide the buyer with a
computerized tax invoice and are accountable for paying of tax. Australian entrepreneur,
Gerry Harvey, once said this about retailing: “Basically we get confused a bit about what
retail is. It is really just buying things, putting them on a floor and selling them.” In the
country like India where the population is a huge factor for the growth of economy, the retail
business is booming one, and there are a number of retail formats. In this category we are
talking about the different types of stores based on floor space and variety. They are:
a. Departmental Store: Departmental store are those types of stores which offer a wide
range of products under one roof. But the major difference that could be stated is the
total store is divided into various departments. Today the departmental store include –
clothing, furniture, house ware, gardening, toiletries, sporting goods, etc., sometimes
few of them also deals in jewellery, baby products, and products for pets. Few of the
examples of departmental store over the globe are – Arnold Constable in New York
City (US), Spencer’s in Canada, Big Bazaar in India, and many more.
b. Supermarket: This is referred to those stores which are self-service store and these
generally deals in meat, fresh produce, dairy, and baked goods, along with shelf space
reserved for canned and packaged goods and as well as non-food items such as
kitchen wares, household cleaners, etc. The main difference of supermarket from the
departmental store is that the departmental store is a modified version of general store,
whereas a supermarket is a bigger version of departmental store with more variety of
products and also with more number of products. If one could think of a huge Big
Bazaar then it could be termed as Supermarket. Some of the examples of supermarket
in India are Spar or Subiksha.
c. Hypermarket: Sometimes known as “supercentre” or “superstore” is the one which is
a combination of supermarket and a departmental store. This refers to the expansion
of retail business by providing a wider range of products under one roof. It is the
biggest of all. A hypermarket generally covers an area of 54000 to 161000 sq. feet.
Some of the examples of hypermarket are Carrefour in Europe, Ito Yokado in Japan
and Wal-Mart Supercentre in US.
d. Speciality Store: Speciality store or specialist store is the one which deals in with only
one type of good. The seller of the products is generally specialist of that product. For
example Camera Stores, pharmacies, etc. The difference from the other three
categories is that the floor space acquired by a speciality store is considerably lesser
than that of departmental store, supermarket or hypermarket.
e. Mall: Mall could be considered as a hybrid of departmental store and speciality store.
This generally are more than 2 storied building with different stores in it dealing in
some specific commodity. Reason of being it a hybrid store is, alike speciality store
malls have stores that deals in a particular product and alike departmental store the
departments are divided into various sections. For example DB Mall in Gwalior, M.P.
(India), have stores like Titan Eye Plus as a different store dealing only in eye glasses
and also having a separate section for the foods, other area allocated for foot wares.
Thus, this is a hybrid or a mixture of departmental store and Speciality Store.
f. Factory Outlet: This is the emerging form of business. This deals in the products that
are out-dated, damaged or produced in excess of quantity. These products are further
connected to the customers at a discounted price and because of this USP of this type
of store, which it offers at a discounted price, customers get attracted towards it. The
products are directly purchased from the factories and are sold in the market at a
lower rate. One of the examples of it is Shopclues.
g. Full-line discount store: These are those stores that provide goods at a discount to the
customers. But the difference between this and factory outlet is that this deals in the
product that have already been used. The seller wither sells the product or puts it for
rent. Few examples are Aldi in Australia, Dia in Brazil and many more.
h. Catalogue Showrooms: This type of showroom is generally not found in India. The
store deals in a number of products and it is a self-service store. But unlike Big
Bazaar and other supermarkets the products are not displayed, rather than the
consumer or the buyer is given a catalogue with a number of products printed in it that
are available with the store and they are asked to fill out the order form. Those
products are brought to the sales counter, where a clerk retrieves the items from the
warehouse area to payment and checkout station. Argos in UK is a good example for
catalogue showroom.
All of the above classifications are out of the floor space and variety of goods available in an
organised retail store. Thus we could conclude up here that the organised retail outlet could
be classified in five different ways based on the floor space and variety.
Types of Retail Outlet based on Ownership
The most important part of the organised retail is the ownership of the outlet, who owns it
and the name of the outlet. The name used for an outlet effects directly on its customer
attractiveness and thus profit maximizing. The retail outlets could be subdivided into the five
types based on the ownership of the firm.
a. Independent Retailer: As by the name suggest that the retailer is independent, that
means that he/she is not dependent on any other member or person. These are those
outlets that are owned by only a single individual. These types of stores offer both
high risk and high returns to the owner. But most importantly this deals in a variety of
products and is not a self-serviced store. The owner’s decision is the greatest risk over
here.
b. Chain Store: This is the form of that outlet which have their branches in more than
one place in anywhere in the map. A store that shares a brand in different location is
known as chain store or retail chain. The owner of the store is a single person or
institution. In other words the owner of all the outlets is same.
c. Franchise: This type of store or firms are generally and most likely to be seen. This
are those who are been authorised by government or by a company to carry on the
business by using the companies name and deal in the company’s products. The
owners of this type of outlets are different. For example, if we take example of
McDonald’s, the owner of the outlet in Gwalior is not the same as in Bhopal, but they
are authorised to sell the products using the name of the company and this is what
franchise is all about. The thin line difference of franchise from chain store is the
ownership, the owner of chain stores is same for any location but in case of franchise
they are different for different locations.
d. Leased Departments: This can be defined as business under the premise of another
business. That is one company is doing the operation within the establishment of
another company. For example, the optical centres.
e. Consumer Cooperative: This are the business owned by the consumers themselves
for the benefit of their member. These types of business or stores generally don’t look
for profit but for the service to the members. The consumer’s works with mutual
consent and the decision taken are generally in majority. The major examples of these
types of outlets are Mountain Equipment Co-op (MEC) in Canada, Amul in India,
Lighthouse Cooperative in Philippines, and many more.
Classification on the basis of Non-Store retail forms
The companies and the owner of the business generally acquire a space for dealing in the
products. But in some cases to avoid fixed cost the company uses a technique called non-
store based selling. Non-Store based retail forms. They are:
a. Direct Selling: This is a form of retail format that is based on B2C (Business to
Consumer) format. The company’s products are directly sold to the consumers. The
major medium of this type of dealing are through internet and sales person. The
companies builds a platform that shows the available products of the company and
then the customers chooses and proceeds for checkout and the company directly ships
the product to the customer. Some of the major examples of these types of
organization are Amway, Tupperware, Mi Lifestyle Marketing Global Private
Limited, etc.
b. Mail Order: This is a type of retail format where the buyer places their order through
mail or over the phone. The company mails the catalogue with the product code to the
customers and they places the order based on their demand. This is a major way of
selling products now-a-days. The company sells their brochure with attractive prices
to the customer and the customers are redirected to the company’s website and they
purchase the product as per their needs.
c. Telemarketing: Another emerging way of selling the product is to advertise the
product, and its feature in the television. The most common company which deals in
such kind of sales procedure is Naptol. They advertise their product and its feature
and uniqueness and the customer are asked to place their order by a phone call.
Therefor this is an over-the-phone dealing by the customer. The best part of the
telemarketing is that it attracts potential customers.
Classification based on service retailing
The retail is not only dealing with physical goods but also with the service. The service
industries are also a type of retail outlets, the only difference is here the emphasis is given on
services rather than the products. Thus based on their working it could be classified into
following categories:
a. Car Rentals: Car rentals or car hire agency are those who provides with cars for a
short period of time, generally ranging from few hours to few weeks. The reason of it
being up here is the customer chooses from a wide range of cars and acquires it. As
already mentioned retail is generally putting the products in the floor and the buyer
purchasing from those range of products. So, in case of car rentals the same thing
happens, the buyer or the customer chooses from a wide range of cars as per their
budget and rents it.
b. Service Contracts: The dealer or the contractor enters into an agreement by which the
contractor agrees to give a proper service to the customer in against for a proper
payment. The way of the service providing and the service motive is important in the
service contract. For example, Samsung Care provides its customer a wide range of
services under one roof.
The main motive of the service providers is to provide the customer a wider range of facility
under one roof. The more the services the more will be the customer attraction. Unlike others
this part doesn’t deal in bigger floor space and ownership, here the main thing is to provide
the customer with more services at a lower cost and lesser time for each job. The requirement
here is of an expertise person.
CONCLUSION
The retail sector is very big and there are as many of types of stores available in around the
globe. The main motive of each of the outlets is to provide the customer the best and satisfy
them. For doing so some of the retail outlets have been innovating themselves as a big store
in view of size and some are increasing their size in terms of products availability and also
some are there who are trying to provide customers the best service.
Based on all these types the retail outlets could be divided into 4 major categories, i.e. on
basis of size, ownership, non-store and service retailing. All these are the major part of the
daily sales and purchase. Some of them are rarely available in India, but are available
worldwide. The classification so done had made a clear-cut view for the betterment of the
customers. This could be stated that the innovative idea today could be the tradition in future.
This is clear that the biggest market today (hypermarket) was from the small idea (
departmental store), which was innovative then but now it’s a tradition or must. No retail
could have been transformed so easily without the consumer support.
So this could be stated that the classification of retails could be the easiest way to understand
the meaning of different types of the retail outlets. Even a layman could get a clear idea of
how a supermarket differs from a mall or any other big association.

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Form of retail outlet

  • 1. REPORT ON THE FORMS OF ORGANISED RETAILS IN INDIA AND IN THE WORLD PREPAIRED BY: Priyom Majumder October, 2018 This paper talks about the various forms of the retail outlets that are available in India and as well as throughout the globe. Some examples have been mentioned for the better understanding of the project. The differences among them and the similarities are also mentioned in the project work. Also a report of plagiarism is also attached to this document.
  • 2. INTRODUCTION Meaning of Retail Outlet Retail outlet is defined as a store that sells the goods in a smaller quantity. The selling could be through store, kiosk, or even by the mail or Internet. The retailers generally buys from the wholesaler in large quantities and takes advantage of heavy discount and sells them in the market with the help of certain mediums like – Internet, kiosks and even the store. Retailer acts as a medium for the wholesaler for selling the goods. Since the wholesaler purchases the products directly from the company therefore the price of the goods would be lesser. Types of Retail Outlet On the basis of their location and the way they are managed and the accountability the retail outlet can be of two major types: a. Organised Retail: In India organised retail is referred to those which are undertaken by licensed retailers, that is, those who are registered to pay sales tax, income tax, etc. The examples of these outlets could be the supermarket, hypermarket. Big Bazaar could be a good example of organised retail. They are liable to pay tax and also having proper accounts of their sales and purchase and give computer generated tax invoice. b. Unorganised Retail: These are those outlets which are run by the local households and are less likely to know the technical aspects of accountability. These outlets can’t generate a computerized tax invoice. This is a major difference between organised retail and unorganised retail. FORMS OF RETAIL OUTLETS Types of Retail Outlet based on Floor Space and Variety As already discussed organised retail outlets are those who provide the buyer with a computerized tax invoice and are accountable for paying of tax. Australian entrepreneur, Gerry Harvey, once said this about retailing: “Basically we get confused a bit about what retail is. It is really just buying things, putting them on a floor and selling them.” In the country like India where the population is a huge factor for the growth of economy, the retail business is booming one, and there are a number of retail formats. In this category we are talking about the different types of stores based on floor space and variety. They are: a. Departmental Store: Departmental store are those types of stores which offer a wide range of products under one roof. But the major difference that could be stated is the total store is divided into various departments. Today the departmental store include – clothing, furniture, house ware, gardening, toiletries, sporting goods, etc., sometimes few of them also deals in jewellery, baby products, and products for pets. Few of the
  • 3. examples of departmental store over the globe are – Arnold Constable in New York City (US), Spencer’s in Canada, Big Bazaar in India, and many more. b. Supermarket: This is referred to those stores which are self-service store and these generally deals in meat, fresh produce, dairy, and baked goods, along with shelf space reserved for canned and packaged goods and as well as non-food items such as kitchen wares, household cleaners, etc. The main difference of supermarket from the departmental store is that the departmental store is a modified version of general store, whereas a supermarket is a bigger version of departmental store with more variety of products and also with more number of products. If one could think of a huge Big Bazaar then it could be termed as Supermarket. Some of the examples of supermarket in India are Spar or Subiksha. c. Hypermarket: Sometimes known as “supercentre” or “superstore” is the one which is a combination of supermarket and a departmental store. This refers to the expansion of retail business by providing a wider range of products under one roof. It is the biggest of all. A hypermarket generally covers an area of 54000 to 161000 sq. feet. Some of the examples of hypermarket are Carrefour in Europe, Ito Yokado in Japan and Wal-Mart Supercentre in US. d. Speciality Store: Speciality store or specialist store is the one which deals in with only one type of good. The seller of the products is generally specialist of that product. For example Camera Stores, pharmacies, etc. The difference from the other three categories is that the floor space acquired by a speciality store is considerably lesser than that of departmental store, supermarket or hypermarket. e. Mall: Mall could be considered as a hybrid of departmental store and speciality store. This generally are more than 2 storied building with different stores in it dealing in some specific commodity. Reason of being it a hybrid store is, alike speciality store malls have stores that deals in a particular product and alike departmental store the departments are divided into various sections. For example DB Mall in Gwalior, M.P. (India), have stores like Titan Eye Plus as a different store dealing only in eye glasses and also having a separate section for the foods, other area allocated for foot wares. Thus, this is a hybrid or a mixture of departmental store and Speciality Store. f. Factory Outlet: This is the emerging form of business. This deals in the products that are out-dated, damaged or produced in excess of quantity. These products are further connected to the customers at a discounted price and because of this USP of this type of store, which it offers at a discounted price, customers get attracted towards it. The products are directly purchased from the factories and are sold in the market at a lower rate. One of the examples of it is Shopclues. g. Full-line discount store: These are those stores that provide goods at a discount to the customers. But the difference between this and factory outlet is that this deals in the product that have already been used. The seller wither sells the product or puts it for rent. Few examples are Aldi in Australia, Dia in Brazil and many more. h. Catalogue Showrooms: This type of showroom is generally not found in India. The store deals in a number of products and it is a self-service store. But unlike Big Bazaar and other supermarkets the products are not displayed, rather than the consumer or the buyer is given a catalogue with a number of products printed in it that
  • 4. are available with the store and they are asked to fill out the order form. Those products are brought to the sales counter, where a clerk retrieves the items from the warehouse area to payment and checkout station. Argos in UK is a good example for catalogue showroom. All of the above classifications are out of the floor space and variety of goods available in an organised retail store. Thus we could conclude up here that the organised retail outlet could be classified in five different ways based on the floor space and variety. Types of Retail Outlet based on Ownership The most important part of the organised retail is the ownership of the outlet, who owns it and the name of the outlet. The name used for an outlet effects directly on its customer attractiveness and thus profit maximizing. The retail outlets could be subdivided into the five types based on the ownership of the firm. a. Independent Retailer: As by the name suggest that the retailer is independent, that means that he/she is not dependent on any other member or person. These are those outlets that are owned by only a single individual. These types of stores offer both high risk and high returns to the owner. But most importantly this deals in a variety of products and is not a self-serviced store. The owner’s decision is the greatest risk over here. b. Chain Store: This is the form of that outlet which have their branches in more than one place in anywhere in the map. A store that shares a brand in different location is known as chain store or retail chain. The owner of the store is a single person or institution. In other words the owner of all the outlets is same. c. Franchise: This type of store or firms are generally and most likely to be seen. This are those who are been authorised by government or by a company to carry on the business by using the companies name and deal in the company’s products. The owners of this type of outlets are different. For example, if we take example of McDonald’s, the owner of the outlet in Gwalior is not the same as in Bhopal, but they are authorised to sell the products using the name of the company and this is what franchise is all about. The thin line difference of franchise from chain store is the ownership, the owner of chain stores is same for any location but in case of franchise they are different for different locations. d. Leased Departments: This can be defined as business under the premise of another business. That is one company is doing the operation within the establishment of another company. For example, the optical centres. e. Consumer Cooperative: This are the business owned by the consumers themselves for the benefit of their member. These types of business or stores generally don’t look for profit but for the service to the members. The consumer’s works with mutual consent and the decision taken are generally in majority. The major examples of these types of outlets are Mountain Equipment Co-op (MEC) in Canada, Amul in India, Lighthouse Cooperative in Philippines, and many more.
  • 5. Classification on the basis of Non-Store retail forms The companies and the owner of the business generally acquire a space for dealing in the products. But in some cases to avoid fixed cost the company uses a technique called non- store based selling. Non-Store based retail forms. They are: a. Direct Selling: This is a form of retail format that is based on B2C (Business to Consumer) format. The company’s products are directly sold to the consumers. The major medium of this type of dealing are through internet and sales person. The companies builds a platform that shows the available products of the company and then the customers chooses and proceeds for checkout and the company directly ships the product to the customer. Some of the major examples of these types of organization are Amway, Tupperware, Mi Lifestyle Marketing Global Private Limited, etc. b. Mail Order: This is a type of retail format where the buyer places their order through mail or over the phone. The company mails the catalogue with the product code to the customers and they places the order based on their demand. This is a major way of selling products now-a-days. The company sells their brochure with attractive prices to the customer and the customers are redirected to the company’s website and they purchase the product as per their needs. c. Telemarketing: Another emerging way of selling the product is to advertise the product, and its feature in the television. The most common company which deals in such kind of sales procedure is Naptol. They advertise their product and its feature and uniqueness and the customer are asked to place their order by a phone call. Therefor this is an over-the-phone dealing by the customer. The best part of the telemarketing is that it attracts potential customers. Classification based on service retailing The retail is not only dealing with physical goods but also with the service. The service industries are also a type of retail outlets, the only difference is here the emphasis is given on services rather than the products. Thus based on their working it could be classified into following categories: a. Car Rentals: Car rentals or car hire agency are those who provides with cars for a short period of time, generally ranging from few hours to few weeks. The reason of it being up here is the customer chooses from a wide range of cars and acquires it. As already mentioned retail is generally putting the products in the floor and the buyer purchasing from those range of products. So, in case of car rentals the same thing happens, the buyer or the customer chooses from a wide range of cars as per their budget and rents it. b. Service Contracts: The dealer or the contractor enters into an agreement by which the contractor agrees to give a proper service to the customer in against for a proper payment. The way of the service providing and the service motive is important in the service contract. For example, Samsung Care provides its customer a wide range of services under one roof.
  • 6. The main motive of the service providers is to provide the customer a wider range of facility under one roof. The more the services the more will be the customer attraction. Unlike others this part doesn’t deal in bigger floor space and ownership, here the main thing is to provide the customer with more services at a lower cost and lesser time for each job. The requirement here is of an expertise person. CONCLUSION The retail sector is very big and there are as many of types of stores available in around the globe. The main motive of each of the outlets is to provide the customer the best and satisfy them. For doing so some of the retail outlets have been innovating themselves as a big store in view of size and some are increasing their size in terms of products availability and also some are there who are trying to provide customers the best service. Based on all these types the retail outlets could be divided into 4 major categories, i.e. on basis of size, ownership, non-store and service retailing. All these are the major part of the daily sales and purchase. Some of them are rarely available in India, but are available worldwide. The classification so done had made a clear-cut view for the betterment of the customers. This could be stated that the innovative idea today could be the tradition in future. This is clear that the biggest market today (hypermarket) was from the small idea ( departmental store), which was innovative then but now it’s a tradition or must. No retail could have been transformed so easily without the consumer support. So this could be stated that the classification of retails could be the easiest way to understand the meaning of different types of the retail outlets. Even a layman could get a clear idea of how a supermarket differs from a mall or any other big association.