Classification of Retail Formats, Key Features, Advantages and Disadvantages
Retail Formats can be classified into the following categories:
Store Based: Store based formats can be further classified into two formats based on the basis of Ownership or Merchandise offered.
Non Store Based Classification: Non Store retail organizations focus on establishing direct contact with the consumer. This may be both personal (direct personal selling) and nonpersonal TV, the Internet, mail, catalog or phone).
Service Based Classification: Such retailers specialize in providing different kinds of services to the end consumer. The services can be classified as Banking Services, Rentals, Electricity, cooking gas, etc. Various factors like quality of service, how much customization can be provided for meeting the client specific requirements, the uniqueness of the service and delivery within the timelines, usage of innovative technology, etc, are given importance for determining the success of service.
Classification of Retailers on the Basis of Ownership
Key Features of Chain Stores: When 4 or more than four stores manage the same merchandise under the central ownership and usually receive their supplies from a central warehouse. The Chain stores in Europe are equally called as Multiple Shops, unlike America where it is regarded as Chain Stores. The main objective of Chain Store system is to approach the maximum number of customers by expanding operations across a larger territory, but with a concentration on selling the same merchandise.
In Indian context organizations such as BATA and Usha Lexus operate chain stores across the country. These organizations offer varieties or various model variants of a single product, and the buying is centralized, but selling is decentralized.
Salient Features are given below
Advantages of Chain Stores
Limitations of Chain Stores
Features of Departmental Stores
Departmental Stores can be either classified on the ownership basis or income groups. The key features of Departmental Stores are given below:
Advantages of Departmental Stores
Disadvantages of Departmental Stores
Features of Super Markets
Advantages of Super Markets
Disadvantages of Super Markets
Advantages of Direct Selling
Limitations of Direct Selling
Authorship/Referencing - About the Author(s)
The article is Written By Prachi Juneja and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.