Académique Documents
Professionnel Documents
Culture Documents
Retail Formats
Faiza Nasir
Retail formats?
Merchandise’s Division
ProductWidth
Product Length
Product Depth
SKUs?
A common term for a unique numeric identifier, used to refer to a
specific product in inventory or in a catalog.
Prices:
Location:
Average to
Neighborhood
Above average
Atmosphere &
Merchandise: Services:
Medium width Average
and low depth
of assortment; Promotion:
average quality Moderate
Store Formats by Ownership
a) Independent
Generally higher level of independent retailers exists
50% of these are run by owners and their families
Why so many? Ease of entry
b) Franchise:
A contractual agreement between a franchisor and a retail
franchisee, which allows the franchisee to conduct business
under an established name and according to a given
pattern of business
Franchisee pays an initial fee and a monthly percentage of
gross sales in exchange for the exclusive rights to sell
goods and services in an area
Competitive State of Independents
Advantages Disadvantages
Flexibility in formats, Lack of bargaining
locations, and strategy power
Control over investment Lack of economies of
costs and personnel scale
functions, strategies Labor intensive
Personal image operations
Consistency and Over-dependence on
independence owner
Strong entrepreneurial Limited long-run
leadership planning
Competitive State of Franchising
Advantages Disadvantages
small capital required oversaturation could
acquire well-known occur
names franchisors may
operating/management overstate potential
skills taught locked into contracts
cooperative marketing agreements may be
possible cancelled or voided
exclusive selling rights royalties are based
less costly per unit on sales, not profits
From the Franchisor’s Perspective
Prices:
Competitive to
Above average
Merchandise:
Very narrow width and Atmosphere and
extensive depth of Services:
assortment; average to Average to excellent
good quality
Promotion:
Heavy use of displays
Extensive sales force
Department Store Strategy Mix
Location: Prices:
Business district, shopping Average to
center or isolated store Above average
Atmosphere and
Merchandise: Services:
Extensive width and Good to excellent
depth of Promotion:
assortment; average to Heavy ad and catalog
good quality use; direct mail;
personal selling
Conventional Supermarket
Strategy Mix
Location: Prices:
Neighborhood Competitive
Prices:
25% or more below
MRP
Merchandise:
Extensive width and Atmosphere/ Services:
depth of Slightly below
assortment; average to average to average
good quality (overruns,
irregulars, cut-sizes) Promotion:
Heavy on newspapers;
price-oriented; selling
Factory Outlet Strategy Mix
Prices:
Very Low
Merchandise:
Moderate width and Atmosphere/ Services:
poor depth of Very low
assortment;
low continuity (cancelled
orders, discontinued Promotion:
merchandise) Little
Warehouse Store Strategy Mix
Location:
Prices:
Secondary site, often in
Very low
industrial area
Atmosphere and
Merchandise: Services:
Moderate width and Low
low depth of
assortment; emphasis on
manufacturer brands Promotion:
bought at discount Little or none
Store Formats by Concessions
a) Stopover store format
Like petrol pump, offers instant use or ready-to-eat categories of
merchandise.
b) Kiosk:
Small freestanding pavilion
c) Alliances:
With brands that customers trusts
Bazaars?
Seasonal
Structured
Un-structured
Thematic
Scalability and
its importance