Retail Formats

What is Retailing all about?

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Reaching out to consumer first hand Various formats to suit consumer needs Fulfill their need every time Give them true shopping value in term of right goods and services at right place in right quantities , types and sizes at right price and at right time.

Retail Formats

Defined by Marketplace Defined by Customer Mediation

Trends in Retail Industry

Growing Diversity in Retail Formats
Over the past 20 years many new retail formats have been developed . Consumer now can purchase the same merchandise from various types of retailers. 2. The new types of retailers coexist with the traditional retailers. Each type of retailer provide different type of benefits. So consumer can choose different retailer for different type of purchase. Examples: Amazon, Tesco: Extra, Food retailing, Gas station and convenience store, Hypermarkets, Superstores etc.
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Trends in Retail Industry

Increasing Industry Concentration Increase in different formats have reduced the competition within each format Few retailers dominate the most formats like Wal-mart, Kmart, Target control 85% sales in USA.

Trends in Retail Industry

Globalization Retailing was a local business, where stores were owned and operated by people living in the community and local people were customers. Today some retailing concepts those were successful in their country have gone global.

Trends in Retail Industry

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Globalization Main factors of Globalization are: Maturation of domestic market Skills and systems Removal of trade barriers ( WTO, NAFTA, ASEAN, EU)

Examples: Carrefour, McDonald, KFC, IKEA

Various Terms in Retailing

Variety Variety is number of merchandise categories a retailer offers. Assortment The number of different items in a merchandise category. Stock Keeping Unit: Each different item of merchandise is called SKU

Various Terms in Retailing

Variety is often referred as breadth of merchandise carried by a retailer Assortment is referred as depth of merchandise carried by a retailer.

Store format by location

Chain Store Format Multi location Owned and operate by same organization Common store presentation and design Same merchandising plan Same promotional and service strategy Examples: Chen one / KFC / McD/Pizza Hut

Store format by location

High Street Format Retail chain store located in busy shopping areas Less than 2000 sft. with no parking facility Destination format : Independent retail store Located in particular area Shopping only stores Huge parking area Wide merchandising categories

Store format by location

Convenience Store : Less than 5000 sft Extended operation hours Mostly foods and household stuff

Store format by Ownership

Franchise format Retail store owned and operated by individuals on behalf of ( and licensed by) the large supporting organization Independent store format Owned and operated by a single person or a partnership , not the part of large retailer.

Store formats

Conventional Supermarket : Naheed Supermarket, Imtiaz Store Hypermarkets : Hyper Star, Giant, Makro
200,000 sft Many merchandise General items , flowers, food , kitchen items

Store formats

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General Merchandise Retailers Discount store : Specialty Store :KHAADI. AMIR ADNAN, JAFFERJEES A home improvement center Department store :IDEAS by Gul Ahmed, CHEN ONE, HABITT Drug Stores Off Price retailers Kiosk

Non Store formats

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Electronic Retailing Catalog and Direct Mail Retailing General merchandise catalog retailer Specialty catalog retailers Direct Selling Television home shopping Vending machine Retailing

Store Format: Factors to be considered

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Efficient and ideal Formats mix ensure: High profitability Efficient rollout Higher customer satisfaction and shopping opportunity To cater for all customers need Healthy competition Better positioning More value for customers