RETAIL FORMATS

SUBMITTED BY : SUBMITTED TO :
SHAURYA THAKUR (5270) DR. PAWAN KUMAR GARGA
RAJAT SINGH (5250) PROFESSOR
ARYAN PANT (5216) HPUBS
 INTRODUCTION
 The word retail is derived from French words “re” and “tailer”
whose meaning is to “cut again”. Retailing involves various
activities to sell to end consumers for their non-business and
personal use.
 The meaning of retailing is to sell goods from a fixed location
such as from kiosk, departmental store, or by post. 
 A retailer purchase goods from an importer or manufacturer
directly or through a wholesaler to sell small portions of
goods to final-consumers.
 Retail format is basic structure of a retail business thought of ,
designed and developed so as to provide to the needs of end
consumers.
 RETAIL CONCEPTS
 Retail mix : It can be defined as the combination of elements
the retailer uses to satisfy customer needs. The 4 basic
elements of the retail mix are :
1. Types of goods offered
2. Variety and assortment of goods
3. Level of customer service
4. Price strategy followed

 Variety of goods : It refers to the number of goods category

a retailer offers.
 Assortment of goods : It refers to the number of different
items in a goods category.
 EVOLUTION OF RETAIL
FORMATS
 Retailing in India started in the form of weekly haats , mandis
and village melas. These served dual purpose of providing to
daily necessities and also entertainment.
 With the emergence of towns and cities , the neighbourhood
kirana stores became popular.
 The first phase of mordern retail in India started in 1990’s
with the arrival of department stores.
 The second phase of growth was post 2005 when
hypermarkets , supermarkets and conveniance stores started.
 In 2008-10 major growth took place as mordern retailing
became popular. Many malls and speciality stores were
launched .
 2010 saw entry of many international players, remodelling of
existing formats and change in the Indian shopping basket.
 Over the last decade there is a phenomenal change in the
retailscape of India and new retail formats have emerged.
 Online retail and buying via the mobile phone have become
quite popular among the Indian consumers.
CLASSIFICATION OF RETAIL
FORMATS
 Store based : By far the predominant method consumers use
to obtain products is to acquire these by physically visiting
retail outlets (a.k.a. brick-and-mortar).  Store based retail
outlets can be further divided into several categories :
i. Ownership based
1. Independent retailers : They own and run a single shop, and
determine their policies independently. Their family members
can help in business and the ownership of the unit can be
passed from one generation to next. The biggest advantage is
they can build personal rapport with consumers very easily.
2. Chain Stores : When multiple outlets are under common
ownership it is called a chain of stores. Chain stores offer and
keep similar merchandise. They are spread over cities and
regions. The advantage is, the stores can keep selected
merchandise according to the consumers’ preferences in a
particular area.
3. Franchises : These are stores that run business under an
established brand name or a particular format by an
agreement between franchiser and a franchisee.
They can be of two types :
 Business format.
For example, Pizza Hut.
 Product format.
For example, Ice cream parlors of Amul.
4. Consumers Co-Operative Stores : These are businesses
owned and run by consumers with the aim of providing
essentials at reasonable cost as compared to market rates.
They have to be contemporary with the current business and
political policies to keep the business healthy.
ii. Merchandise based
1. Convenience Stores : They are small stores generally
located near residential premises, and are kept open till late
night or 24×7. These stores offer basic essentials such as
food, eggs, milk, toiletries, and groceries. They target
consumers who want to make quick and easy purchases.
2. Supermarkets : These are large stores with high volume and
low profit margin. They target mass consumer and their
selling area ranges from 8000 sq.ft. to 10,000 sq.ft. They offer
fresh as well as preserved food items, toiletries, groceries and
basic household items. Here, at least 70% selling space is
reserved for food and grocery products.
3. Hypermarkets : These are one-stop shopping retail stores with
at least 3000 sq.ft. selling space, out of which 35% space is
dedicated towards non-grocery products. They target
consumers over large area, and often share space with
restaurants and coffee shops. The hypermarket can spread
over the space of 80,000 sq.ft. to 250,000 sq.ft. They offer
exercise equipment, cycles, CD/DVDs, Books, Electronics
equipment, etc.
 SPECIALTY STORES
 These retail stores offer a particular kind of merchandise such
as home furnishing, domestic electronic appliances, computers
and related products, etc.
 They also offer high level service and product information to
consumers.
 They occupy at least 8000 sq.ft. selling space.
 For Example, Ikea, Croma, etc.
 DEPARTMENTAL STORES
 A Department Store is a retail establishment offering a wide
range of consumer goods in different product categories
known as “departments”
 It is a multi-level, multi-product retail store spread across
average size of 20,000 sq.ft. to 50,000 sq.ft. It offers selling
space in the range of 10% to 70% for food, clothing, and
household items.
 For example, The Bombay Store, Marks & Spencer from UK,
Big Bazaar, D-mart, etc.
 FACTORY OUTLETS
 These are retail stores which sell items that are produced in
excess quantity at discounted price. These outlets are located
in the close proximity of manufacturing units or in association
with other factory outlets.
 For example, Nike, Bombay Dyeing factory outlets, etc.
 CATALOGUE SHOWROOMS
 Catalogue showroom usually refers to retail outlets which deal
in hard goods like electronics,  jewellery,  house ware, etc.
 These retail outlets keep catalogues of the products for the
consumers to refer. The consumer needs to select the product,
write its product code and handover it to the clerk who then
manages to provide the selected product from the company’s
warehouse.
For example, Argos from UK. India’s retail
HyperCity has joined hands with Argos to
provide a catalogue of over 4000 best
quality products in the categories of
computers, home furnishing, electronics,
cookware, fitness, etc.
NON-STORE BASED RETAILING
 It is the form of retailing where the retailer is in direct contact
with the consumer at the workplace or at home. The consumer
becomes aware of the product via email or phone call from the
retailer, or through an advertisement on the television, or
Internet.
 The seller hosts a party for interacting with people. Then
introduces and demonstrates the products, their utility, and
benefits.
 The success of non-store based retailing hugely lies in timely
delivery of appropriate product
 Non-Store based retailing includes:
 DIRECT SALES
 It consist of making direct contact with the end consumers at
home, at work, at the office or at any convenient place.
 Highly interactive form of retailing
 Cosmetics, Jewellery, Garments, Food, Home Appliances are
sold directly to customers.
 E.g. Amway, Herbalife, Tupperware, etc.
 MAIL ORDERS/POSTAL
ORDERS/E-SHOPPING
 The consumer can refer a product
catalogue on internet and place
order for purchasing the product
via email/post.
 For Example, Amazon, Flipkart
etc.
 TELEMARKETING
 The products are advertised on the television. The price,
warranty, return policies, buying schemes, contact number etc.
are described at the end of the Advertisement.
 The consumers can place order by calling the retailer’s
number.
 The retailer then delivers the product at the consumer’s
doorstep.
 For example, Asian Sky Shop, etc.
AUTOMATED VENDING/KIOSKS
 It is a form of non-store retailing where
products or services are placed in a
machine and are dispensed to customers
when they deposit cash or use plastic
money(credit or debit cards)
 Vending machines offer consumers
greater convenience 24 hours a day, and
have replaced many services formally
requiring a human interface.
 Popular in soft-drinks, candies etc. along
with bank ATMS.
 SERVICE BASED
RETAILING

 These retailers provide various services

to the end consumer. The services
include banking, car rentals, electricity,
and cooking gas container delivery etc.
Service retailer refers to a retailer, whose
product line is actually a service, including
hotels and motels, banks, airlines, colleges,
hospitals, movie theaters, tennis clubs
browsing alleys, restaurants, repair
services, hair salons, and dry cleaners.
TYPES OF SERVICE RETAILERS
 The fundamental to all service retailers’ businesses is
customer service.
 A service retailer protects customer loyalty and offers the
customers their best service so that they have outstanding
retail experience.
 These retailers can be mainly of three types based on the form
of service they are providing.
 1) Full-Service:
 2) Assorted-Service
 3) Self-Service:
  FULL-SERVICE

 These retailers provide support to customers at each

touch-point of the total shopping process.
 It is not just limited to the area of personal interaction
and also offers service type making the overall shopping
experience easier in the following ways:
• To accept multiple payment forms such as debit card,
credit card, check, and cash.
• To offer delivery services

• To provide demonstrations or make recommendations,

such as to offer product samples, cooking classes, or
recipes.
• To allow returns or exchanges

• To allow special orders

 Apple ensures that all its retail store
employees are trained properly to handle the
customer queries .It is considered as pioneer
in many aspects of customer service as it
provides a plethora of information to the
consumers about the product thus helping
them in making an informed decision. The
store employees assist the consumers in
every phase of their buying process.

 InIndia, Tata’s Chroma retail stores provides

full service ,chroma’s sales force are well
trained and known for their customer service
 ASSORTED-SERVICE
 Most service retailers provide some level of service to
customers.
 Services include managing the purchase-point transaction,
assistance in product selection, offering delivery, arranging
payment plans, and the like.
 SELF-SERVICE
 These retailers allow customers to perform all or
most of the services related to retail purchasing.
 Some customers view self-service as a benefit,
but others may take it as inconvenient.
 There are two types in self-service method

 1) self-selection services, such as vending

machine purchases or supermarket purchasing
 2) self-checkout services where the in store
employee help the consumer in selecting the
product but checkout process needs to be carried
out by the consumer
 PRODUCT RETAILING VERSUS
SERVICE RETAILING
Product Retailing Service Retailing
Quality and cost are prime factors in the Timeliness and nature of people
success of product retailing. involved in service retailing are
crucial factors in the success.
Product retailer and consumer Service provider and customer
relationship is established only if the relationship is established right
consumer frequently visits the outlet. from start.
Products can be stored in outlet while Services are intangible hence
retailing. cannot be stored while retailing.
Product retailing can be standardized. Service retailing cannot be
standardized as it highly depends
upon the human entities involved.
In product retailing, the ownership of the In service retailing, there is no
purchased product can be transferred transfer of ownership. The
from owner to consumer after transaction. consumer can only access the
service.
 CASE STUDY
 Urban Company was launched in November 2014 in, Delhi with
the name UrbanClap.
  It offers services like home beauty, wellness services,
and maintenance and repair services, home installation, Also
fitness, and Yoga services at home.
 The story of Urban Company, One of India’s biggest startups began
when Abhiraj Bahl and Varun Khaitan left their job in Boston
Consulting Group in the USA to launch their own Company in 2013.
Their fellow founder left Twitter Inc around the same time and
returned to India to learn about being an entrepreneur.
 The three of them decided to start their own business together with an
initial investment of 10 Lakhs Each. 
 In July 2019, Urban Company partnered with National Skill
Development Corporation to provide training under upskilling
programs and short-term skilling to 30,000 service professionals.
 In just five years, Urban Company expands its business to three
other countries the UAE, Singapore, and Australia. Gathered
almost 25,000 trained professionals across these countries, who
already served 5 million households so far.
 The company’s main goal as of now is to go global, this
opportunity comes at a time when the marketplace for horizontal
gigs is rising.
 It has not only become the most popular home services app and
the go-to for all Indians but it has also started spreading its wings
to other countries with great opportunities like Dubai where it has
recently been working to provide its services to customers
efficiently.
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