Types of Retail Stores You Will Find Today
If you compare the retail scenario now to that of the early 80’s and 90’s, you will notice a considerable difference in the type of retail stores that exist. One of the main reasons for this change is the rise of the marketing era. Retailers soon began to realize that giving customers differential experiences and […]
If you compare the retail scenario now to that of the early 80’s and 90’s, you will notice a considerable difference in the type of retail stores that exist. One of the main reasons for this change is the rise of the marketing era. Retailers soon began to realize that giving customers differential experiences and offerings is a great way to increase profits. This gave rise to different types of retail establishments that we see today. Depending on the consumers’ behavior and manufacturers’ abilities, there are various types of retail stores which exist in the market. Each of them differentiates themselves from the rest based on the products they offer and the manner in which it is offered.
7 types of retail stores
This type of retail outlets is one of the most complex types of establishments that offer a wide range of products. It can be compared to a collection of smaller retail stores managed by one company. Department stores are well-known for offering products at different pricing levels and the variety of products that they offer. Some of the common examples of department stores include Macy’s, Shoppers Stop, and Kohls.
Specialty stores are one of the popular types of retail establishments which focus on one or two specific categories of products. They are known for having a very narrow product line. A characteristic trait of customers of specialty stores is that they are generally less price-driven. These outlets specialize in a given type of merchandise like men’s clothing, children’s clothing, and sporting goods.
Supermarkets are one of the most common types of retail outlets. They are large, departmentalized, self-service stores that specialize in food and some non-food items. FMCG products are the main focus in such stores when compared to consumer durables. Product assortment is given great importance in supermarkets as the products need to be displayed in such a manner that the customer gets attracted to them and they sell faster.
Usually located in residential areas, convenience stores offer a limited range of products at premium prices due to the added value of convenience. They are generally small establishments that have limited depth in their product line. Such outlets are known for giving super-fast service with a focused approach.
As the name clearly suggests, discount stores are one of the most popular types of retail outlets that give considerable discounts on the products that they sell. Discount stores compete on the basis of low prices, high turnover, and high volume. One of the best examples of this type of a retail format is Walmart whose tagline itself says ‘Everyday low prices”.
Hypermarkets or superstores
Hypermarkets are one step ahead of supermarkets. These stores are huge in size and have many different categories under their belt. These stores are generally not found in malls, rather they are the size of malls themselves. Popular examples of this format of stores are Tesco, Asda, and Costco.
For a visual explanation on the types of retail, check out this video on YouTube:
To know more about the trends and challenges in the retail industry