6 Different Types Of Retail Stores.

The retail market is divided into several distinct stores that offer different products, levels of service, and prices depending on the target market!

FREMONT, CA: A department store has numerous departments or sections, each carrying a different product line. In addition, the department store carries various shopping and specialty goods, including apparel, cosmetics, housewares, etc. Purchases are generally made within each department.

Each department is considered a separate buying center. Each department is led by a buyer or department head who chooses the merchandise for his department and is also accountable for promotion and personnel.

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To keep a uniform image, the store management sets broad policies about the types of merchandise carried and price ranges. The store management is also responsible for the overall advertising program, credit policies, customer service, etc. National chains own most department stores.

Department stores are under attack. Customers have become cost conscious. Specialty retailers, discounters, and catalog outlets offer superior merchandise selection, better pricing and greater convenience to take sales away from department stores.

Many manufacturers are opening their stores, and discounters are upgrading their merchandise, removing sales from department stores. In reply, department stores are repositioning as specialty outlets. They are divided into mini-boutiques, each highlighting a different product category, as specialty stores do. They are also elevating their service to move the attention away from price.

1. Specialty stores:

These stores focus their merchandise on specific target markets. The store specializes in providing merchandise such as children’s clothing, men’s clothing, sporting goods, etc. A specialty store carries a deeper but limited merchandise assortment than a department store.

The knowledgeable sales personnel of these stores offer better customer service. The format has turned very popular in the apparel market. Customers generally consider price to be secondary in specialty outlets.

The unique merchandise, the store’s physical appearance and the caliber of the staff determine its popularity. Due to their attention to the customer and limited product line, manufacturers often favor introducing new products in small specialty stores before presenting them to greater retail and department stores. Small specialty stores also provide a low-risk testing ground for many new products.

2. Supermarkets:

Supermarkets are large, departmentalized, self-service stores specializing in food and some non-food items. Supermarkets are declining sales because dual-income families eat out more and prefer prepared foods.

There is growth in the distinctive food market due to the increased number of working women. Due to the lack of time, they are willing to pay for convenience and time-saving products and prefer one-stop shopping. Supermarkets have responded by expanding the size of their operations to satisfy the customer need for variety, convenience and service.

These superstores offer one-stop shopping for foods and non-food services, including pharmacies, flower shops, dry cleaning services, in-store bakeries, video rentals, takeout food sections, sit-down restaurants, etc.

3. Convenience stores:

Convenience stores are miniature supermarkets bearing only a limited line of high-turnover convenience goods. These self-service stores are situated near residential areas and are public for long hours. Customers pay the fee for the convenience of location, long hours and quick services. Because of competition from supermarkets and discount stores, these stores are extending their offering of non-food items.

4. Discount stores:

A discount store competes based on low prices, high turnover and high volume. There are two types of discounters.

Full-line discounters or mass merchandisers:

These stores offer limited service and carry a broad assortment of well-known national brands of hard goods like housewares, toys, hardware, sporting goods, clothing, bedding, linen, etc. In addition, some convey limited non-perishable food items, like soft drinks and canned food. The retailing strategy is to employ moderate to low prices on large quantities of merchandise and lower service to get a high turnover of products.

Specialty discount stores:

Specialty discount stores sell a single line, such as sporting goods, electronics, office supplies, toys, etc. These stores provide a nearly complete selection of single-line merchandise and use self-service, discount prices, high volume and high revenue. Home Depot and Staples are famous category killers.