Departmental store

• A departmental store is a large retail store that sells a wide range of products in a single
building

Features
• Central location
• large size
• wide range of goods
• Specialization
• Amenities and services
• Centralized management
• Extensive advertising

Advantages

•Bulk purchase economies:

Department stores save money on price, transportation, and trade discounts when they buy
large quantities of merchandise.

•One-stop shopping:
Department stores offer the greatest purchasing convenience.

Limitation

•High operating cost:

Department stores have high operating costs due to the various services they offer.

•High possibility of loss:

Department stores have a high possibility of loss due to large-scale operations.
EXAMPLES:

•K 7 Super Store
•D MART
•MD MART
Chain store

A chain store is a retail business that is owned and operated by a single management company.
Chain stores are a series of identical shops that are located in many different places.

Features:

• Large-scale retailing: Chain stores are focused on large-scale retailing.

• Same products and services: Chain stores offer the same products or services at all locations.
• Same management: Chain stores are managed by the same organization.
• Same merchandising strategies: Chain stores use the same merchandising strategies at all
locations.
• Same display: Chain stores have the same display at all locations.

Advantages :

Lower Costs:
Buying goods in large quantities from suppliers allows for discounted prices, resulting in lower
operational costs per unit sold.

Centralized Management:
A single management team oversees all stores, ensuring consistent quality, marketing
strategies, and operational efficiency.

Wide Market Reach:

Multiple stores in different locations provide access to a broader customer base.

Brand Recognition:
A consistent brand image across all stores builds customer loyalty and trust.
Marketing Efficiency:
Advertising campaigns can be centrally planned and executed across all outlets, maximizing
reach.

Research and Development:

New products or marketing strategies can be tested in one store and then implemented across
the chain.

Limitation :

Limited product range:

Chain stores typically focus on selling a standardized product line across all branches, which
can limit customer choice compared to smaller local stores with more diverse offerings.

Lack of personal service:

Due to standardized operations, employees in chain stores might not be able to provide
personalized attention to customers like smaller shops.

Difficulty in adapting to local needs:

If a chain store's product range doesn't align with the specific demands of a particular location, it
can lead to poor sales.

Lack of initiative from branch managers:

As decisions are often made at the head office, branch managers might not have the freedom to
make local adjustments or take initiative.

Potential for inconsistency in service:

Different branches of the same chain store might offer varying levels of customer service,
depending on local management and staff.

EXAMPLES:

•Wal-Mart
•Target
•Big Bazaar
Franchise

A franchise is a business arrangement where a franchisee pays a franchisor for the rights to use
the franchisor's brand and business model. The franchisee then sells products or services under
the franchisor's name.

how it works:

•The franchisor provides the brand name, logo, and operational structure.

•The franchisee pays an initial fee and ongoing royalties to the franchisor.

•The franchisee may also be required to follow standardized operating procedures.

•The franchisee may receive a percentage of the profits.

Examples :

•McDonald's
•KFC
•Domino's,
•Subway
•Pizza Hut.
Mail order Houses

"mail order house," which is a retail business that sells products directly to customers through
mail, primarily by sending out catalogs with product details, and then delivering the goods once
the customer places an order by mail.

Key points:

No physical store:
Customers don't visit a physical store to shop; they browse and order products through catalogs
sent by mail

Wide reach:
This method allows businesses to reach a large customer base across a wide geographical
area.

Suitable products:
Mail order houses typically sell standardized products that are easy to describe and transport
through mail, like clothing, electronics, or books.

How it works:

Catalogs:
The company sends out catalogs with product descriptions, images, and prices to potential
customers.

Order placement:
Customers select the desired items, fill out an order form, and send it back through mail.

Delivery:
The goods are then shipped to the customer's address via postal service.

Examples:

• flipkart
• Amazon
Supermarket

A supermarket is a large retail store that sells food and household items on a self-service basis.
Supermarkets are a key part of the supply chain for perishable goods.

Characteristics of supermarkets

Size:
Supermarkets are large retail organizations that are often located in shopping centers.

Selection:
Supermarkets offer a wide range of products, including food, beverages, and household items.

Self-service:
Supermarkets are self-service stores, so there are no sales assistants or counters.

Low prices:
Supermarkets use mass displays of goods and low prices.

Convenience:
Supermarkets are convenient and affordable.

Supply chain:
Supermarkets are a central part of the supply chain for perishable goods.
Benefits of supermarkets

Convenience:
Supermarkets offer convenience and affordability.

Variety:
Supermarkets offer a wide variety of products.

Job opportunities:
Supermarkets create local job opportunities.

Supply chain:
Supermarkets help reduce inefficiencies and lower costs in the supply chain.

EXAMPLES:

• D mart
• Big bazaar
• Reliance Fresh
Shopping malls

A "shopping mall" is a large building that houses various shops selling different types of goods
under one roof, offering a convenient way to shop for clothes, electronics, food, and more all in
one place, usually with features like a food court and sometimes entertainment options like
movie theaters; essentially, it's a big complex with many stores together.

Key points about shopping malls:

Variety of shops:
You can find many different kinds of stores in one mall, including clothing stores, electronics
shops, bookstores, toy stores, and more.

Food court:
A designated area where people can eat from different restaurants.

Air-conditioned environment:
Most malls are climate-controlled for comfort.

Entertainment options:
Some malls include movie theaters, gaming centers, or play areas for children.

Large parking space:

Ample area to park your car.

Advantages

Convenience:
Malls offer a variety of products in one place, which can save time and reduce the need to travel

Variety:
Malls offer a wide selection of products from many different stores

Comparison shopping:
Malls allow customers to easily compare products from different brands

Parking:
Malls often have their own parking facilities

Entertainment:
Malls may have entertainment zones, special events, and promotions

Climate control:
Malls may be climate-controlled

Free Wi-Fi:
Some malls offer free Wi-Fi

Dining:
Malls may have dining options

Disadvantages

Competition:
Malls can have high competition, especially if there are similar stores nearby

Occupancy costs:
Malls can have higher occupancy costs than other retail formats

Rent costs:
Malls can have higher rent costs, especially in popular malls

Maintenance:
Some malls may need more maintenance, which can make them less attractive to shoppers

Operating hours:
Retailers in malls may have to follow the mall's operating hours, including holidays

Signage and display rules:

Retailers in malls may have to follow strict rules around signage and displays

Examples :

•VR Mall
•Rahul Raj Mall
•Central Mall
Supermarket

A supermarket is a large retail store that sells food and household items on a self-service basis.
Supermarkets are a key part of the supply chain for perishable goods.

Characteristics of supermarkets

Size:
Supermarkets are large retail organizations that are often located in shopping centers.

Selection:
Supermarkets offer a wide range of products, including food, beverages, and household items.

Self-service:
Supermarkets are self-service stores, so there are no sales assistants or counters.

Low prices:
Supermarkets use mass displays of goods and low prices.

Convenience:
Supermarkets are convenient and affordable.

Supply chain:
Supermarkets are a central part of the supply chain for perishable goods.
Benefits of supermarkets

Convenience:
Supermarkets offer convenience and affordability.

Variety:
Supermarkets offer a wide variety of products.

Job opportunities:
Supermarkets create local job opportunities.

Supply chain:
Supermarkets help reduce inefficiencies and lower costs in the supply chain.

EXAMPLES:

• D mart
• Big bazaar
• Reliance Fresh

Mail order Houses

"mail order house," which is a retail business that sells products directly to customers through
mail, primarily by sending out catalogs with product details, and then delivering the goods once
the customer places an order by mail.

Key points:
No physical store:
Customers don't visit a physical store to shop; they browse and order products through catalogs
sent by mail

Wide reach:
This method allows businesses to reach a large customer base across a wide geographical
area.

Suitable products:
Mail order houses typically sell standardized products that are easy to describe and transport
through mail, like clothing, electronics, or books.

How it works:

Catalogs:
The company sends out catalogs with product descriptions, images, and prices to potential
customers.

Order placement:
Customers select the desired items, fill out an order form, and send it back through mail.

Delivery:
The goods are then shipped to the customer's address via postal service.

Examples:

• flipkart
• Amazon
Franchise

A franchise is a business arrangement where a franchisee pays a franchisor for the rights to use
the franchisor's brand and business model. The franchisee then sells products or services under
the franchisor's name.

how it works:

•The franchisor provides the brand name, logo, and operational structure.

•The franchisee pays an initial fee and ongoing royalties to the franchisor.

•The franchisee may also be required to follow standardized operating procedures.

•The franchisee may receive a percentage of the profits.

Examples :

•McDonald's
•KFC
•Domino's,
•Subway
•Pizza Hut.
Chain store

A chain store is a retail business that is owned and operated by a single management company.
Chain stores are a series of identical shops that are located in many different places.

Features:

• Large-scale retailing: Chain stores are focused on large-scale retailing.

• Same products and services: Chain stores offer the same products or services at all locations.
• Same management: Chain stores are managed by the same organization.
• Same merchandising strategies: Chain stores use the same merchandising strategies at all
locations.
• Same display: Chain stores have the same display at all locations.

Advantages :

Lower Costs:
Buying goods in large quantities from suppliers allows for discounted prices, resulting in lower
operational costs per unit sold.

Centralized Management:
A single management team oversees all stores, ensuring consistent quality, marketing
strategies, and operational efficiency.

Wide Market Reach:

Multiple stores in different locations provide access to a broader customer base.

Brand Recognition:
A consistent brand image across all stores builds customer loyalty and trust.
Marketing Efficiency:
Advertising campaigns can be centrally planned and executed across all outlets, maximizing
reach.

Research and Development:

New products or marketing strategies can be tested in one store and then implemented across
the chain.

Limitation :

Limited product range:

Chain stores typically focus on selling a standardized product line across all branches, which
can limit customer choice compared to smaller local stores with more diverse offerings.

Lack of personal service:

Due to standardized operations, employees in chain stores might not be able to provide
personalized attention to customers like smaller shops.

Difficulty in adapting to local needs:

If a chain store's product range doesn't align with the specific demands of a particular location, it
can lead to poor sales.

Lack of initiative from branch managers:

As decisions are often made at the head office, branch managers might not have the freedom to
make local adjustments or take initiative.

Potential for inconsistency in service:

Different branches of the same chain store might offer varying levels of customer service,
depending on local management and staff.

EXAMPLES:

•Wal-Mart
•Target
•Big Bazaar
Departmental store

• A departmental store is a large retail store that sells a wide range of products in a single
building

Features
• Central location
• large size
• wide range of goods
• Specialization
• Amenities and services
• Centralized management
• Extensive advertising

Advantages

•Bulk purchase economies:

Department stores save money on price, transportation, and trade discounts when they buy
large quantities of merchandise.

•One-stop shopping:
Department stores offer the greatest purchasing convenience.

Limitation

•High operating cost:

Department stores have high operating costs due to the various services they offer.

•High possibility of loss:

Department stores have a high possibility of loss due to large-scale operations.
EXAMPLES:

•K 7 Super Store
•D MART
•MD MART