Retail marketing has evolved to a phenomenal level over the last decade. This presentation describes the modern types of retailers through a scientific approach. This study also gives a glimpse of how modern retailers differentiate themselves to attain competitive advantage in the market!
5. • Type of merchandise sold
• Variety and assortment of merchandise
• Level of customer service (services offered)
• Price of the merchandise
RETAILER - CHARACTERISTICS
6. 1. The Destination Merchandise
2. The Image Enhancer
3. The Transaction Builder
4. The Traffic Builder
5. The Profit Generator
6. The Turf Protector
Source: Rick Segel & Matthew Hudson,
http://retail.about.com/od/merchandising/fl/The-6-Types-of-
Merchandise-Your-Retail-Store-Should-Always-Carry.htm
THE CONTEMPORARY 6 TYPES OF
MERCHANDISE
7. • Variety is the number of different merchandise
categories a retailer offers (breadth).
• Assortment is the number of different items in
a merchandise category (depth)
• Each different item of merchandise is called a
stock keeping unit (SKU).
VARIETY AND ASSORTMENT
8. • Customers expect retailers to provide some services--
accepting credit cards, proving parking, and displaying
merchandise.
• Some retailers go beyond this and provide other
services such as gift wrapping and home delivery, at a
charge.
• “ALL in ONE” -> Meta-services
• Product offers and customer loyalty cards
SERVICES OFFERED
9. • Offering more depth and breadth of merchandise is
appealing to customers.
• Offering services attracts customers.
• To make a profit with more depth and breadth or
services retailers must charge higher prices.
PRICE
10. 1. Department store
2. Supermarkets
3. Warehouse Retailers
4. Speciality Retailers
5. E-tailer
6. Convenience Retailer
7. Discount Retailer
TYPES OF RETAILERS (DEFINED BY
SIZE OF THE BUSINESS)
11. • The department store retailers offer products at
various pricing levels. This type of retailer adds high
levels of customer service by adding convenience
enabling a large variety of products to be purchased
from one retailer.
DEPARTMENT STORE
12. • Supermarkets have significant buying power and
therefore often retail goods at low prices.
SUPERMARKETS
13. • This type of retailer is usually situated in retail or “Business
Park” and where premises rents are lower. This enables this
type of retailer to stock, display and retail a large variety of
good at very competitive prices.
WAREHOUSE RETAILERS
14. • Specialising in specific industries or products,
this type of retailer is able to offer the
customer expert knowledge and a high level of
service.
SPECIALTY RETAILERS
15. • This type of retailer enables customers to shop online and buy
products which are then delivered. This type of retailer is
highly convenient and is able to supply a wider geographic
customer base.
• E-tailers often have lower rent and overheads, so offer very
competitive pricing.
E-TAILERS
16. • Usually located in residential areas this type of
retailer offers a limited range of products at premium
prices due to the added value of convenience.
CONVENIENCE RETAILERS
17. • This type of retailer offers a variety of discounted
products. They offer low prices on less fashionable
branded products from a range of suppliers by reselling
end of line and returned goods at discounted prices.
DISCOUNT RETAILERS