Think: Suppose yourself working in retail. In what kind of a retail business would you like to work in?
We have mentioned above that retail is a huge sector with great number of companies and these companies are in competition and in co-operation with one another at the same time. The variety of the retail business and the way it functions is mainly the reason why retail business is lively, and thus a very interesting sector to work in.
Thanks to this variety, the retail business offers a very diverse field of work in small, medium and large retail companies. The size of the company does not change the order in which individual tasks are carried out, only the number of employees that carry out the tasks differs. The nature of the job does not change according to the company that you work or want to work in.
We know that not every business sells its own brands. Very often, the same goods and brands are available in many different shops. This makes it important for a shop to differentiate itself from others by making itself more preferable for the customer to shop in.
A retailer company can achieve desirable attractiveness through various means, such as the furnishing (decoration, lighting, coloring, music, etc.) of the salesroom, the range of the goods that are offered, the services provided, and the location itself. According to these criteria, retailers can operate in many forms.
Criteria 1: The Store Environment
· Traditional store
· E-Commerce
In addition to traditional retail, that is, the stores of different kinds, e-commerce is another form of retail which has been growing more and more popular in the recent years. Since e-commerce has become a big part of the retail world, products can be bought via the internet whether through the company’s online services or on specialized e-commerce websites. In e-commerce, besides online sales, online and offline sales can be integrated according to company policies. Some retailers do only exist on-line such as Amazon, Alibaba, etc. Some retailers have both online and conventional stores, such as Carrefour or Walmart.
Criteria 2: Product Range
· Food products
· Consumer durable goods: appliances, electronics, furniture, etc.
· Other goods: cosmetics, clothing, footwear, etc. According to the product range, shops are named as:
o Specialty stores: they offer a few product groups but with a broad selection
o Supermarkets: they offer lots of food products with a broad selection
o Department stores: they offer a wide range of consumer goods from many lines of business. Its various departments correspond with special shops, cash desks and service provided in each department.
Criteria 3: Services
· Self-service: Customers select their own product and usually do not need assistance during the selection process. For example, in supermarkets, fast food restaurants, etc.
· Service-based: Customers receive direct services from the retailer or need information and demonstrations about the products. They also may need help in making a decision to purchase and with packaging the goods.
Criteria 4: Location
· In shopping malls: stores may be located in shopping malls.
· On streets: They can also be located on the streets for customers to shop in.
· Vendors: Retailers who sell products without a permanent store. They are mobile.
Criteria 5: Size
· Retailers can also be grouped by the size of their operation
· Large-scale retailers: they operate in big shops and offer a wide range of goods. For example: department stores, hypermarkets, and shopping malls.
· Small-scale retailers: they operate in small shops. They cannot offer a wide range of products. They can also specialize in certain products. For example grocery shops, specialty shops, and independent small retailers.
Criteria 6: Management & Ownership
· Chain stores: owned by the same company, the stores have the same name and basic appearance as other stores within the same chain, and sell the same kind of goods and services. They may also share the same management.
· Franchise: conducting business under the brand of a company that granted the license to them. For example: McDonalds, Starbucks.
· Independent retailers: Un-organized, small retailers. Sell products which are bought very often, e.g. food, beverages, cigarettes, newspaper etc. They may also specialize in certain products, like liqueur or cashmere. For example: small grocery shops and boutiques.
Criteria 7: Others
· Hypermarkets: sell products of various lines, mainly focused on daily consumer goods.
· Outlets: offer low-priced purchases from previous seasons, mainly fashion and textile.
· Discount stores: value for money is the priority. They offer a narrow product range, especially food products, at low prices.
From time to time there are different trends in retail. The trends change due to customer needs and behavior. The latest trends have been:
· Complementing the retailer store with other services: opening bank branches (desks) inside supermarkets, or food departments (shops) inside gas stations, or cafés inside department stores, etc.
· Development of retail without stores: customers receive offers via mail, television broadcasting, and computers or by phone calls, and can give instant response to these offers from their computers and phones.
· Increasing competition: Today competition between the various types of stores is increasing. Discount stores, mail order companies and department stores are competing for the same customers. Also the competition between chain superstores and smaller independent stores are ruthless.
· Increase in the significance of technologies: companies, using their remarkable information systems, achieve a much faster and more economical supply management. Thanks to the efficient use of these technologies, retailers get access to customers more quickly and directly.
· Retail stores as meeting and socializing places: recently developing store formats offer entertainment, eating and drinking facilities all together, for that very reason, they are also becoming places for socializing.
Think: What kind of shop you would like to open in the future?