Chapter Two
SHOP
Types of Retailers
Prepared by:
Alap, Cristine Joy
Balolong, Junjun
Joves, Anna Liza
What is a Retailer?
Is a business that sells product
and or services to consumers
and a key component that
connects the manufacturers to
SHOP consumers.
LO 2-1 Retailer Characteristics
Types of Variety and Services
Merchandise Assortment Offered
Types of Merchandise
441 Motor Vehicles and Part
Dealers
North American
Industry 442 Furniture and Home
Furnishings Stores
Classification
System
445 Food and Beverage Stores
(NAICS)
446 Health and Personal Care
Stores
Variety and Assortment
Variety Assortment
Also called breadth is the number
Also called depth is the number of
of merchandise categories a
different items offered in a
retailer offer.
merchandise category.
Services Offered
Services that are often offered to their customers.
Home Delivery
Accepting Credit
Cards
Displaying
merchandise
Gift Wrapping
Types of Retailers
01 Food Retailers
02 General Merchandise
Retailers
03 Service Retailing
PAY
05 Types of Ownership
LO 2-2 Food Retailers
Types of Food Retailer
• Conventional Supermarkets
• Supercenters
• Warehouse Clubs
• Covinience Store
A B C • Online Grocery Retailers
Conventional Supermarkets
Is a large, self service retail
food store offering groceries,
nonfood items such as health
and beauty aids,meat and
general merchandise.
A B C
Trends in Supermarket Retailing
Green Private Level
Merchandise Merchandise
Improving the
Fresh Ethnic
Shopping
Merchandise Merchandise
Experience
Supercenters
Are large stores that combine
a supermarket with a full line
discount store.
A B C
Warehouse Club
Offer an
unpredictable
assortment of
upscale
merchandise at
A B C
low prices.
Convenience Store
Provide a limited variety and
assortment of merchandise at
a convenient.
A B C
Online Grocery Retailers
Time-poor customers
are willing to pay more
to access options for
ordering groceries
online and having them
A B C delivered.
LO 2-3 General Merchandise Retailers
Department Store
Full Line Discount
Stores
Characteristics of
Category Specialist
General
Specialty Stores
Merchandise
Retailers Drugstores
Extreme Value
Retailers
Off price Retailers
Department Stores
Retailers that carry a broad
variety and deep assortment,
offer customer service and
organize their stores into
distinct department for
displaying merchandise.
They sold both soft goods or the
products that have shorter life
A B C span and hard goods or durable
goods that last several years
such as furnitures,and
electronics.
Convenience Store
Provide a limited variety and
assortment of merchandise at
a convenient.
A B C
To deal with eroding market
share Department Store are:
Increase exclusive merchandise
Increase private label merchandise
Expand omnichannel and media presence.
Full Line Discount Stores
Retailers that offer
a broad variety of
merchandise,
limited service and
low prices.
A B C
Category Specialists
Are big box stores
that offer a deep
assortment but
narrow variety of
merchandise.
A B C
Specialty Stores
Concentrate on limited
number of complementary
merchandise and provide
a high level of service.
A B C Examples: GAP, H&M, ZARA, APPLE
Drugstores
Specialty stores that
concentrate on health
and beauty care
products.
A B C
Extreme Value Retailers
Also called Dollar Stores, small
discount stores that offer a
variety but shallow assortment
of household goods, health,
beauty care, products and
A B C groceries.
Off-Price Retailers
Offer an inconsistent assortment of
brand- name merchandise at a
significant discount from the
manufacturer’s suggested retail
price.
A B C
Forecasting Mistakes Causing
Excess Inventory
Outlet Jupiter Venus
Closeouts Irregulars Irregulars
Stores
End of season
Merchandise with
merchandise that will It's a gas giant and Venus is the second
minor mistakes in
not be use in
following seasons.
construction. A B
the biggest planet
C
planet to the Sun
LO 2-4 Service Retailing
Differences between
Service and Merchandise
• Intangibility
• Simultaneous Production and
Consumption
• Perishability
• Inconsistency
Intangibility
• Services that are less
tangible than products that
customers cannot see or
touch.
Simultaneous Production and
Consumption
• Products that are typically
made in a factory, stored
and sold by a retailer and
then used by customers in
their homes.
Perishability
• Services that are
perishable, it cannot save,
stored or resold.
Inconsistency
• Products can be produced
by machines with very tight
quality control.
LO 2-5 Types of Ownership
Major Classification of
Retail Ownership
• Independent, single-
store establishments
• Corporate Chains
• Franchising
Independent, Single-Store
Establishments
• Retail start-up are
owner-managed.
Corporate Retail Chains
• Company that operates
multiple retail units
under common
ownership and usually
has centralized decision
making for defining and
implementing strategy.
Franchising
• is a contractual agreement
in which the franchisor sells
the right to use its business,
trademark, service, mark, or
another symbol of the
company.
Thank you…
Prepared by:
Alap, Cristine Joy
Balolong, Junjun
Joves, Anna Liza
