Retail trade is one of the most promising types of business that allows you to quickly get high profits. This article is devoted to the most common types of retail stores and their specifics, depending on the assortment.
The classification of retail stores is based on the following characteristics:
- type of assortment;
- price level;
- form of customer service;
Each of them has a significant impact on the profit of a business, but depending, for example, on the region, the economic situation at a given time period, and other subjective factors, it contains certain risks.
Types by type of assortment
According to this criterion, the following commercial enterprises are distinguished:
- with a combined nomenclature;
- with a mixed assortment.
Outlets of the first category offer consumers a wide selection of various products within a narrow spectrum: clothing, accessories, sports equipment, furniture, flowers (indoor plants), books. In turn, they are classified according to the breadth of the nomenclature within a particular product line. So:
- a clothing store is classified as specialized;
- outlets, in the assortment of which only items of women’s wardrobe are presented, are considered highly specialized;
- outlets, in which customers are offered only women’s coats, are classified as super-specialized.
Experts recommend that businesses pay special attention to the options in the latter category, as they are expected to provide quick profits in the future.
Mixed business enterprises offer manufactured goods and food products. Their popularity is due to the desire of consumers to shop in one place, thereby reducing their transport and time costs.
Department stores are commercial enterprises with a fairly large or medium turnover, which offer a limited range of products (clothing, jewelry, shoes, furniture, etc.). Each type of product is sold in its own department, managed by specialists in communication with customers or merchandisers. Along with personalized service, in some commercial enterprises the trade is organized on a self-service basis. It is possible to use other forms: service according to samples or catalogs.
This name refers to relatively large retail establishments operating at low margins. Their main task is to meet the basic needs of the population for food, specific types of industrial products and services for the home. Self-service is used as a form of commerce in supermarkets, which, not least, determines their popularity among the population.
These businesses are characterized by a wide display of prepackaged goods that minimizes the need for personnel. Large supermarkets offer customers 4-6 thousand nomenclature names, of which 1.5-2.5 thousand are food items, and 2-3.5 thousand are products of the industrial group. Supermarkets are purchased from distributors, and the most prestigious of them import components of their assortment abroad.
Walking distance shops
Outlets of this type are located directly in residential areas and offer a small assortment of essential items and foodstuffs. They work late into the night and any day of the week. Due to the limited nomenclature, the owners of such commercial enterprises are forced to apply an increased mark-up. Their main task is not to increase the average check, but to increase the number of regular customers. The popularity of this type of retailing is due to the fact that consumers tend to spend as little time as possible buying everyday items and products, and choose outlets located along their way from work to home.
These commercial outlets charge lower prices than most outlets. Consumers are attracted by the extensive and regularly updated range of high quality products purchased at discounted prices from other retailers or manufacturing companies. Conventionally, such enterprises are usually divided into 3 groups:
- Branded, owned by the manufacturer of the offered goods. Usually, they sell surplus or unclaimed products and non-standard products. Trading establishments of this type are often united in shopping centers and offer goods at prices almost half the price of ordinary commercial establishments.
- Independent, owned by the same owner.
- Warehouse wholesale clubs. Such commercial enterprises sell a limited range of branded clothing, food, household appliances and other products at substantial discounts only to their members, who pay a small contribution every year.
Relatively recently, giant specialized commercial enterprises designed to serve ordinary consumers began to appear in our country. This category includes relatively large retail establishments with an area of 3,000-5,000 square meters. m, which are designed to meet the needs of the population in regular purchases of food and other goods. Along with this, superstores often offer various household services (dry cleaning, shoe repair, laundry, etc.). It is customary to distinguish between two categories of superstores:
- Combined. Such establishments with an area of 60-70 thousand square meters. m carry out trade in medicines and food.
- Hypermarkets. These commercial enterprises occupy 10,000 – 25,000 sq. M. m. The type of activity of hypermarkets is a combination of the principles of functioning of supermarkets, wholesale and discount stores. The range of goods sold by such trading establishments is not only food and basic necessities, but also furniture, electronics, dishes, wardrobe items, children’s assortment, etc.
This type of store activity is aimed at ensuring high sales volumes, achieved by setting low prices and by reducing costs.
The exhibitions offer a wide range of branded goods that are in high and steady demand, such as jewelry, power tools, cameras, sports equipment, etc.
Visitors to such trading establishments are invited to get acquainted with their properties by the exhibited samples or study them using photos and other information from catalogs, and place an order.
This is a relatively uncommon RF way of organizing commerce. Such establishments are gigantic storage facilities. They offer a narrow range of products with low overhead costs, due to their wholesale purchase at the auction and minimization of the cost of salaries of personnel, in the role of which are warehouse workers.
This is the name of the type of retail stores that sell a standard set of products and industrial products at reduced prices, since a large turnover makes it possible to carry out entrepreneurial activities with a small margin. This category includes only retail establishments that constantly sell goods at reduced prices. It is customary to distinguish between discount stores with a specialized or a wide range of offered food or industrial products.
Specific types of retail stores
The above types of stores are among the most common. Along with them, there are other trade establishments, including those carrying out activities unusual for our country. It:
- Commission shop. Such commercial outlets are engaged in the sale of goods that are accepted from organizations or from individuals on a commission basis, as a rule, on the basis of individual service by staff.
- Boutique. Such a retail establishment sells especially fashionable (items of women’s or men’s wardrobe, shoes, accessories) or unique goods at very high prices.
- Second hand. A point of sale that sells cheap, used or not sold in “regular” stores, clothing, shoes or equipment.
- Kaufhalle is an institution with an area of 200-300 sq. m. Such an establishment, operating on the principle of self-service, is mainly engaged in the sale of food and a small range of industrial goods, which make up only 10% of the turnover. As a rule, kaufhalle occupies free-standing structures. Basically, such trade enterprises are widespread in Germany.
- Superopter. A retail outlet located outside the city limits and selling perishable goods.
- Superstore. A kind of hypermarket where food products are not sold.
Now you know the basic principles of organizing a commercial business (retail) and will be able to choose the most suitable option for you.