A retailer is a person or business that sells goods or commodities directly to the consumers. The products are sourced from wholesalers or suppliers and sold to the consumers at a marked up price.
A retailer works on to attract consumers to the retail store(s) cost effectively (Marketing & Advertisement), keep relevant products in the stores (Inventory & Vendor Management), sell more products in a visit (Merchandizing and Markdown) and ensure the consumer revisit the store (Loyalty Management).
Retail business could be set up in various ways and some of the common retailer types are
1. Department Store – This type of retailers are often the most complex. They offer a wide range of products and can appear as a collection of smaller retail stores managed by one company. The department stores offer products at various pricing levels and a large variety of products can be purchased from a single retailer.
Examples: Shoppers Stop, Marks & Spencer, Lifestyle, Max, FamilyMart
2. Supermarkets – Supermarkets concentrate on supplying a range of food and beverage products. However many supermarkets have now diversified and offer home, fashion and electrical products. Supermarkets have significant buying power and therefore often sell retail goods at a lower price.
Examples: EasyDay, Nilgiri’s, Reliance Fresh, Spencer’s, MORE
3. Hypermarkets – these types of retailers are combination of Department store and Supermarkets who offer both food and household items.
Examples: Big Bazaar, Wallmart, Margin Free, Lulu Hypermarket
4. Warehouse retailers – Warehouse retailer is usually situated in Retail or Business Park, where rental of the premises are lower. Due to large area and lower rental, these retailers stock, display and sell a large variety of products at competitive prices.
Examples: Agriculture market for wholesalers, and Factory outlets
5. Specialty Retailers – Specializing in specific industry or product category, this type of retailers offer expert knowledge and a high level of service. They also add value by offering accessories and additional related products at the same outlet.
Examples: Pantaloons, Haldiram, Chroma, Sony World, Steel Junction
6. E-retailor /Online Retailer – The e-retailors enhance consumer experience and convenience of buying products from internet using mobile and laptop (anywhere and anytime shopping). Products are delivered to their residence and at consumer convenient time. These retailers are able to deliver products to a wider geographic area. Lower rental, overhead and inventory cost are key advantage for e-Retailers.
Examples: Flipkart, Amazon, Snapdeal, Myntra, Jabong