What is a Retail Store? : Definition | Example | Types

Retail” is a general term for selling something. Retail is when people or businesses sell goods and services directly to the person who will use them. Retailers are part of the supply chain, which is a system that works together. A retailer buys large amounts of goods or products from the manufacturer or a wholesaler and then sells smaller amounts to customers for a profit. Retailing can be done in fixed places like stores or markets, door-to-door, or by delivery. Retailing includes services that aren’t the main focus, like delivery. The word “retailer” is also used when a service provider meets the needs of a large number of people, such as the public.

Retail Store

Definition of Retail Store

A retail store is a business whose main way of making money is by selling to consumers. Retailing is the process of selling goods or services directly to end users for personal, non-business purposes.

Classification of Retailers

  • Service-based classification. These retailers are the ones that can offer a wide range of services to their customers, such as rentals, electricity, banking, cooking gas, etc. The success of the service depends on a number of factors. Some of these factors are the use of modern technology, the amount of customization, and the speed with which the service is delivered.
  • Store-based classification. Store-based retailers also have two subgroups: those based on ownership and those based on the products they sell.
  • Non-store-based classification. They stress getting in touch directly with the end customer. These include both selling to people you don’t know and selling to people you do know. Non-personal sales are done through TV, mail, catalogs, the internet, etc.

Types of retail stores

Department Stores

This kind of store is one of the most complicated kinds of places that sell a lot of different things. It’s like a group of smaller stores that are all run by the same company. People know department stores for having a wide range of products at different price points. Macy’s, Shoppers Stop, and Kohl’s are all well-known examples of department.

Specialty Stores

Specialty stores are shops that sell only one or two types of goods. They are known for only selling a small number of products. Customers of specialty stores tend to care less about prices than customers of other types of stores. These stores only sell one type of product, like clothes for men, clothes for kids, or sports equipment.

Supermarkets

One of the most common types of stores are supermarkets. They are big, self-service stores with different sections for food and some other things. When compared to consumer durables, FMCG products are what these stores are mostly about. In supermarkets, the variety of products is very important because they need to be set up so that customers are drawn to them and they sell more quickly.

Convenience Stores

Convenience stores are usually near homes and sell a small selection of goods at higher prices because of how convenient they are. Most of the time, they are small businesses with a limited range of goods. People know that these places have very quick and focused service.

Discount Stores

As their name makes clear, discount stores offer big savings on the things they sell. The way discount stores compete is by having low prices, a high turnover rate, and a large amount of sales. One of the best examples of this kind of store layout is Walmart, whose slogan is “Save money.”

Hypermarkets or Super Stores

Hypermarkets are better than supermarkets in one way. These stores are very big, and they sell many different kinds of things. Most of the time, you won’t find these stores in malls. Instead, they are the size of malls. Tesco, Asda, and Costco are all well-known examples of this type of store.

Warehouses

A warehouse store is a store that sells limited items in large quantities at a discount. Warehouse stores do put a lot of money into their displays and rely on lower prices to bring in customers

 E-Commerce Stores

E-commerce stores are online shops that let people buy things from anywhere, at any time. The order is placed online through the store’s website, and the products are sent to the address given by the customer.

Dollar Stores

One type of discount store is a dollar store. They charge low prices for their goods. Their prices are the only thing that is different.

Drug Stores

Drug stores are stores that only sell medicines. The newer drug stores, on the other hand, sell a lot more than just medicines. This makes them their own kind of specialized store.

Conclusion

The world of retail is changing faster than ever before. The new generation of customers would rather shop online than in person. Even though most retailers only sell in person today, the future of retail is a mix of in-person and online sales. This paradigm shift has been sped up by the global coronavirus pandemic, which has forced retailers to quickly adopt new technologies, build digital platforms, use digital payment methods, and more.