Retail Management: Its Significance, Strategies, Importance, and Future Prospects

If you are a business owner or employee, you are probably familiar with the terms supply chain management in manufacturing or wholesale and retail management in retail. Thus, you may manufacture a product, sell a finished product, or supply customers with any service.

If you sell products and earn a profit margin on your sales, you are in the product sector; you are in the service industry if you provide services and charge for them.

Types of Business –

There are numerous types of businesses that operate in a variety of industries; however, when it comes to target audiences, there are two distinct types of companies:

Business-to-Business (B2B) Business-to-Consumer (B2C)

B2B Business- When you sell a product to someone who resells it, you deal with a business. This is referred to as the B2B business model, which stands for business to business. Thus, this type of businessman is typically a wholesaler that sells in bulk. As a result, sales are high volume, and profit margins are poor.

However, even if you offer fewer products to other businesses, you conduct B2B commerce.

Types of Retailing Based on Ownership

1. Independent Retailer

An independent retailer is typically a small company owner or street vendor that operates its business from a single location. He snatches up consumers from surrounding establishments.

2. Retail Chains

When a business operates two or more locations under common ownership, it is a chain store. These stores may be located in multiple locations or even cities and sell the same product line on each site.

For instance, Raymonds, Bata, and Westside

3. Franchise Locations

A franchise agreement is a contract between an established brand, known as the franchisor, and another individual, known as the franchisee. In this business model, the franchisor charges the franchisee a royalty fee for using his brand name and a percentage of monthly sales.

For instance, Domino’s, KFC, and Subway

4. Department Store on Lease

Additionally, this form of business is referred to as a shop-in-shop or a store-in-store. The proprietor is a lessor who leases space to a lessee. Companies used this method to increase brand recognition.

5. Cooperatives of Consumers Stores

These are the stores that consumers independently own. A group of consumers can discover a gap in providing essential services and cooperatively open a store with profit sharing. For instance, in Mumbai, there is an ‘Apna Bazaar,’ while in Delhi, there is a ‘Super Bazaar.’ 

Retailing Based on Merchandise

1. Department Store

A department store is a large retail business that offers customers a wide selection of products under one roof. Generally, they include distinct sections for various product categories. They typically sell Electronic Appliances, Apparel, Jewellery & Accessories, and Footwear. Because the products are well organized, the shopping experience for the buyer improves as well.

Pantaloons, Max and Shoppers Stop are just a few examples.

2. Quick-Service Restaurant

These are tiny retail establishments located near residential areas to cater to the needs of residents. The sellers of a convenience shop purchase a restricted number of goods based on the basic needs of the neighborhood’s residents.

3. Unique Retail Establishment

Essentially, these types of establishments do not carry a diverse selection of things. They specialize in a particular specialty, such as sports, fitness, or electronic products. They cater to a very selected and refined clientele and offer a range of models, sizes, and colors. Nike and Levi’s are two examples.

4. Grocery

Supermarkets are essentially self-service establishments that sell groceries and other essential household items to clients. The products are neatly divided into distinct sections. The customer can add things to their cart and pay for them at the billing counter. For instance, Reliance Fresh and V Mart.

5. Discount Supermarket

A discount store sells regular products at significantly reduced costs. Allow me to assure you that the product’s quality has not been affected. Indeed, they run on a low-profit margin and a significant number of sales. Walmart is an example.

6. Supermarket or hypermarket

When a supermarket is combined with a department store, the result is a hypermarket. France coined the phrase “hypermarket.” In many locations, it is referred to as a superstore. A hypermarket is one of the most fantastic solutions for consumers who want to do all their shopping in one location.

For instance, Big Bazaar, D Mart, and Hypercity.

7. Catalogue Business

You’ve visited numerous shopping establishments where the seller shows you catalogs containing a diverse selection of things. You may choose any product. The store places the order with the manufacturer or supplier, who then ships it to you. Catalog stores are an example of this type of store.

Retailing without Stores

Non-store retailing refers to retail businesses that do not have a physical location. Additionally, you might refer to it as online retailing or e-commerce. Here, the store can interact directly with the consumer both at work and at home. Postal Orders, Telemarketing, and Automated Vending Machines are all examples.

Retailing as a Service

When a merchant does not offer a product to a consumer but instead provides a service and charges a fee for it, this is referred to as service-based retailing. For instance, car rentals, appliance repair, and salon services.