18.2 Major Types of Retailers

Retailers come in all shapes and sizes, from brick-and-mortar stores to online giants. They're divided into store and non-store types, each with unique strategies to attract customers. Store retailers include specialty shops, department stores, and supermarkets, while non-store retailers sell through channels like websites and direct selling.

Modern retail is evolving rapidly, with omnichannel strategies blending online and offline experiences. Retailers are using data analytics and enhancing customer experiences to stay competitive. From convenience stores to superstores, each type of retailer has its own approach to meeting consumer needs and preferences.

Types of Retailers

Store vs non-store retailers

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• Store retailers have physical store locations that customers visit to purchase products (specialty stores like Gap, department stores like Macy's, supermarkets like Kroger, convenience stores like 7-Eleven, discount stores like Walmart)
• Non-store retailers sell products to customers without maintaining physical store locations through channels such as online retail (Amazon, eBay), direct selling (Avon, Mary Kay), vending machines, door-to-door sales, telemarketing, television home shopping (QVC, HSN)

Types of store retailers

• Specialty stores focus on a specific product category or target market, offer a narrow but deep assortment within their specialty, provide high level of customer service and product knowledge (Gap for clothing, Barnes & Noble for books, Foot Locker for athletic footwear)
• Department stores offer a wide variety of product categories each managed as a separate department, typically located in shopping malls or standalone buildings, provide a high level of customer service (Macy's, Nordstrom, Bloomingdale's)
  • Often utilize merchandising techniques to create attractive displays and promote sales
• Superstores are large retail establishments that offer a wide variety of products across multiple categories, often combine elements of specialty stores, department stores, and supermarkets, emphasize self-service and low prices (Walmart Supercenters, Target Supercenters, Meijer for general merchandise and groceries)
• Supermarkets focus on food and household items, often with limited non-food offerings
  • Many supermarkets develop private label brands to offer unique products and increase profit margins
• Convenience stores offer limited assortment of high-turnover products, extended hours, and convenient locations
• Discount stores emphasize low prices and high-volume sales, often with a limited assortment of products

Non-store retailer strategies

• Online shopping allows retailers to sell products through websites or mobile apps, customers browse, select, and purchase products online, products are shipped directly to the customer's address, advantages include convenience with 24/7 access and no need to visit physical stores, wide selection with access to a vast array of products from multiple sellers, easy price comparisons across different retailers quickly (Amazon, eBay, Etsy)
• Direct selling involves selling products directly to consumers through personal interactions, often in non-retail settings, sales representatives demonstrate and sell products to individuals or groups, advantages include personal service with one-on-one attention and product demonstrations, convenience of purchasing at home or in social settings, entrepreneurial opportunity for individuals to become sales representatives and earn income (Avon for beauty and personal care products, Mary Kay for cosmetics and skincare products, Tupperware for food storage containers)

Modern Retail Strategies

• Omnichannel retailing integrates various shopping channels to provide a seamless customer experience across online and offline touchpoints
• Retailers focus on enhancing the customer experience through personalized service, interactive displays, and in-store events
• Supply chain management is crucial for efficient inventory control and timely product delivery
• Retail analytics help businesses make data-driven decisions to optimize operations and marketing efforts
• Various retail formats are employed to cater to different consumer preferences and shopping behaviors