18.2 Major Types of Retailers
3 min read•june 25, 2024
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. include specialty shops, , and , while sell through channels like websites and .
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 to , 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 ( like , department stores like , supermarkets like , convenience stores like , like )
- Non-store retailers sell products to customers without maintaining physical store locations through channels such as online retail (, ), direct selling (, ), vending machines, door-to-door sales, telemarketing, television home shopping (, )
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, for books, 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, , )
- Often utilize 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 (, , for general merchandise and groceries)
- Supermarkets focus on food and household items, often with limited non-food offerings
- Many supermarkets develop 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
- 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, )
- 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, for food storage containers)
Modern Retail Strategies
- integrates various shopping channels to provide a seamless across online and offline touchpoints
- Retailers focus on enhancing the customer experience through personalized service, interactive displays, and in-store events
- is crucial for efficient inventory control and timely product delivery
- help businesses make data-driven decisions to optimize operations and marketing efforts
- Various are employed to cater to different consumer preferences and shopping behaviors
Key Terms to Review (37)
7-Eleven: 7-Eleven is a global chain of convenience stores that provide a wide range of products and services to customers. As a major type of retailer, 7-Eleven stores are known for their extended operating hours, quick and convenient shopping experience, and diverse product offerings.
Amazon: Amazon is a multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the most influential and dominant players in the global retail and technology industries, with a significant presence in the areas of digital marketing and social media.
Avon: Avon is a direct selling company that specializes in cosmetics, skincare, and personal care products. It is known for its unique business model of recruiting and empowering independent sales representatives, known as 'Avon Ladies,' to sell its products directly to consumers through personal connections and home demonstrations.
Barnes & Noble: Barnes & Noble is a prominent American retail bookseller that operates physical bookstores and an e-commerce platform. As a major type of retailer, it plays a significant role in the distribution and sale of books, magazines, and other media products to consumers.
Bloomingdale's: Bloomingdale's is a high-end department store chain that is known for its upscale merchandise, luxury brands, and premier shopping experience. As a major type of retailer, Bloomingdale's plays a significant role in the retail industry, catering to a affluent consumer base seeking a curated selection of fashion, home goods, and other lifestyle products.
Convenience Stores: Convenience stores are small retail establishments that offer a limited selection of everyday items, such as snacks, beverages, and basic household products, with the primary goal of providing quick and easy access to these items for customers. They are typically located in high-traffic areas, offering extended hours and a streamlined shopping experience compared to larger supermarkets or grocery stores.
Customer Experience: Customer experience refers to the overall impression and perception a customer has of a company or brand, based on their interactions and engagements throughout the customer journey. It encompasses the emotional, cognitive, and behavioral responses that a customer has during the pre-purchase, purchase, and post-purchase stages of the buying process.
Department Stores: Department stores are large retail establishments that offer a wide variety of merchandise across multiple product categories, such as apparel, home goods, electronics, and more, all under one roof. These stores cater to the diverse shopping needs of consumers by providing a comprehensive shopping experience.
Direct Selling: Direct selling is a marketing strategy where products or services are sold directly to consumers, typically through personal interactions, demonstrations, or presentations, rather than through a traditional retail environment. It involves building personal relationships and providing a customized sales experience to the customer.
Discount Stores: Discount stores are a type of retailer that offers a wide range of merchandise, typically at lower prices compared to traditional retail outlets. These stores focus on providing customers with value by selling products at discounted prices, often achieved through bulk purchasing, limited overhead, and streamlined operations.
EBay: eBay is an e-commerce platform that allows individuals and businesses to buy and sell a diverse range of products and services online. It operates as an auction-style marketplace, connecting buyers and sellers worldwide through its user-friendly digital platform.
Etsy: Etsy is an e-commerce platform that specializes in the sale of handmade, vintage, and unique items. It provides a marketplace for independent artists, crafters, and small businesses to sell their creations directly to consumers, fostering a unique and personalized shopping experience.
Foot Locker: Foot Locker is a leading global retailer of athletic footwear and apparel, specializing in the sale of branded athletic and casual wear. As a major type of retailer, Foot Locker operates a chain of specialty stores focused on providing a curated selection of products to meet the needs of sports and fitness enthusiasts.
Gap: The gap refers to the difference or disparity between two related concepts, variables, or entities within the context of major types of retailers. It highlights the discrepancies or imbalances that exist between various retail formats, their offerings, and the needs or expectations of consumers.
HSN: HSN, or Home Shopping Network, is a major type of retailer that specializes in selling a wide range of products through television and online platforms. It is a prominent example of a non-store retailer, offering consumers a convenient and interactive shopping experience from the comfort of their homes.
Kroger: Kroger is a major American supermarket chain that operates a network of retail grocery stores, multi-department stores, and convenience stores across the United States. As one of the largest retailers in the country, Kroger plays a significant role in the context of the major types of retailers discussed in this chapter.
Macy's: Macy's is a major American department store chain that is known for its wide range of merchandise, iconic annual Thanksgiving Day Parade, and its role as a major retailer within the context of 18.2 Major Types of Retailers.
Mary Kay: Mary Kay is a direct sales company that specializes in the manufacturing and distribution of cosmetics, skincare, and personal care products. It is known for its unique business model that empowers independent sales consultants, primarily women, to build their own businesses by selling Mary Kay products directly to customers.
Meijer: Meijer is a supercentre retail chain that offers a wide range of products, including groceries, household items, electronics, and apparel, all under one roof. As a major type of retailer, Meijer falls under the category of supercentres, which are large retail establishments that combine a full-service grocery store with a general merchandise store.
Merchandising: Merchandising refers to the various activities and strategies employed by retailers and wholesalers to promote and sell products effectively to consumers. It encompasses the display, pricing, and promotion of merchandise in order to maximize sales and profitability.
Non-store Retailers: Non-store retailers are a type of retail business that do not operate traditional brick-and-mortar stores. Instead, they utilize alternative channels, such as the internet, direct marketing, or vending machines, to sell products and services directly to consumers. These retailers leverage technology and innovative distribution methods to reach customers without the need for a physical storefront.
Nordstrom: Nordstrom is a leading luxury department store chain known for its exceptional customer service, high-end fashion, and wide range of products. As one of the major types of retailers, Nordstrom caters to the needs of fashion-conscious consumers seeking a premium shopping experience.
Omnichannel Retailing: Omnichannel retailing is an approach to sales that focuses on providing customers with a seamless and integrated shopping experience across multiple channels, including physical stores, online platforms, mobile apps, and social media. It aims to create a cohesive and consistent brand experience for the customer, regardless of the touchpoint they use to interact with the retailer.
Online Shopping: Online shopping refers to the process of purchasing goods or services over the internet using a web browser or mobile application. It has become a popular and convenient way for consumers to shop from the comfort of their homes, with access to a vast selection of products and the ability to compare prices and make purchases with just a few clicks.
Private Label Brands: Private label brands, also known as store brands or house brands, are products that are manufactured for and sold exclusively by a specific retailer under the retailer's own brand name. These brands are typically positioned as a more affordable alternative to national brands and allow retailers to differentiate their product offerings and build brand loyalty among their customers.
QVC: QVC is a prominent television shopping network that allows viewers to purchase a wide variety of products directly from their homes. It is one of the major types of retailers that has revolutionized the way consumers shop, blending television, e-commerce, and direct marketing to provide a unique shopping experience.
Retail Analytics: Retail analytics refers to the collection, analysis, and interpretation of data related to the retail industry. It involves leveraging data-driven insights to optimize various aspects of the retail business, including inventory management, customer behavior, sales performance, and marketing strategies.
Retail Formats: Retail formats refer to the different types of retail establishments and the unique characteristics that define them. These formats are strategic choices made by retailers to cater to specific customer needs and preferences, influencing their overall retailing approach and operations.
Specialty Stores: Specialty stores are retail establishments that focus on selling a narrow, specialized product assortment to a targeted customer base. These stores cater to consumers with specific needs or interests, offering an in-depth selection of goods within a particular product category.
Store Retailers: Store retailers are physical retail establishments that sell goods and services directly to consumers. They operate from a fixed location, such as a storefront or a shopping mall, and provide customers with the opportunity to browse, select, and purchase products in person.
Supermarkets: Supermarkets are large, self-service retail stores that offer a wide variety of food and household items under one roof. They are a major type of retailer that serves as a central hub for consumer shopping and fulfillment of daily needs.
Superstores: Superstores are large-scale retail establishments that offer a wide variety of merchandise, often including both grocery and non-grocery items, under one roof. These expansive stores cater to consumers' desire for convenience, selection, and competitive pricing across multiple product categories.
Supply Chain Management: Supply chain management is the coordination and management of the flow of goods, services, information, and finances across an entire supply chain, from the sourcing of raw materials to the delivery of products to the end consumer. It involves the planning, implementation, and control of all activities related to the movement and storage of goods, as well as the effective management of relationships with suppliers, intermediaries, and customers to maximize value and achieve a sustainable competitive advantage.
Target Supercenters: Target Supercenters are a type of retail store operated by the Target Corporation that combines a traditional Target department store with a full-service grocery section, offering customers a one-stop shopping experience for both general merchandise and groceries.
Tupperware: Tupperware is a brand of plastic food storage containers known for their airtight seals and innovative designs. Widely used in households, Tupperware has become synonymous with efficient food preservation and organization, making it a prominent player in the major types of retailers covered in this chapter.
Walmart: Walmart is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. As one of the largest companies in the world, Walmart's business model and sustainable marketing practices have a significant impact on the retail industry and consumer behavior.
Walmart Supercenters: Walmart Supercenters are large retail stores operated by the Walmart corporation that combine a traditional Walmart discount store with a full-service grocery store. These massive, one-stop shopping destinations offer customers a wide variety of merchandise, from electronics and apparel to fresh produce and pharmacy services, all under one roof.