The constant development of today’s marketing era is increasingly opening up great potential for the retail market. In that context, many types of retail stores were born. Compared with the 80s and 90s, today’s retail stores have a huge difference because retailers have realized the importance of retail stores in providing customers with different experiences and services to their revenue. Therefore, there are many types of retail store, depending on the behavior of consumers and the capabilities of the manufacturer.
What is a Retail Store?
Retail store refers to a business establishment that sells goods directly to consumers. These goods are often sold at a higher price. There are many types of retail stores that cater to different types of consumers and use different sales techniques.
How does retail work? – Retail Mechanism
The first step of the retail mechanism is constituted by the manufacturers. Manufacturers with the help of tools, processes and labor proceed to produce goods from raw materials. After completing the production of goods, they are sold to wholesalers. Wholesalers sell goods in bulk to retailers at low prices. Retailers have the option of purchasing goods from wholesalers or directly from manufacturers. Retailers then sell these goods to the final consumer at a higher price.
We provide below 6 types of retail stores that are very popular with today’s market, choose and apply to your business!
A department store is one of the most complex types of retail stores because it offers a wide variety of products. It can be compared to a collection of smaller retail stores managed by a single company. Department stores often offer a wide variety of products at different prices. Some department store categories may include shoes, clothing, beauty products, jewelry, home appliances, and more. For example, Macy’s, Shoppers Stop, and Kohl’s are really famous brands in the department store type of retail.
Specialty stores are stores that typically focus on one or two specific types of products. They are known to consumers because the product line they have is often narrow. One distinguishing feature of the customers of specialty stores is that they are often less pressured. These stores specialize in a certain type of merchandise such as menswear, children’s clothing, and sportswear.
Convenience Stores as types of retail store
A convenience store is usually present in many locations, provides the most basic products in a timely manner and is ready to meet all basic needs for consumers. These are small stores, with quite a few categories and not too specialized in a single product line. Usually, convenience stores offer low-end or mid-range items. Convenience stores have the advantage of convenience because of their popularity everywhere. This is a type of small shop that offers super fast service with a centralized approach.
There is no doubt that e-Commerce is the future of the retail industry. In this day and age, if consumers can’t find the products they need in physical stores, they are sure to find those products online as sellers from all over the world sell their products online or import products from other countries. In the future, we as consumers will inevitably see brands having their own online retail stores and ditching the middlemen who sell directly to the end customer.
Warehouse store can refer to a retail store that sells products in limited quantities and at a discount. Warehouse stores invest heavily in visual merchandising, and rely on lower prices to attract customers.
Cub Foods (affiliated with SuperValu), Food 4 Less and Food Basics (Canada) are very popular companies in this type of retail store.
Supermarkets are often thought of as large markets, selling a wide variety of available products. Most of this type of retail will focus on the residential segment by dealing in a wide variety of food, essential products, groceries, flour, laundry, and more. Supermarkets are often preferred because they offer many models of the same product. Consumers can easily find a variety of soaps and shampoos at their local supermarket for example. Supermarkets today offer more price incentives to stimulate consumers to shop there.
ConnectPOS can be considered as a helpful tool to support businesses in the retail sector, especially the e-Commerce store. ConnectPOS offers businesses store management services, payment services and customer interaction with the best conditions.
CONCLUSION: Types of retail store
Retail is a very competitive segment and one of the segments with high costs and low profit margins. However, retailing covers that drawback with huge sales and volumes you can make from types of retail store.
Contact us to know more about types of retail stores and choose the most suitable ones for your business!