Offline Retail The offline retail sector is highly fragmented, with 97% of its business being run by the unorganized retailers like the traditional family-run stores and corner stores. The industry is the largest source of employment after agriculture and has deep penetration into rural India,
generating more than 10% of India’s GDP. Retail Gyan has discussed the benefits of Offline retail in our blog ‘Unfair advantages in offline Retail Business,’ and now we will explain different types of offline retails in this
Mom and Pop Store (or Kirana Store)
Mom and Pop stores are the small shops run by individuals in the neighbourhood to cater to the daily needs of the customers staying in the proximity. They offer selected products and are not at all organized. The size of the shop would not be big, and it depends on the land available to the owner. They wouldn’t offer high-end products. According to Nielsen report, as of February, India had 6.65 million Kirana stores in the country.
A store in your area which provides the essential material to you promptly and is available to you for all primary requirements is a convenience store. These are small stores that do not have too many categories in their product line. They will have 2-3 varieties of each product, and the quantity also will be lesser. But they are almost everywhere in the country. Usually, most convenience stores provide low-level items.
The most significant advantage of a convenience store is, well, its availability nearby. So, you can bring milk, and you need not enter the mall and go through the hassle of check-in your bags, checkout for daily need items.
The convenience stores are a small shop giving super-fast service with a focused approach to consumers.
A specialty store is a store that carries a deep variety of brands, styles, or models within a relatively narrow product line. The advantage of a specialty store is that you will find many things in that store related to that specialty, which you might not find on the open market.
For example, stores specialized in bodybuilding, sports products, or specific clothing like Victoria’s Secret and Nike. Such stores will have all different kinds of styles of the particular product line, and you can find stuff which you won’t find in the traditional shops. Therefore, if you had to get fitness equipment, you would plausibly visit the specialty store.
Department stores are commonly located within malls, and they may not have their independent stores. Department stores have many products under one roof. They sell clothing, men’s and women’s accessories, home furnishings, children’s toys, and many other things. They generally have separate sections for separate categories. Nevertheless, the number of categories is not as exhaustive as Supermarkets or hypermarkets.
Examples of Department stores are Shoppers Stop, Pantaloon, where we get a wide variety of items such as clothing, accessories, and cosmetics.
Pharmacy stores are the ones that are specialized in selling medicines. They can be a form of the specialized store itself, but drug stores are now broader than any dedicated store because of the number of drugs we need in day to day life.
Nowadays, pharmacy stores retail many other items besides medicines like beauty products, personal care, protein supplements, healthy snacks, small medical equipment as well as and other healthcare products. The number of pharmacies is about 550,000 in India.
A supermarket offers a wide assortment of food, household products, organized into different segments, where customers can pick the products in the basket and do the billing in the counter. They are more spacious and have a broader selection than grocery stores, but is smaller and limited in the range of goods than a hypermarket.
The supermarket has separate aisles for meat, dairy, fresh produce, and baked goods. Shelf space is reserved for packaged goods, household cleaners, kitchenware’s, pharmacy products, and pet supplies.
Examples of the supermarket are Reliance Fresh, Heritage, and Nilgiris.
Super Stores or Hyper Markets
An enormous full-service supermarket combined with a department store is known as a hypermarket. Hypermarket is retail stores that are large in size and have many different categories. It has everything under its roof, any product that one can buy as a “residential consumer.”
These stores are not found in malls. These superstores provide much discount to the customers, which attracts them. Nevertheless, these superstores or a hypermarket do an excellent job of balancing the quality of the goods, keeping it premium. One can find a low, mid, and even high-level quality of products in a hypermarket.
Examples of the Hyper-Market are Saravana store, Spar Hypermarket, More Hypermarket, and Reliance Mart.
A discount store is a retail shop which sells products at prices that are lower than the average market price. Good discounts attract customers to their stores. They make this possible by buying the products in large volumes from the company and establishing an enormous number of hypermarkets so that they can liquidate by selling these products to the consumers by passing on the margins.
Vishal Mega Mart is an excellent example of a discount store in India.
Off-Price retailers buy products at less than regular wholesale prices so they can charge consumers less than other retails. These stores sell items that have a minor defect during the time of manufacturing or which have a small defect due to handling. The advantage of these stores is the lower price of the items, but the disadvantage is that the stock gets over soon, and one has to compromise for the goods, which might have minor defects.
Types of off-price retailers are as below.
A factory outlet is a brick and mortar or online store in which manufacturers sell their stock directly to the public. Here, the products sold are from one brand only. Manufacturers who sell only their products at a reduced price run factory outlets.
Independent off-price retailers
Retailers who are independent in nature and are run by entrepreneurs or a part of some large corporation are called Independent off-price retailers.
A retail style in which limited stock is sold in volume at a discounted rate is called a warehouse store. They do not worry much about the interiors of the store, and the products are not appropriately arranged.
In Catalog showrooms, customer places an order for merchandise using the number on the display item or in a Catalog. The product is then retrieved from the warehouse and sold to the buyer. These showrooms have moderate prices, as they lessen the cost of displaying commodities, focusing on a restricted range of products, located in low-cost areas.
Many retail stores operating in one place under one roof form a mall. A mall would consist of numerous retail outlets, each selling their commodities but at a common platform. They offer a place for entertainment, dine-out, and also the right place to meet friends or have official meetings in the cafes.