Some shopping centers may have as few as 3 units or as many as 20. However, as you start to grow, you may need to find funding elsewhere. Retail Format Area sq ft Convenience stores 500 — 1,000 sq ft Supermarkets 1,000 — 10,000 sq ft Hypermarkets Above 10,000 sq ft A supermarket, a large form of the traditional grocery store, is a self-service shop offering a wide variety of food and household products, organized into aisles. One benefits of this arrangement is that the stores purchase the merchandise from the manufacturer and sell it prior to actually having to pay the manufacturer. They sell goods like clothing , accessories , cosmetics , house hold goods and a very broad ssortment with fixed prices.
It is easy to set-up and is the least costly among all forms of ownership. Advice and good training can make a huge difference in the success of a business, therefore this is a great benefit. But location still remains important. Attracted by the growth potential of the new format, competitors enter the business during the growth phase, and there is intense competition among the retailers of the new format. Forms of Business Organization These are the basic forms of business ownership: 1. Your decision can have important effects on your ability to separate your own personal assets from business assets, your ability to raise capital, your taxes and the disposition or transfer of the company when it is bought or sold.
You have unlimited liability for all lawsuits against your business. Supermarkets One of the other popular retail formats in India is the supermarkets. Partnership — these are made up of two or more people and any profits, debts and decisions related to the business are a shared responsibility. Eg : S hoppers stop. However the quality of the product is always in doubt at the discount stores.
Motivation and shopper typology theories have changed with time. The backbone of the Walmart empire is the Supercenter. Vending: This kind of retailing is making incursions into the industry. Hypermarkets : The evolution of hypermarkets has resulted in wider and deeper product assortments for customers. Most popular examples of category killers include electronic stores like Best Buy and sports accessories stores like Sports Authority. Therefore such stores should stock only those items whose purchases the family cannot postpone till the weekend.
Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. Also, some centers may not precisely fit into one specific classification. The supermarket typically comprises meat, fresh produce, and dairy, and baked goods aisles, along with shelf space reserved for canned and packaged goods as well as for various non-food items such as kitchenware, household cleaners, pharmacy products and pet supplies. The prices have been increasing due to the world economic trend. Department stores: These are the general merchandise retailers offering various kinds of quality products and services.
A merchandising business sells a product without changing its form. If we are serious about growing. They are open for an extended period of the day and have a limited variety of stock and convenience products. The center consists of several freestanding anchors and only a few, small specialty tenants. Superstores are food based retaliates that are larger than the traditional supermarket and carry expanded service daily, bakery, seafood and non food sections. A disruption started when generalist stores and catalogues were successful, and then specialized retailers took over the generalist stores and catalogues. At no point over the last fifty years of shopping behaviour research, it can be argued that shoppers are not motivated in some form.
Internet retailing is the fourth disruption. Management franchising is great for , which are franchises that are bought from an , as all the operational day to day tasks and activities are in place including the existing staff. Eg factory Recently in the past few years we have seen the advent of the non store retailing in India. The aggregation of customers and products enabled departmental stores to charge lower prices. As an alternative, they created a franchise company selling the right to bottle the product to individual bottling plants. The big difference between wholesale and retail is in the price. Category killers are specialized in their fields and offer one category of products.
Both existing and new players are experimenting with new retail formats. Department stores provide a wide range of options to the consumers and thus fulfill all their shopping needs. This enables this type of retailer to stock, display and retail a large variety of good at very competitive prices. The specialized retailers grew, and they were able to make enough sales from a narrow, but deep product mix. A company can develop insights into the behaviour of its customers as they shop in the retail store. Your community probably has many shopping centers of various sizes.
The stores are open for 11 or 12 hours a day with additional hours for business members. His business started to fail when a highway was created seven miles away from his restaurant. These first franchise owners paid Singer a fee to work in a particular territory and earned money for each sale of a sewing machine they bought from the company and resold. If the company can sell food in small stores at the same price point as it sells food in its giant stores, it will have a price advantage over its competitors. For this type of franchise, you will also be required to pay fees for the ability to use the trademarks of a franchise, and your focus is on business development, overseeing the business and managing the team. They offer more customer service than their general merchandise competitors.