The business institutions or persons who sell goods to final consumers are called retailers. There are different types of such retailers. For the systematic study they can be divided in different classes, such as on the basis of ownership, on the basis of product line, on the basis of sales volume and on the basis of operation method.
Classification Of Retailers
On the basis of ownership, retailers are divided into four classes as follows:
The retailing shops operated under the ownership of a single person is called independent stores. Because such retailing institutions are operated under the management, ownership, direction and control of a person, they are called independent stores.
Chain stores are those retailing institutions, which are operated by a company under its ownership and management. Stores are opened at different places and they are operated under the management and control of company's central office.
Contract chain means a business institution, which is operated by private entrepreneurs under their own management. But they perform some business related functions such as purchase of goods of same nature, branding , advertising etc. jointly with the retailers. The retailers selling same nature goods enter into contract for buying goods. Buying huge amount of goods in this method reduces price of goods and the cost also is borne jointly due to which profit can be increased.
The retailing shops operated under the ownership of consumers are called consumer stores. The consumers in association establish such retailing shops to get rid of the exploitation of middlemen. Generally, consumer stores purchase goods directly from producers and sell them to its members at cheap rate.
Retailers can be divided in three classes on the basis of product line as follows:
General stores are such retailing shops where all kinds of goods are found or bought and sold. In such stores all the necessary goods for the local consumers are made available. Foodstuffs, clothes, sports materials, household goods, medicines etc are found in such stores.
Some retailers deals in only the goods of certain product line. Such retailers achieve specialization in selling some kinds of goods. Single line retailers involve in dealing in goods belonging to one product line like goods of household uses, medicines, electronic goods, motor cars, clothes etc.
The retailers who deal in only one kind of products of a certain product line are called specialty stores or retailers.
3. Types of retailers on the basis of volume of sales
Retailers can be divided in two classes on the basis of volume of sales as follows:
The retailers who buy and sell small quantity of goods are called small-scale retailers. Mostly, the small-scale retailers who operate business under sole ownership or partnership firms keep small stock of goods. They purchase necessary goods from wholesalers and sell to local consumers.
The retailers who buy large amount of goods, keep in store and sell them are called large-scale retailers. Such businessmen give emphasis to division of labor and specialization to bring effectiveness in their business. The financial position of such retailers remain relatively strong and have risk bearing capacity.
On the basis of method of operation, retailers can be classified as follows:
The retailers who sell different goods opening their shops are called shopkeepers or in-store retailers. Customers buy necessary goods going to retailers' shops. The retailers from small-scale retailing shops to large-scale retailing shops like departmental stores, supermarkets, multiple shops etc from which goods are sold to final consumers, include in in-store retailing class.
Nowadays, retailers are found selling different goods to consumers without establishing any shop. Similarly, the practice of selling goods visiting door to door of customers is not a new. Other main methods of selling goods without opening any shop are retailing through mail and use of vending machine.
1. Types of retailers on the basis of ownership
On the basis of ownership, retailers are divided into four classes as follows:
i. Independent stores
The retailing shops operated under the ownership of a single person is called independent stores. Because such retailing institutions are operated under the management, ownership, direction and control of a person, they are called independent stores.
ii. Chain stores
Chain stores are those retailing institutions, which are operated by a company under its ownership and management. Stores are opened at different places and they are operated under the management and control of company's central office.
iii. Contract chain
Contract chain means a business institution, which is operated by private entrepreneurs under their own management. But they perform some business related functions such as purchase of goods of same nature, branding , advertising etc. jointly with the retailers. The retailers selling same nature goods enter into contract for buying goods. Buying huge amount of goods in this method reduces price of goods and the cost also is borne jointly due to which profit can be increased.
iv. Consumer stores
The retailing shops operated under the ownership of consumers are called consumer stores. The consumers in association establish such retailing shops to get rid of the exploitation of middlemen. Generally, consumer stores purchase goods directly from producers and sell them to its members at cheap rate.
2. Types of retailers on the basis of product line
Retailers can be divided in three classes on the basis of product line as follows:
i. General stores
General stores are such retailing shops where all kinds of goods are found or bought and sold. In such stores all the necessary goods for the local consumers are made available. Foodstuffs, clothes, sports materials, household goods, medicines etc are found in such stores.
ii. Single line stores
Some retailers deals in only the goods of certain product line. Such retailers achieve specialization in selling some kinds of goods. Single line retailers involve in dealing in goods belonging to one product line like goods of household uses, medicines, electronic goods, motor cars, clothes etc.
iii. Specialty stores
The retailers who deal in only one kind of products of a certain product line are called specialty stores or retailers.
3. Types of retailers on the basis of volume of sales
Retailers can be divided in two classes on the basis of volume of sales as follows:
i. Small-scale retailers
The retailers who buy and sell small quantity of goods are called small-scale retailers. Mostly, the small-scale retailers who operate business under sole ownership or partnership firms keep small stock of goods. They purchase necessary goods from wholesalers and sell to local consumers.
ii. Large-scale retailers
The retailers who buy large amount of goods, keep in store and sell them are called large-scale retailers. Such businessmen give emphasis to division of labor and specialization to bring effectiveness in their business. The financial position of such retailers remain relatively strong and have risk bearing capacity.
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4. Types of retailers on the basis of method of operation
On the basis of method of operation, retailers can be classified as follows:
i. In-store retailing
The retailers who sell different goods opening their shops are called shopkeepers or in-store retailers. Customers buy necessary goods going to retailers' shops. The retailers from small-scale retailing shops to large-scale retailing shops like departmental stores, supermarkets, multiple shops etc from which goods are sold to final consumers, include in in-store retailing class.
ii. Non-store retailing
Nowadays, retailers are found selling different goods to consumers without establishing any shop. Similarly, the practice of selling goods visiting door to door of customers is not a new. Other main methods of selling goods without opening any shop are retailing through mail and use of vending machine.
