Retail format

At its most basic level, a retail format is a simple marketplace, that is; a location where goods and services are exchanged.

In some parts of the world, the retail sector is still dominated by small family-run stores, but large retail chains are increasingly dominating the sector, because they can exert considerable buying power and pass on the savings in the form of lower prices.

Many of these large retail chains also produce their own private labels which compete alongside manufacturer brands.

The European Service Directive applies to all retail trade including periodic markets, street traders and peddlers.

Soft goods include clothing, other fabrics, footwear, toiletries, cosmetics, medicines and stationery.

It may refer to Middle-Eastern market places while a penny bazaar is a retail outlet that specialises in inexpensive or discounted merchandise.

[8] For a few categories, such as electronics, home hardware, office supplies and children's toys, the products are displayed at the centre of the store and a sales person will be available to address customer queries and give suggestions when required.

Rival retail stores are forced to reduce their prices if a category killer enters the market in a given geographic area.

[9] Chain stores aim to benefit from volume buying discounts (economies of scale) and achieve cost savings through economies of scope (e.g. centralised warehousing, marketing, promotion and administration) and pass on the cost savings in the form of lower prices.

[11] A convenience store provides limited amount of merchandise at above average prices with a speedy checkout.

A retailer of such a store carries a variety of categories and has a broad assortment of goods at moderate prices.

These stores are often used to "anchor" a shopping center (mall), generating foot traffic, which is capitalized upon by smaller retailers.

Discount stores tend to offer a wide array of products and services, but they compete mainly on price.

They offer extensive assortments of merchandise at prices lower than other retailers and are designed to be affordable for the market served.

[17] A general store supplies the main needs of the local community and is often located in outback or rural areas with low population densities.

In areas of very low population density, a general store may be the only retail outlet within hundreds of miles.

The general store carries a very broad product assortment; from foodstuffs and pharmaceuticals through to hardware and fuel.

A hypermarket (also known as hypermart) provides variety and huge volumes of exclusive merchandise at low margins.

The operating cost is comparatively less than other retail formats; may be defined as "a combined supermarket and discount store, at least 200,000 square feet (19,000 m2) or larger, that sells a wide variety of food and general merchandise at a low price.

[24] In practice, retail markets are most often associated with the sale of fresh produce, including fruit, vegetables, meat, fish and poultry, but may also sell small consumable household goods such as cleaning agents.

[25] The retail mix in a mall may include outlets such as food and entertainment, grocery, electronics, furniture, gifts and fashion.

Malls provide 7% of retail revenue in India, 10% in Vietnam, 25% in China, 28% in Indonesia, 39% in the Philippines, and 45% in Thailand.

A speciality/specialty store has a narrow marketing focus  – either specializing on specific merchandise, such as toys, footwear, or clothing, or on a target audience, such as children, tourists, or plus-size women.

Pricing is usually not the priority when consumers are deciding upon a speciality store; factors such as branding image, selection choice, and purchasing assistance are seen as important.

[28] A supermarket is a self-service store consisting mainly of grocery and limited products on non-food items.

[31] Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target.

Warehouse clubs are membership-based retailers that usually sell a wide variety of merchandise, in which customers may buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners.