Store formats create a distinct image of the store among its customers. These formats are defined in terms of location, layout, size, design, merchandise, service offerings, etc. Though there are many kinds of retail store formats, it is the innovative combination of format elements that helps a retail store gains a competitive advantage
Scalability is the most critical factor in retail formats, helping an organization to have the ideal format mix which facilitates
-highest long-term profitability,
-highest customer satisfaction,
- target customer segments,
- ‘positioning’ in various locations,
-differentiated value proposition for customers.
If the organization is to achieve all the above, it is necessary for all these store format requirements to be packed into scalable models. Scalability of the chosen format enables the organization reach critical mass through efficient geographic dispersion or rollout. It can then achieve volumes and increase profits.
Store Formats by Location
Chain store format They have multi-location linked by a common store presentation created by its signature store design, a synergistic merchandising plan, a cohesive promotional and service-strategy, and owned and operated by a single organization
High-street format is a retail chain with its stores in busy shopping areas
Destination format They are Independent retail stores located in a particular area with alluring propositions for the customers visiting the store with the primary intention of shopping.
Convenience store format is a retail store located in a catchment area of its target customers, who can quickly access it and choose from a wide array of consumable products with extended hours of operation.
Store Formats by Ownership
Franchise format Retail stores owned and operated by individuals on behalf of a large supporting organization.
Independent store format It is a retail store is owned by a single person or a partnership, and. not operated as part of a larger retail institution.
Store Formats by Merchandise
Family store It is a store dealing with all categories of merchandise to suit the wardrobe of a family.
Specialty store It retails merchandise narrow in product lines but with a good depth within that area specializing in a given type of merchandise.
Department store A store with several departments like apparel, cosmetics and fragrances, accessories, home-ware, electronics, etc. under one roof with each section within the store functioning as a strategic business unit often owned by national chains.
Supermarket It is departmentalized, specializing in foodstuff, grocery and rations and limited non-food categories with free access displays for customers.
Emporium A retail store selling a variety of a particular group of merchandise.
Store Formats by Size
Superstore It is Single-level large store selling food and non-food goods. A superstore is generally twice the size of a supermarket and offers non-traditional goods and services like pharmacy, flower shop, bookstore etc. below one roof.
Shopping mall It is an arrangement of retail stores and places for leisure activities such as dining, entertainment, etc spread over a large area and run as an integrated business by an individual or an organization.
Plaza It is a configuration of five or more tenant spaces used for retailing, and developed under one building plan with unified character.
Hypermarket
It is retailing groceries and general merchandise goods, with a pharmacy, flower shop, photo shop, etc. and has a wide variety of merchandise offerings in large quantities in each category selling huge volumes at low margins
Store Formats by Price
Bazaar format It is also known as a discount format which retails merchandise at 25% or more below MRP. They purchase stock lots from manufacturers’ overruns, or irregulars like cut-sizes in apparel, unsold end-of-season merchandise etc., and retail them at discounted prices.
Everyday low price format They are discount specialty formats that specialize in a given type of merchandise line. There are discount stores adopting everyday low pricing strategy.
Category killer format It is a large specialty store featuring an enormous selection of its product category at relatively low prices.
Factory outlet format It is owned and operated by the manufacturer selling discontinued merchandise, factory seconds, cancelled orders, etc. at very low prices and located in the vicinity of the factory itself.
Warehouse format It is a large sale of discounted merchandise by an individual or an organization in the free-access ambience of a warehouse. It has a large width and depth in the many categories it retails.
Single-price denomination format It retails scrambled merchandise lines at just one price point, generally a low one. Such retail outlets are famous in the United States.
Store Formats by Concessions
Stopover store format It rides piggyback on another retail outlet, say a petrol pump. This stopover format is a concession that offers instant use or ready-to-eat categories of merchandise.
Kiosk It is one such concessionaire format, placed in a mall, a shopping centre, a bus station, airport, etc. A kiosk is a small freestanding pavilion often open on one or more sides and used for information, sales and promotion.
Modern retailing is thus about getting the customers heart share than his mindshare by offering a differentiated value proposition through various formats.
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