Month: November 2021

Airport retailing is basically the presence of many retail services of many products inside the airport for providing enhanced convenience to the people travelling. Airport retailing also delivers a broader variety of merchandizes and is a comparatively easy choice for travelers. As many retailers tend to think that airport retailing is just strategy diversification and market expansion. However, this kind of thinking is expected to lead to negative results related to the perception of airport business as the brands that are found in the airport are of high quality and are considerably the high-end ones.

The factors that are expected to drive the growth of the airport retailing market are rising retail promotion in airports, availability of products at low prices, and rising tourism. The airport retailing market players can further gain from the rising customer airport experiences and fall in jet fuel prices. However, factors such as the prevalence of downtown retail stores, strict government regulations and rules and rising political unrest.

In the last couple of years, airport retailing has witnessed a substantial rise across airports not only in developed regions but also in developing regions. In the last few years. Europe has seen a substantial rise in airport retailing owing to inexpensive air fare and rise in tourism. Furthermore, the growing disposable income of people in the Asia Pacific region and their inclination towards luxurious lifestyle is further expected to trigger the growth of the airport retailing market in the region.

Airport retailing is referred to as the availability of retail services of various products within the airport in order to provide greater convenience to travelers. Airport retailing provides a wider variety of products and is an easy option for travelers. With value customer services as the top priority in the aviation industry, airport retailing is expected to gain momentum over the coming years owing to its feasible services to customers. The provision of goods and services in airports will vary depending on the type of travelers such as business travelers or vacationers and on the manner in which the airport manages domestic and international passengers. It is also subject to the economic, geographic, and demographic specificity of the location of the airport. In addition to the regional feature, airports retailers are also required to meet the unique and specific shopping patterns and needs of air passengers such as speed of the service, convenience, store layout, cleanliness and appearance, and product quality and variety.

Many retailers assume airport retailing just as a market expansion and diversification strategy. However, this perception is likely to lead to negative results if the environment of the airport is not seriously taken into consideration. The quality business proposals in the airport are the ones which comprise a considerate and thorough evaluation of the product and how it visually appeals to the consumer.

The market intelligence publication delves into the possible growth opportunities for the global airport retailing market and the chronological growth of the market throughout the forecast period. It also uniquely provisions required data related to facers such as dynamics influencing the progress in all possible retrospective manner. Several ubiquitous and non-ubiquitous trends have also been mentioned in the study. An outlook of extensive nature keeping in mind the Porter’s five forces analysis has been provided to make the vendor landscape transparent to the reader. The report further reaches out to point out accomplishments related to R&D, acquisitions, mergers, and crucial partnerships and verifications. The companies in limelight have been analyzed on market shares, products, and key strategies.

Global Airport Retailing Market: Trends and Opportunities

The global airport retailing market is projected to expand at a significant rate over the next couple of years owing to the growth in the tourism sector, rising income of the middle class across the globe, and easy accessibility of brands. By type, the global airport retailing market can be segmented into supermarkets, specialty retailers, department store, and direct retailer. The segment of direct retailer has been estimated to lead the market in the coming years accounting for the leading market share until 2025. Stores such as Levi’s, Hugo Boss, and Lacoste are known for generating maximum revenue. In terms of airport size, large airports are expected to emerge dominant in the global airport retailing market.

The global airport retailing market is expected to grow tremendously owing to the rising promotional activities by companies and individual brands and incessantly growing passenger traffic. Retailing has turned out to be the leading source of income for airports across the globe. This can be attributed to the rise in the number of air travelers and enhanced duty-free shopping experience. The market for global airport retailing is also expected to be driven by the growing demand for local destination products.

Global Airport Retailing Market: Regional Outlook

Over the last couple of years, Europe has witnessed immense progress in the market for airport retailing owing rising investments in retail services in airports, feasible air fares, and upsurge in tourism. Moreover, due to several projects in pipeline such as refurbishments, renovation of current airports, and expansion and development of new terminals, the market is expected to witness tremendous growth. Owing to development of high-end airports in countries such as China and India, Asia Pacific is likely to grow at a significant rate.

Global Airport Retailing Market: Companies Mentioned in the Report

Some of the chief players in the airport retailing market are World Duty Free Group, Dubai Duty Free, Duty Free America, Gebr. Heinemann, Dufry, and Autogrill.

The reports at TMR Research provide qualitative solutions that break the barriers of doubt or uncertainties when the stakeholders plan to expand their growth reach. The researchers compile the necessary information that enlightens the CXOs about the current growth opportunities in a specific market and enables them to make the most of the opportunities.

TMR Research is a leader in developing well-researched reports. The expertise of the researchers at TMR Research makes the report stand out from others. TMR Research reports help the stakeholders and CXOs make impactful decisions through a unique blend of innovation and analytical thinking. The use of innovation and analytical thinking while structuring a report assures complete and ideal information of the current status of the market to the stakeholders.

TMR Research has rich experience in developing state-of-the-art reports for a wide array of markets and sectors. The brilliance of the experts at TMR Research and their alacrity to conduct thorough research and create phenomenal reports makes TMR Research better than others.

Advantages of Airport Retailing

• The operation time for stores can have longer working hours.
• Stores can remain open for all days of the week.
• Airport retail stores have a good and consecutive footfall throughout the year.
• Regular fresh display placement helps in faster stock movement.
• The exposure that the brand gets is higher than that of any other retail store.
• The brand becomes easily available to tourists and business officials from all across the globe thus, in turn, increasing its accessibility.

Disadvantages of Airport Retailing

• Replenishing merchandise and stocking shelves is much difficult than normal.
• Rent for the airport retail outlets is exceptionally high.
• Space at retail outlets of an airport is limited.
• Getting security approval takes a lot of time as it’s a long-term procedure.
• The list of requirements listed by the airport authority needs to be satisfied before permission is granted.
• Provide training to the staff in order to compete with the e-commerce business, provide exceptional customer service, etc.

Strategies:

Accurate Trend Analysis

Keeping up with the latest trends is crucial in any business or sector. While stakeholders are aware of the trends that are on the surface, TMR Researchers find trends that are deeply entrenched in the particular market or sector. The reports are constantly updated with the latest trends so that the stakeholders and CXOs can derive benefits from the trends and generate good revenues.

Current and Future Threats

Along with studying the opportunities necessary for growth, threats are also an important aspect to look upon for the companies and stakeholders in a specific sector. TMR Research studies every negative aspect that will hinder the growth of a specific area of business and includes it in the report. The stakeholders and CXOs will have the benefit of assessing the threat and take the necessary steps to prevent the hindrance caused due to the threats.

Regional Assessment

Demography forms an important part of the growth pattern of all the markets. Diving deep into the demographics enables maximum output from specific areas. The TMR Research team assesses every region and picks out the vital points that have a large impact on the growth of a market.

COVID-19 Impact

The COVID-19 outbreak has changed the growth projections of numerous sectors and businesses. The analysts at TMR Research have conducted a conscientious survey on the markets after the pandemic struck. The analysts have put forth their brilliant and well-researched opinions in the report. The opinions will help the stakeholders to plan their strategy accordingly.

Industrial Analogy

The analysts at TMR Research conduct an all-round analysis on the competitive landscape of the market. The observations recorded by the analysts are added to the reports so that every stakeholder gets a glimpse of the competitive scenario and frame their business plans according to the situation.

Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses some or all of its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee. In return the franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a franchise agreement.

The word “franchise” is of Anglo-French derivation from franc, meaning free and is used both as a noun and as a (transitive) verb. For the franchisor, use of a franchise system is an alternative business growth strategy, compared to expansion through corporate owned outlets or “chain stores”. Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes the franchisor’s capital investment and liability risk.

Franchising is not an equal partnership, especially due to the legal advantages the franchisor has over the franchisee. But under specific circumstances like transparency, favourable legal conditions, financial means and proper market research, franchising can be a vehicle of success for both franchisor and franchisee.

Thirty-six countries have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect effect on franchising. Franchising is also used as a foreign market entry mode.

Fees and Contract arrangement

Three important payments are made to a franchisor:

(a) A royalty for the trademark

(b) Reimbursement for the training and advisory services given to the franchisee

(c) A percentage of the individual business unit’s sales. These three fees may be combined in a single ‘management’ fee.

A fee for “disclosure” is separate and is always a “front-end fee”.

A franchise usually lasts for a fixed time period (broken down into shorter periods, which each require renewal), and serves a specific territory or geographical area surrounding its location. One franchisee may manage several such locations. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees. A franchise is merely a temporary business investment involving renting or leasing an opportunity, not the purchase of a business for the purpose of ownership. It is classified as a wasting asset due to the finite term of the license.

Types:

Manufacturing Franchising:

Under this arrangement, the franchisor (manufacturer) gives the dealer (bottler) the exclusive right to produce and distribute the product in a particular area. This type of franchising is commonly used in the soft-drink industry.

Product Franchising:

This is the earliest type of franchising. Under this, dealers were given the right to distribute goods for a manufacturer. For this right, the dealer pays a fee for the right to sell the trademarked goods of the producer. Product franchising was used, perhaps for the first time, by the Singer Corporation during the 1800s to distribute its sewing machines. This practice subsequently became popular in the petroleum and automobile industries also.

Business-format Franchising:

This is recent type of franchising and is the most popular one at present. This is the type that most people today mean when they use the term franchising. In the United States, this form accounts for nearly three-fourth of all franchised outlets.

Business-format franchising is an arrangement under which the franchisor offers a wide range of services to the franchisee, including marketing, advertising, strategic planning, training, production of operations manuals and standards and quality control guidance.

Franchising in India

1. Trade-name Franchising:

When franchisee purchases the right to use the franchisor’s trade name without actually distributing the specific trade mark products exclusively using the name of the franchisor, this is called ‘trade-name franchising.’

2. Product Distribution Franchising:

Such franchising involves a system in which a franchisor gives license to the franchisee to sell the specific products under the trademark and brand name of the franchisor. This type of franchising is commonly used to market automobiles (such as Chevrolet), soft-drinks (such as Coca-Cola) and appliances. It is worth mentioning that these two types of franchising give franchisees some sort of franchisor’s identity.

3. Pure Franchising:

When franchisor sells the complete business format and system of his/her product to the franchisee, it is called ‘pure franchising.’ In other words, this type of franchising provides the franchisee with a complete business format including license for a trade name, the product or service to be marketed, the physical plant, methods of operation, a marketing strategy plan, a quality control process, and so on. Such type of franchising is common among fast-food restaurants (such as McDonalds) hotels, educational institutions (such as Delhi Public School, (DPS), and many others.

Franchising is an old concept in use for long time in the business world. Some trace out the history of franchising dating back to the mid-nineteenth century when Isaac Singer decided to improve the distribution of his sewing machines, i.e., ‘Singer.’ Nowadays, franchising has become a common business format especially in the businesses with a good track record of profitability and businesses which are easily duplicated.

Advantages:

Franchising arrangement is a symbiotic one for the franchisor and the franchisee, nonetheless franchising is particularly beneficial for the franchisee.

Following are, for example, the distinct advantages that franchising provides to the franchisee:

(i) Franchising makes the task of getting started easier because the franchisee gets a business format already market tested and found to work. Hence, buying a franchise is so far safer than trying to start a business.

(ii) It reduces chances for failure. Here, what is significant to mention is that fewer than 10 per cent of all franchise fail. In dramatic contrast with this is the fact that two out of every five entrepreneurs who start on their own fail within three years, and eight out of every ten fail within ten years.

(iii) A well-established franchise brings with it the very important advantage of recognition. Many new businesses experience lean months, or years, after start-up. Obviously, the longer the period the business must experience it, the greater the chances of failure. With the well-tested franchise, this period of agony may reduce to only weeks, or perhaps just days.

(iv) Franchising may increase the franchisee’s purchasing power also. Because, being part of a large and that too proprietor organization means paying less for a variety of things such as supplies equipment, inventory, services, insurance, and so on. It also can mean getting better service from suppliers because of the importance of the organisation (franchisor) of you (franchisee) is part.

(v) One gets the benefit of the franchisor’s research and development in improving the product.

(vi) The franchisee has the protected or privileged rights to franchise within a given area.

(vii) As compared with other forms of new business, the prospects of obtaining loan facilities from the banks and financial institutions in case of franchising are also improved.

Disadvantages:

In-spite of above benefits, franchising is not an unmixed blessing. There are some disadvantages as well associated with a franchise arrangement.

(i) Unlike entrepreneurs who start their own business, the franchisees find no room or scope for enjoying their creativity especially in case of ‘pure franchising.’ They have to work as per the business-format given by the franchisor. One classic example of regimentation in franchising can be found in the McDonald’s restaurant business-format.

A McDonald’s franchise is given very little operational latitude; indeed, the operations manual attends to such minor details as when to boil the bearings on the potato slicer. The purpose of these restrictions is not to frustrate the franchisees, but to ensure that each outlet is rim in a uniform, correct manner.

(ii) A number of restrictions are also imposed upon the franchisees. Restrictions may relate to remain confined to product line or a particular geographical location only.

(iii) Franchisees usually do not have the right to sell their businesses to the highest bidder or to leave it to a member of their family without approval from the franchisor.

(iv) Though the franchisee can build up goodwill for his or her business by his or her efforts, goodwill still remains the property of the franchisor.

(v) The franchisee may become subject to fail with the failure of the franchisor.

(vi) Another disadvantage franchisees face is that franchisors generally reserve the option to buy back an outlet upon termination of the contract. Many franchisees become vulnerable to this option. As such, they operate under the constant fear of, non-renewal of the franchise arrangement. Then, a question arises is that do these disadvantages mean that franchising is no longer a desirable way to go into small business? Certainly not. Franchising is a proven and complete business concept world-wide.

In fact, what do they really mean is that the security that some people associate with franchising is an illusion? Hard work, realistic expectations, and very careful investigation are required if becoming a franchisee is to be a successful and satisfying experience. This underlines the need for a perspicacious evaluation of a franchising arrangement. This is discussed subsequently.

The retail format (also known as the retail formula) influences the consumer’s store choice and addresses the consumer’s expectations. 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. Considerable consolidation of retail stores has changed the retail landscape, transferring power away from wholesalers and into the hands of the large retail chains.

In Britain and Europe, the retail sale of goods is designated as a service activity. The European Service Directive applies to all retail trade including periodic markets, street traders and peddlers.

Retail type by product

Food retailers

Retailers carrying highly perishable foodstuffs such as meat, dairy and fresh produce typically require cold storage facilities. Consumers purchase food products on a very regular purchase cycle; e.g. daily, weekly or monthly.

Softline retailers

Softline retailers sell goods that are consumed after a single-use, or have a limited life (typically under three years) in they are normally consumed. Soft goods include clothing, other fabrics, footwear, toiletries, cosmetics, medicines and stationery.

Grocery and convenience retail

Grocery stores, including supermarkets and hypermarkets, along with convenience stores carry a mix of food products and consumable household items such as detergents, cleansers, personal hygiene products. Consumer consumables are collectively known as fast-moving-consumer goods (FMCG) and represent the lines most often carried by supermarkets, grocers and convenience stores. For consumers, these are regular purchases and for the retailer, these products represent high turnover product lines. Grocery stores and convenience stores carry similar lines, but a convenience store (staffed or automated) is often open at times that suit its clientele and may be located for ease of access.

Hardline retailers

Retailers selling consumer durables are sometimes known as hardline retailers; automobiles, appliances, electronics, furniture, sporting goods, lumber, etc., and parts for them. Goods that do not quickly wear out and provide utility over time. For the consumer, these items often represent major purchase decisions. Consumers purchase durables over longer purchase decision cycles. For instance, the typical consumer might replace their family car every 5 years, and their home computer every 4 years.

Specialist retailers

Specialist retailers operate in many industries such as the arts e.g. green grocers, contemporary art galleries, bookstores, handicrafts, musical instruments, gift shops.

Retail types by marketing strategy

Arcade

A shopping arcade refers to a group of retail outlets operating under a covered walkway. Arcades are similar to shopping malls, although they typically comprise a smaller number of outlets. Shopping arcades were the evolutionary precursor to the shopping mall, and were very fashionable in the late 19th century. Stylish men and women would promenade around the arcade, stopping to window shop, making purchases and also taking light refreshments in one of the arcade’s tea-rooms. Arcades offered fashionable men and women opportunities to ‘be seen’ and to socialise in a relatively safe environment. Arcades continue to exist as a distinct type of retail outlet. Historic 19th-century arcades have become popular tourist attractions in cities around the world. Amusement arcades, also known as penny arcades in the US, is more modern incarnation of the eighteenth and nineteenth century shopping arcade.

Anchor store

An anchor store (also known as draw tenant or anchor tenant) is a larger store with a good reputation used by shopping mall management to attract a certain volume of shoppers to a precinct.

Bazaar

The term, ‘bazaar’ can have multiple meanings. It may be referred to Middle-Eastern market places while a ‘penny bazaar’ refers to a retail outlet that specialises in inexpensive or discounted merchandise. In the United States a bazaar can mean a “rummage sale” which describes a charity fundraising event held by a church or other community organization and in which either donated used goods are made available for sale.

Boutique

A Boutique is a small store offering a select range of fashionable goods or accessories. The term, ’boutique’, in retail and services, appears to be taking on a broader meaning with popular references to retail goods and retail services such as boutique hotels, boutique beers (i.e. craft beers), boutique investments etc.

Australia’s Officeworks is a category killer, retailing everything for the home office or small commercial office; stationery, furniture, electronics, communications devices, copying, printing and photography services, coffee, tea and light snacks

Category killer

By supplying a wide assortment in a single category for lower prices a category killer retailer can “kill” that category for other retailers. A category killer is a specialist store that dominates a given category. Toys “R” Us, established in 1957, is thought to be the first category killer, dominating the children’s toys and games market. 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. Examples of category killers include Toys “R” Us and Australia’s Bunnings (hardware, DIY and outdoor supplies) and Officeworks (stationery and supplies for the home office and small office). Some category killers redefine the category. For example, Australia’s Bunnings began as a hardware outlet, but now supplies a broad range of goods for the home handyman or small tradesman, including kitchen cabinetry, craft supplies, gardening needs and outdoor furniture. Similarly Officeworks straddles the boundary between stationery supplies, office furniture and digital communications devices in its quest to provide for all the needs of the retail consumer and the small, home office.

Chain store

Chain store is one of a series of stores owned by the same company and selling the same or similar merchandise. 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.

Apple’s concept stores include video walls, wi-fi and desks to provide an immersive customer experience

Concept store

Concept stores are similar to speciality stores in that they are very small in size, and only stock a limited range of brands or a single brand. They are typically operated by the brand that controls them. Example: L’OCCITANE en Provence. The limited size and offering of L’OCCITANE’s stores is too small to be considered a speciality store. However, a concept store goes beyond merely selling products, and instead offers an immersive customer experience built around the way that a brand fits with the customer’s lifestyle. Examples include Apple’s concept stores, Kit Kat’s concept store in Japan.

Co-operative store

A co-operative store; also known as a co-op or coop, is a venture owned and operated by consumers to meet their social, economic and cultural needs.

Convenience Store

A convenience store provides limited amount of merchandise at above average prices with a speedy checkout. This store is ideal for emergency and immediate purchase consumables as it often operates with extended hours, stocking every day.

Department Store

Department stores are very large stores offering an extensive assortment of both “soft” and “hard” goods which often bear a resemblance to a collection of specialty stores. A retailer of such store carries a variety of categories and has a broad assortment of goods at moderate prices. They offer considerable customer service.

Destination store

A destination store is one that customers will initiate a trip specifically to visit, sometimes over a large area. These stores are often used to “anchor” a shopping center (mall), generating foot traffic, which is capitalized upon by smaller retailers.

Demographic

Retailers that aim at one particular segment (e.g. high-end/ luxury retailers focusing on wealthy individuals or niche market).

Discount store

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. In the past, retailers sold less fashion-oriented brands. However, in more recent years companies such as TJX Companies (Own T.J. Maxx and Marshalls) and Ross Stores are discount store operations increasingly offering fashion-oriented brands on a larger scale.

E-tailer

The customer can shop and order through the internet and the merchandise is dropped at the customer’s doorstep or an e-tailer. In some cases, e-retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping.

A general store in Scarsdale, Victoria, Australia operates as a post-office, newsagent, petrol station, video hire, grocer and take-away food retailer

General merchandise retailer

A general merchandise retailer stocks a variety of products in considerable depth. The types of product offerings vary across this category. Department stores, convenience stores, hypermarkets and warehouse clubs are all examples of general merchandise retailers.

General store

A general store is a store that 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. In addition, a general store may provide essential services such as postal services, banking services, news agency services and may also act as an agent for farm equipment and stock-food suppliers.

Give-away shop

As the name implies, a give-away shop provides goods for free. There are several different models of give-away shop in popular use. One is where goods are free to any shopper; an alternative is that shoppers must provide a product before they can take a product and a third variation is where consumers have the option of taking goods for free or paying any amount that they can afford. For example, Australia’s restaurant group Lentil as Anything operates on a pay whatever you feel is right model.

Hawkers

Hawkers also known as peddlers, costermongers or street vendors; refer to a vendor of merchandise that is readily portable. Hawkers typically operate in public places such as streets, squares, public parks or gardens or near the entrances of high traffic venues such as zoos, music and entertainment venues, but may also call on homes for door-to-door selling. Hawkers are a relatively common sight across Asia.

High Street store

A high street store is a term used widely in the United Kingdom where more than 5,000 High Streets where a variety of stores congregate along a main road. Stores situated in the High Street provide for the needs of a local community, and often give a locality a unique identity.

Hypermarkets

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.”

Mom-and-pop store

A small retail outlet owned and operated by an individual or family. Focuses on a relatively limited and selective set of products.

Pop-up retail store

A Pop-up retail store is a temporary retail space that opens for a short period of time, possibly opening to sell a specific run of merchandise or for a special occasion or holiday period. The key to the success of a pop-up is novelty in the merchandise.

Retail marketplace

A Marketplace is defined as venue for the retail sales of all products, packed and unpacked where the sale is to end users. 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. In the Middle East, a market place may be known as a bazaar or souq.

Market square

A market square is a city square where traders set up temporary stalls and buyers browse for purchases. In England, such markets operate on specific days of the week. This kind of market is very ancient, and countless such markets are still in operation around the world.

Shopping center, shopping mall

A shopping center is a collection of shops, often under one roof. Types of shopping centers include super-regional and regional centers (in North America and some other areas, called shopping malls), smaller neighborhood centers (in the U.K. a retail park) and strip malls, and larger specialized centers such as power centers (in the U.K. also considered a type of retail park), lifestyle centers, outlet centers and festival marketplaces. 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. Shopping centers are typically managed by a central management/ marketing authority which ensures that the center attracts the right type of retailer and an appropriate retail mix.

Speciality store

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. Size of store varies some speciality stores might be retail giants such as Toys “R” Us, Foot Locker, and The Body Shop, while others might be small, individual shops such as Nutters of Savile Row. Such stores, regardless of size, tend to have a greater depth of the specialist stock than general stores, and generally offer specialist product knowledge valued by the consumer. 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. They differ from department stores and supermarkets which carry a wide range of merchandise.

Supermarket

A supermarket is a self-service store consisting mainly of grocery and limited products on non-food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 square feet (1,900 m2) and 40,000 square feet (3,700 m2). Example: SPAR supermarket.

Variety store

Variety stores offer extremely low-cost goods, with a vast array of selection. The downfall to this is that the items are not very high quality.

Vending machine

A vending machine is an automated piece of equipment wherein customers can drop the money in the machine which dispenses the customer’s selection. The vending machine is a pure self-service option. Machines may carry a phone number which customers can call in the event of a fault.

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

Warehouse Club

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. The clubs are able to keep prices low due to the no-frills format of the stores. In addition, customers may be required to pay annual membership fees in order to shop.

Warehouse Store

Warehouse stores are retailers housed in warehouses, and offer low-cost, often high-quantity goods with minimal services, e.g. goods are piled on pallets or steel shelves. shopping aisles are narrow and cramped, added-value services such as home delivery are non-existent.