Various Retail Formats Delivering Value

The formats of a retailer is the overall appearance and feel that it presents to customers, primarily its look and layout, the sort of range it stocks and the approach taken to pricing. The format, together with range, pricing and marketing, is one of the key determinants of a retailer's success. Of these, the format is very often the hardest to get right. Each of the existing retail formats is unique in its own way, especially when it comes to delivering value.

For instance, due to their particularity, different formats set special demands for the automation system. The retail format of one company may focus on small-wholesale customers who pay in cash. Here arises an additional functional requirement for the automation system: prompt processing directly at the points of purchase; and two or more price-lists for retail and small-wholesale customers, etc. There are different kinds of retail formats and each of them delivers value in a different way.

Mom-and-Pop Represent the small, individually owned and operated retail outlet. In many cases these are family-run businesses catering to the local community often with a high level of service but relatively small product selection.

Mass Discounters - These retailers can be either general or specialty merchandisers but either way their main focus is on offering discount pricing. Compared to department stores, mass discounters offer fewer services and lower quality products.

Warehouse Stores - This is a form of mass discounter that often provides even lower prices than traditional mass discounters. In addition, they often require buyers to make purchases in quantities that are greater than what can be purchased at mass discount stores.

Department Stores - These retailers are general merchandisers offering mid-to-high quality products and strong level of services, though in most cases these retailers would not fall into the full-service category.

Boutique This retail format is best represented by a small store carrying very specialized and often high-end merchandise. In many cases a boutique is a full-service retailer following a full-pricing strategy.