Kinds Of Retailing

by • 10/06/2011 • B.COM PART 1 Introduction to BusinessComments (1)1118

Q5- Name different kinds of retailing. Write short note on Supermarket and Chain store.

Kinds Of Retailing

The following are the commonest types of retailing outlets.

  1. Supermarket
  2. Department store
  3. Mail order house
  4. Chain store
  5. Discount house
  6. Utility store
  7. Self-service store
  8. Sale by machine
  9. Single-product store
  10. Common retailing shops.


It is a large-sized store with many separate departments of products under one roof and ownership. They are large-scale stores keeping a large variety of goods.

Any store which fulfils the following conditions falls under the category of department store.

  • It is a retailing outlet
  • Its sales volume is very large.
  • It has different departments each of which contains a single item in various varieties, qualities, and brands.
  • These stores are located in big shopping centers.
  • They offer free services.
  • The department store operates under a centralized ownership.

These stores not only deal in national and international brand but also develop their own and sell them successfully. These private brands help them increase their sales volume. Every department employs skilled staff specialized in the respective department items. This specialization put them at a better position than other stores. The store maintains separate departments of different products. Shoes, crockery, toys, ready-made garments, perfumery, books, stationery, jewelry, all have separate departments


When a store is organized with four or more branches dealing in same merchandise are referred to as chain store. As a concept, two or more units bring about a chain stores. However, in the US a store must have at least 11 units or branches to qualify for a chain store. The units are geographically spread over a different parts of the city and all are owned centrally.

All the chain working under a central ownership must deal in the same product line. In Pakistan, Bata, Singer, KFC, Big Mac, fall under the category of chain stores. As a concept a store must have two units to qualify for a chain store. But commonly four to eleven units are considered to fall under the category of the chain store.

A chain store, irrespective of its number of units, must be centrally owned. Individual units of the chain store enjoys no independence or authority to buy. Nor is it power to fix prices. All policies and exercises regarding buying, merchandizing, pricing, advertising, hiring, firing are formulated centrally at the head office.

They offer prompt and courteous services to their customers. It is amusing to know that they do not offer service like credit, home delivery, sales returns, yet they are able to attract a large number of customers just by offering prompt attention at the store and selling at lower prices.

Pin It

One Response to Kinds Of Retailing

  1. alexchandalala says:

    Thanks a great deal

Leave a Reply