Amount of Service
Different types of customers and products require different amounts of service. To meet these varying service needs, retailers may offer one of three service levels—self-service, limited service, and full service.
Self-service retailers serve customers who are willing to perform their own "locate-compare-select" process to save time or money. Self-service is the basis of all discount operations and is typically used by retailers selling convenience goods (such as supermarkets) and nationally branded, fast-moving shopping goods (such as Wal-Mart or Kohl's). Limited-service retailers, such as Sears or JCPenney, provide more sales assistance because they carry more shopping goods about which customers need information. Their increased operating costs result in higher prices.
• table I 13.1 Major Store Retailer Types
|
Type |
Description |
Examples |
|
Specialty stores |
Carry a narrow product line with a deep assortment, such as apparel stores, sporting-goods stores, furniture stores, florists, and bookstores. A clothing store would be a single-line store, a men's clothing store would be a limited-line store, and a men's custom-shirt store would be a superspecialty store. |
REI, Tiffany, Dixons, Williams-Sonoma |
|
Department stores |
Carry several product lines—typically clothing, home furnishings, and household goods—with each line operated as a separate department managed by specialist buyers or merchandisers. |
House of Fraser, Harrods, Trent |
|
Supermarkets |
A relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer's total needs for grocery and household products. |
Tesco, JUSCO, Safeway, Supervalu, Publix |
|
Convenience stores |
Relatively small stores located near residential areas, open long hours seven days a week, and carrying a limited line of high-turnover convenience products at slightly higher prices. |
7-Eleven, Stop-N-Go |
|
Discount stores |
Carry standard merchandise sold at lower prices with lower margins and higher volumes. |
Wal-Mart, Carrefour, Target |
|
Off-price retailers |
Sell merchandise bought at less-than-regular wholesale prices and sold at less than retail, often leftover goods, overruns, and irregulars obtained at reduced prices from manufacturers or other retailers. These include factory outlets owned and operated by manufacturers; independent off-price retailers owned and run by entrepreneurs or by divisions of larger retail corporations; and warehouse (or wholesale) clubs selling a limited selection of brand-name groceries, appliances, clothing, and other goods at deep discounts to consumers who pay membership fees. |
Mikasa (factory outlet); TJ Maxx (independent off-price retailer); METRO Cash & Carry, BJ's Wholesale Club (warehouse clubs) |
|
Superstores |
Very large stores traditionally aimed at meeting consumers' total needs for routinely purchased food and nonfood items. Includes supercenters, combined supermarket and discount stores, and category killers, which carry a deep assortment in a particular category and have a knowledgeable staff. |
Wal-Mart Supercenter, Ling & Sons, Meijer (discount stores); Best Buy, PetSmart, Staples, Barnes & Noble (category killers) |
Specialty store
A retail store that carries a narrow product line with a deep assortment within that line.
Department store
A retail organization that carries a wide variety of product lines—each line is operated as a separate department managed by specialist buyers or merchandisers.
Supermarket
A large, low-cost, low-margin, highvolume, self-service store that carries a wide variety of grocery and household products.
Convenience store
J- store, located near a residential ins. that is open long hours seven days a .»«sc. end carries a limited line of high-Unower convenience goods.
In full-service retailers, such as high-end specialty stores (for example, Tiffany or Williams-Sonoma) and first-class department stores (such as House of Fraser or Neiman Marcus), salespeople assist customers in every phase of the shopping process. Full-service stores usually carry more specialty goods for which customers need or want assistance or advice. They provide more services resulting in much higher operating costs, which are passed along to customers as higher prices.
Continue reading here: Relative Prices
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