They are self-service, large-scale, low-cost, high-volume operations that cater to the needs of food, grocery and non-food products. This format was the first to introduce the grocery revolution. Today, it accounts for more than 30% in most countries. Most commonly, a grocery store is defined as a space between 400 and 2500 square meters that sells at least 70% of food and everyday items. In international markets, these stores range in size from 8000 square foot to 20000. ASDA Safeway, Tesco, Kroger are all large international players. Although there are no standards for what defines a Indian supermarket, the business format is growing rapidly. Nilgiris is a supermarket that can be found in India. Other examples include Foodworld, Subhiksha and Vitan. In the past, different variations of the business model emerged. These include the superstores and combination stores. A superstore has more than 25000 products, including non-food items like General Merchandise and Health and Beauty Care. Combination stores have a full-line pharmacy and a superstore.
The French word for hypermarket is hypermarche. It is a combination supermarket-department store. Since its creation by Carrefour near Paris in 1963, this retail format has evolved. Hypermarkets are retail stores with an area over 2500 square meters, and at least 35% dedicated to non-grocery products. The area of the stores ranges between 80000 and 220000 square feet. The stores offer food as well as non-food products such as clothing, jewellery, hardware and sports equipments. Hypermarkets today are synonymous with one-stop shopping.
These stores will usually have the lowest prices. World hypermarkets can be found in Retail Parks all over the world. They are also often surrounded by other shops, restaurants, and cafeterias. Other facilities include a pharmacy, photo processing shop and a bank. Hypermarkets are usually destination stores, which is a key factor in differentiating them from other retail formats. These hypermarkets target a vast area of customers by offering them low prices and unique products. Carrefour is a key retailer that uses this business model. Other retailers include Wal-Mart and Target. India has many hypermarkets, including Giant Big Bazar Star India Bazar.
A specialty store is a store that specializes in a single durable good (such as household and home goods, consumer electronics, and/or electrical appliances for the domestic market) or an assortment of durable products of similar categories. The business model is defined by the availability of high-quality services and information to the customers. A narrow range of products with an extensive assortment is what defines these business models. Specialty retailers usually focus on apparels, fabrics, sports goods, furniture and jewellery. Their success is based on serving a clearly defined market.
The majority of specialty retailers in the world operate on an area smaller than 8,000 ft2. Specialty retailers in international retail chains include Gap and lkea. Specialty stores are one of the most rapidly growing formats in India. In India, retail chains like Gautier furnishings and proline furniture are examples of specialty shops.
Aristide Boucicaut’s son, Aristide Boucicaut the successful hatmaker, opened the first department-store Bon Marche’ at Saint-Germain, Paris, in 1838. The store attracted consumers by offering different products all under one roofing. A.T. Stewart set up the Marble Dry Goods Palace where he advertised retail merchandise with fixed prices for a variety dry goods. London, as well as other places around the world, were also seeing similar developments. In 1980, department stores were able to establish themselves as the universal provider of goods and services.
Small towns eventually grew into cities. Small shops grew into the most prominent department stores. Department stores are also responsible for much of the store’s standard design. The layout of stores made shopping more convenient for all consumers, no matter their socio-economic background. The departmental store offered a variety of new customer services not seen before. This included restaurants and restrooms, reading areas, home deliveries, wrapping service, store hours, different types merchandise displays, etc. This retailing format is very popular around the world. Department stores are large, multi-leveled retail outlets that offer a wide range of merchandise. Department stores are typically 7000 sqm in size. The department store sells at least clothing accessories and cosmetics. It also has a wide range of household products, as well as a wider assortment. Department stores include establishments whose sales are based on at least food, clothes and home products, but no more than 70%.
In addition, these stores employ at least 50 people and have a self service ratio that is lower than 50%. Indian Department Stores range in size from 20,000 sq. feet to 40,000 sq. feet. Shopper’s Stop and Globus have been national players for many years. Marks and Spencers, Sears J.C. Pennys, Marrods and Selfridges are some of the most well-known international players.