Retail organization structure





Before learning about the organizational structure of the retail industry let's know about retail.

 So what is retail?

Basically retail is a method of selling product through multilevel of distribution chain.

Distribution Chain of the retail sector

In the list of distribution chain manufacturer comes first then the wholesaler then comes retailer.

The manufacturer makes goods, then the wholesaler bought goods then distribute them to the retail markets and finally retailers sell products to the consumer.

Retail is a huge industry and it’s growing day by day, it is growing 25-30 % annually.

On the basis of organization structure retail is divided into two parts


 

 


                                          

 

Organized Retail Sector

This part of the retail sector is more dominating than others and it has huge market capital in the retail industry. In this industry organized sector has a 95% market share in India there are big bulls in this industry like

  • Reliance       
  • Future Group
  • Shopper Stop
  • Tata Croma

 

In those big bulls, reliance is the most growing retailer in India. It is growing 20% of the annual growth rate.

Hyper Markets: Hyper Market is a combination of supermarkets and departmental stores. It is the largest retail outlet. Everything you need you will find here daily need items, grocery. Jewelry, fashion, entertainment, etc. It is very big in size minimum land required to start a hypermarket is 2200 sqft.




Super Markets: In the measurement of size supermarket comes second. It requires a minimum of 1500 sqft of land to open a Super Market. You can find groceries, food items, consumer goods, fashion jewelry, etc in the supermarket but there is no service for your entertainment like multiplex or game parlor this facility only available the only the hypermarket.




Specialty Stores: We can guess its nature by the named specialty, so what is a specialty store? this a type of store where you can find a special product or even special brand let me clear you by giving an example: Apple store, this a specialty store they sell only Apple products or Nike store Nike sells sports shoe but which is made by them so I think now it's clear to identify specialty store. if you can give another example comment below.




Departmental Store: Here also you can  understand this type of retail business by its name, they basically sell a single category of  products with a wide range of collection under one roof. Like pantaloons there you will find fashion items from different brands but only fashion items you never can find a grocery or consumer products only one type of product or any one kind of category another example is reliance digital here you can buy any kind of electrical goods like tv refrigerator smartphones laptop from a different brand but their business model depends on one category is electronics I hope you understand this type of retail business very well.




Convenience Store : It comes under the small-scale retail sector. Its retail outlet store is not quite big and it offers you limited items. Here you can find daily need products like grocery, daily essential products, you can also find medicines

 


Unorganized Retail Sector

 

The unorganized retail sector is a small-scale retail business it has not a huge market cap and it has only 5% of the market share in the retail industry. Kirana Shop and street vendors come under unorganized retail sectors

 

Kirana Shop: This is basically local stores in our locality where we buy our daily need products it has few ranges of the variety of a product. It is also called or known as mom and pop store. You can say it is a smaller version of a convenience store but it basically sells or provides us food items and groceries.





Street vendors: We all know about street vendors there no need to explain in detail. they also come in retail sectors as we know retail is a selling method through multiple levels of distribution chan. They also buy goods from the distributor and then sell to customers to earn profit but they do it on a very small scale and they don’t have any proper store their shop can be move and in the festival session, they can change their business models. Like if a street vendor selling fast food but when it comes to a festival like Holi they may be changed their business model to sell colors.


 


 

 


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