Marketing @ Knowledge Zone



Retail in the Era of Globalization

- by Harmesh Mehrotra & Manu Arora *

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Format Description Value Proposition
Department Stores Large stores having a wide variety of products, organized into different departments, such as clothing, house wares, toys, etc. One stop shop catering to varied consumer needs, service as differentiator.
Supermarkets Extremely large self-services retail outlets. One stop shop catering to varied consumer needs.
Discount Stores Stores offering discounts on the retail price through selling high volumes and reaping the economies of scale. Low prices.
Hyper-mart Larger than a Supermarket, sometimes with a warehouse appearance, generally located in quieter parts of city. Low prices, vast choice available including services as cafeterias.
Convenience Stores Small self-service formats located in crowded urban areas. Convenient location and extended operating hours.
Shopping Malls An enclosure having different formats of in-store retailers all under one roof. Variety of shops available close to each other.

Of the Top-200 Global Retailers, 21% of retailers fall in the specialty stores category, followed by 18% in supermarket, 12% in department and 9% each in hypermarket and discount stores.

2.1 Retail Formats in India

Indian retail formats can be classified into two distinct categories: traditional and modern.

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* Contributed by -
Harmesh Mehrotra & Manu Arora,
MBA (IB) 2004-2006,
School of International Business,
Indian Institute of Foreign Trade, New Delhi.