Questions and Answers
Retailers are classified based on what?
What is an independent retailer?
A retailer owned by a single person or partnership and not operated as part of a larger retail institution.
What is a corporate chain?
Two or more outlets that are commonly owned and controlled.
What are contractual systems in retail?
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What does 'depth' refer to in retail?
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What does 'breadth' refer to in retail?
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Study Notes
Retailer Classification
- Retailers are grouped based on ownership structure and the variety of merchandise they sell.
Independent Retailer
- Owned by an individual or a partnership.
- Operates independently and is not affiliated with larger retail entities.
Corporate Chain
- Consists of two or more outlets under common ownership and management.
- Centralized control allows for uniformity in operations and branding.
Contractual Systems
- Comprises independently owned stores collaborating to emulate a chain's operational benefits.
- Includes franchises where individual stores operate under a larger brand umbrella while maintaining independence.
Depth of Product Line
- Refers to retailers that offer narrow categories of products with extensive selections within those categories.
- Examples include specialty stores like Sunglass Hut and category killers like Staples that dominate their specific market segments.
Breadth of Product Line
- Indicates retailers that carry a wide range of product categories.
- General merchandise stores, such as Target and traditional department stores, exemplify this model by offering varied items across multiple lines.
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Description
Test your knowledge on retailer classification with these flashcards! Learn key terms like independent retailer, corporate chain, and contractual systems. Perfect for students and professionals in the retail industry.
