Types of Retailers Determined by NAICS (North American Industry Classification System) Used in Mexico US, and Canada Determined by what type of product the retailer sells

NAICS Retail Industry Categories 441 Motor vehicle and parts dealer 442 Furniture and home furnishings stores 443 Electronics and appliance stores 444 Building material and garden equipment and supplies dealers 445 food and beverage stores 446 Health and personal care stores 447 Gasoline stations 448 Clothing and clothing accessories stores 451 Sporting goods, hobby, book, and music stores 452 General merchandise stores 453 Miscellaneous store retailers 454 Non-store retailers

Basic Terminology Retail Sales Associates Employees who sell merchandise and products to customers Have sales training Extensive knowledge of the product they are selling Variety of Merchandise The product or merchandise lines that a retailer carry Merchandise Assortment The number of items within each merchandise line

Types of Retail Ownership Single (Sole) Proprietorship Owned by one person Makes all decisions regarding the business Responsible for all financial losses or gains Partnership Agreement between two or more people Both provide financing for the business Corporation Sells stocks to investors who become the owners More expensive to start Less risk, owners are liable only for how many shares they have

Types of Store Ownership Independent store Privately owned, one location No agreements with merchandise groups or franchises Chain Store At least two locations Owner is less involved with customers Store Groups Different stores owned by same company Old Navy, Gap, Banana Republic

Types of Store Ownership Manufacturer Retail Stores Owned by manufacturer Sell only their own products Franchise Business Franchisor leases it’s name to the franchisee the franchisor receives a percentage of the profits of each franchise Cooperatives Owned by a group of people Only sell to members of the co-op

Types of Business Ownership Voluntary chain store Group of retail store’s that operate independently but purchase product together to save money Lease Department Small business rents space in a large business Lease Dealerships Large company leases space to a dealer to sell their product

Types of Store-Based Retailers Store-Based Retailer Operates and conducts business from a fixed location General-Merchandise Retailer Sells a large variety of merchandise Department Store Separates merchandise into different departments or sections Branch stores Baby gap Twig stores Wal-Mart neighborhood

Types of Store-Based Retailers Junior Department Store Carry many varieties of merchandise, but all merchandise lines Bed, Bath and Beyond Specialty Stores Sell one type of merchandise Foot locker, Barnes and Noble Category Specialty Stores Carry large assortment of merchandise at a lower price Circuit City

Types of Store-Based Retailers Discount Department Stores TJ Maxx Variety Store Small retail outlet sells variety of low-priced merchandise Off-Price Stores Ross Outlet Stores Owned by Manufacturer Warehouse and Wholesale Clubs Costco, Sam’s Club

Food Retailers Supermarket Self service, sells mostly food and other retail merchandise Smiths, Albertsons Convenience store Sells food and household items at higher prices Super centers Combo of large discount department store and a discount supermarket. Wal-mart, Target

Types of Service retailers Service retailer Sells something intangible-- an activity Types of service retailers Financial-Services retailer Hospitality and lodging services Maintenance and repair Automobile repair Personal services Recreation and tourism Rental services Restaurant and food services Security services Transportation services

Channels and E-Tailing Multichannel retailing Using websites and catalogs as well as a store E-Tailing The selling of goods and services using the internet Non-Store Retailing Direct selling Avon, Mary Kay Vending machines Catalogs Internet Direct mail Telephone selling Infomercials TV shopping channels Street vendors

Key terms NAICS Sales Associates Merchandise Variety Merchandise Assortment Single proprietorship Partnership Corporation Independent store Entrepreneur Chain stores Franchisee Franchisor Franchise Store-based retailer General merchandise retailer Department store Junior department store Specialty store Discount department store Variety store Off-price retailer Outlet store Warehouse club Food retailer Super market Convenience store Super center Service retailer Financial services retailer Hospitality and lodging services Maintenance and repair service retailer Personal services Recreation and tourism services Rental services Multi channel retailing E-tailing Non-store retailing Direct selling Vending machine Catalog retailer Direct mail Telephone selling Infomercial TV shopping channels Street vendors