A store that sells fashion (clothing and footwear) can include an exclusive brand outlet (EBO), a Multi-Brand Outlet (MBO), or a Large format store (LFS). Some stores are specific to a particular category, while others provide a broad selection of merchandise that may be classified under various categories. Based on these variables, there are eight main kinds that retail shops can offer.
The word “retail” means “breaking the bulk by selling smaller quantities of goods to customers to use or for consumption instead of reselling. Retailers sell through physical/online/direct selling methods. Retail stores are an area in which the business is designed to provide goods directly to customers. The physical stores are different in size (square feet )) and kind. Supermarket and hypermarket retailers generally have a big size store that sells a variety of goods. They usually are located in the primary trade region. Fashion retailers that sell apparel bags, footwear, and other accessories are found in many formats for retail. The range of merchandise offered by these stores is contingent on the size of their stores and type of merchandise, the diversity and range of offerings, and the categories. This store might include an exclusive outlet (EBO), a Multi-Brand Outlet (MBO), or a large format store (LFS). Some stores are category-specific, while others offer a broad selection of items that can be classified under various categories. Based on these elements, eight main kinds of retail stores provide a variety of fashion products, such as clothing, accessories, furniture, footwear, and cosmetics. However, the different formats of stores might not have the same fashion-forward items.
Department stores
A department store can be described as an outlet that sells items that fall into different categories. These stores typically include products that are related to clothing and appliances, toiletries, household goods, kitchenware, electrical appliances, furniture, and, often, food items. Managers of departments or customers are accountable for the management of their product lines as well as the advertising and promotion operations of each department. Examples include Shoppers Stop, Macy’s, Savarna stores, Big Bazaar, JioMart, and numerous others. They use a broad and varied variety strategy.
Supermarket
Supermarkets are big retail stores classified as self-service stores that sell food items as well as non-food products; for non-food items, categories, such as bakeries and pharmacies, can be included. It is a broad category that covers FMCG products. Customers choose their product from a variety of options. They are able to meet their customer’s needs by providing variety, convenience, and service requirements. They employ a broad and deep selection strategy. Examples include More, DMart, Star Bazaar, and many more.
Hypermarket
Hypermarkets typically combine supermarkets and departmental stores, offering vast merchandise all under one roof. It could include clothing and clothing, food items and kitchenware, appliances, household products, pharmacies, furniture, bakeries, and frozen foods in greater quantity and Variety. It provides a single-stop shopping experience to customers. Walmart, Metro Cash & Carry, and IKEA are some of the top examples. They employ a broad variety strategy.
Specialty Store
A specialty store sells a variety of items in one vertical category. These stores offer products that are of similar brands within a similar type. The specialty stores can offer many brands from a specific segment of goods. The store follows a strict and broad assortment. For example, Nykaa sells only cosmetics and beauty items, but they also sell several brands. Lenskart and Pepperfry are some other examples of specialty stores.
Convenience store
Convenience stores are located in an easily accessible location from your office or home. They typically stock items with items that are not planned, including snacks, groceries, food, soft drinks, food confectionaries, toiletries, magazines, newspapers, etc. For instance, 7-Eleven is a convenience store. It has a limited and extensive selection strategy.
Stores with discounts
Discount stores are obvious by their name. The merchandise is sold at a cheaper cost than traditional retail stores. Certain discount stores function as department stores that offer a wide selection of merchandise. The prices are generally lower due to the fact that they purchase in bulk and the stores are constantly full or overloaded with goods. Examples of such stores include DMart, More, Walmart, and others that follow a broad assortment.
Outlet factory
Factory outlets are where a company sells goods that are no longer in the market or have minor damage for a lesser price. The prices are lower because they are shipped directly from the manufacturer, eliminating intermediaries or distribution companies. The main difference is how good the product. Each brand has its factory outlet. It is based on a limited and narrow selection strategy.
Store online
A store online is a web-based site or application that facilitates electronic commerce. It lets customers peruse the catalog of products or services prior to purchasing. These stores offer an extensive selection of products and provide a variety of options for products as well as post-purchase services for customers.
Omni-channel
Brick-and-mortar stores that promote and sell their products online are a common illustration of an omnichannel retailer. This is a growing type of business, and numerous online retailers have set up physical stores and vice versa. Customers can preview their products ‘ sizes, colors, and colors online and then experience the feel of the same items in stores physically. Certain online stores, like Lenskart or Revlon (cosmetics), offer the capability of virtual trials. Lenskart has brick-and-mortar stores, and Revlon brands are sold at major departmental stores as well as cosmetic stores. Other brands, like Pepperfry, began as an online shop and transformed into physical stores where customers can try, feel, and touch its products. Pepperfry is a furniture-specific store, and Lenskart is a specialized eyewear store. Both use a narrow and deep selection strategy.
Fashion Inventory Assortment Plan
Stores’ merchandise comes with a variety of features that can be divided into different types or lines of products. Each class has a specific function or function that meets the needs of a particular customer. It is possible to further categorize merchandise according to these designs, and retailers can create plans for sales and purchases. Every item that falls under a classification is assigned a unique identification number and is identified as an inventory-keeping ununitSKU) (Bohlinger 2001).
Fashion items can be classified on the basis of
A) the gender (like menswear and womenswear),
B) functional or end-user,
c) seasonality,
d) fashionability and styles (whether fashionable as well) for the item.
An assortment plan typically is based on the classification of the product in categories as well as subcategories. Table 1 provides details about an assortment plan for products or SKU plan. The methods for assortment can assist retailers in developing an extensive buy plan and allocating funds for each category, controlling the space in stores, and ensuring the best customer experience and satisfaction.
Each classification system is built on a hierarchy of levels or styles. The order is determined by the importance assigned to each element by the customer. For instance, when buying the case of a bridal lehenga, color fabric, material o, and surface embellishment along with waistline, length, and fittings could be the most important fashion features that the buyer wants. Table 1 provides a classification of women’s handbags based on style, material colors, and materials. This is based on historical sales data analysis and an assumption for the future that a clutch bag has a better likelihood of selling than bags for totes. This kind of planning will help the purchaser and the seller reach their sales goals. The SKU plan can help allocate stock, be aware of the movements of the store, aid in the re-order process, and reduce the cost of carrying inventory (Kincade Gibson, Kincade, and Woodard 2004).
Store Assortment Plan
An assortment plan outlines the number of products and units the store must carry in order to offer the best options to customers. The store’s merchandise assortment plan comprises three key elements for determining the best mix of products: Variety (no. of brands that a retailer sells, such as menswear, womenswear and cosmetics, appliances, toys, and sports items) and breadth (the number of brands each line carries) as well as depth (the average quantity of SKUs every brand in a bar has in terms of size, color as well as prints and costs).
Since every retailer must choose what items to offer and in what quantities, it is their responsibility to determine the appropriate mix that is most appropriate to their strategies for retail. It’s based on a variety of aspects like:
* Type of store size, dimension, location position, competitors profile of customers trade area and investment
* sales history data from the past responses to customer complaints and returns and sales, the date of sales, and the lean period
* Variety and depth of product excellent taste, current trends Quality, price range, and timing of life-cycle of a product
* Consumer wants and needs in the form of frequent impulse purchases, social and cultural influences
* kinds of products available, including specialty goods and convenience items, fashion, seasonal goods, and private brands vs national brands
Elimination of products and store space management restrictions on product lines as well as budgetary plans.