Different types of retailers
Types of retailer | Examples |
Department stores | * Atkinsons (Sheffield) * Austins (Derry) * Bakers & Larners (Holt) * Baldwins * Banburys (Barnstaple and Tiverton) * Barretts (St Neots) * Barsleys (Paddock Wood) |
Multiple chains | Chain store or retail chain are retail outlets that share a brand and central management, and usually have standardized business methods and practices. In retail, dining, and many service categories, chain businesses have come to dominate the market in many parts of the world. * Tesco * Apple * MacDonald’s |
Independents | * Anna Falcke-small business * Bristol Books * Broadmead has more than 50 independent shops |
Supermarkets | * Aldi * Asda * Iceland’s * farm foods * Lidl * Morrison’s |
Specialist outlets | * Mercedes * BMW * Toyota |
Catalogue stores | * Argos * H&M |
Membership club | * Tesco * Shell |
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A franchise increases your chances of business success because you are associating with proven products and methods. Franchises may offer consumers the attraction of a certain level of quality and consistency because it is mandated by the franchise agreement.
Franchising provides benefits for both seller and buyer. For franchisors, the primary benefit is the ability to use other people's money to expand the brand more rapidly than they could either on their own or through investors or lenders. The initial franchise fee and ongoing royalties they collect allow franchisors to build their brand without sacrificing control to outsiders or the pressure of repaying lenders. The fees and royalties are used to fund operations at corporate headquarters, train and support franchisees, market and advertise the brand, improve the quality of goods or services, and build the brand in the marketplace.
For franchisees, benefits include: a higher chance of success than in a sole proprietorship; shorter time to opening; initial training and ongoing support; assistance in finding an optimal site; the selling power of a known brand; lower costs through group purchasing; use of an established business model; national and regional advertising campaigns; customer lead generation through websites and centralized call centers; and a network of peers (fellow franchisees) to provide advice and moral support through a company intranet, annual conferences, and franchisee associations; and, increasingly, assistance with securing funding.
* Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback from customers.
* My Starbucks reward program allows members to earn a free drink after every 15 purchases at participating Starbucks stores.
* It’s rare (if not none) for you to find a Starbucks ad in a billboard, ad space, newspaper or poster in places where you can expect to see advertisements for most other establishments, such as McDonalds.
* Starbucks stresses quality above price and other features it could emphasize.
* The company has went to great lengths to create a “community atmosphere” among premium coffee lovers.
* In 2001 Starbucks introduced the Starbucks Card, a stored-value card for customers to use and reload.