Retail Formats, Channels and Store Organisation
This domain covers how retail is delivered through store and non-store formats, how channels combine, and how a store is organised. The exam tests classification, channel choice and reporting relationships.
Core rules and concepts
- Formats include convenience stores, supermarkets, hypermarkets, department stores, specialty stores, discount stores, category killers, cash-and-carry and e-commerce.
- Channel structures include single-channel, multi-channel and omni-channel. Direct selling and marketplaces are different routes to customers.
- Store organisation typically includes store manager, assistant manager, section or department heads, sales associates, cashier, visual merchandiser, stock/backroom staff and security.
- Good organisation uses division of work, clear authority, span of control and coordination.
Worked example
A large self-service food and household store offers wide assortment, trolleys and checkout counters. It is best classified as a supermarket; if it adds substantial non-food ranges and very large scale, it moves toward hypermarket. Reasoning: classification depends on assortment, size, service level and pricing, not on the shop’s name. The store organisation would place food and non-food under separate section heads reporting to the store manager.
Traps that cost marks
- Format and channel are not the same: a supermarket is a format; e-commerce is a channel.
- A marketplace usually does not own the seller’s inventory.
- Do not confuse cash-and-carry with consumer retail; it serves business buyers.
Key points
- Classify formats by assortment, size, service and price.
- Multi-channel and omni-channel differ in integration.
- Store organisation needs clear reporting lines.
- Marketplace stock is normally seller-owned.