Types of Retailers & Multichannel Retailing

As this chart displays, you can see the different types of retailers out there.  There are much more than I could come up with. I forgot about the telephone/mail order, or vending machines as a type of retailer.  In theory, if you sum it up it comes down to four main categories of retailing.  For example, according to this person, there are the 

High-service retailers which are the first type of retailers. They are those retailers who provide a large or selective choice of merchandise with the elements of service, location and other kinds of attractive features which other regular retailers don't offer to their customers.

The second type of retailers are Price Focus retailers. These retailers have their main focus on low prices, which is a point of immenseattraction for most customers. 

The third category of retailers are called Convenience retailers. These retailers neither focus on services nor on low prices. In lieu they offer convenience to their customers in terms of location and accessibility.

The last class of retailers are One-stop-shopping retailers. They are all-rounders in the retailing business and provide all of the above-mentioned features to their customers along with an offering of eclectic range of merchandise.

I also want to add this chart as well because it has some good information that is relative to subject matter.  It's an extensive knowledge.  

Moving on to the multichannel retailer, retailers globally have realized that an effective Multichannel strategy is essential to drive profitable growth in Retail. Multichannel retailing is about providing a consistent customer experience across all the channels that the customer interacts with the retailer through use of emerging technologies, improved

operating processes that focus on multiple channels and empowered employees who

can think of solutions to customer’s needs across channels, so by providing different method of shopping will help customers be more satisfied with the experience. 

Multichannel retailing has a lot of benefits too. For instance, these three things are very important when it comes to the customer's shopping experience;

Flexibility: Convenience and shopping options, channel independent promotions

and coupons

Enablement: Self-service capability for research, ordering and purchase

Experience: Uniform customer support, Deep product catalogs and access to

enterprise wide inventory

I wouldn't imagine that multichannel operation is an easy task. It will take hard work from everyone involved, and simplicity would be the key.  

The below image is a table showing the different change of position concerning multichannel method. 

 

You can see that  customers have been drifting towards the

online channel at the cost of moving away from traditional channels such as the store

and catalog.

Channel wise spend 2005 2004 2003 2002

Store       68% 72% 74% 78%

                        Catalog   5%    6%   6%   6%

Online     27% 22% 20% 16%

Source: Goldman, Sachs, Nielsen//NetRatings, and Harris Interactive eSpending Report,

December 2005

Sources:

http://www.blurtit.com/q826815.html

http://www.mcgrawhill.ca/college/shapiro9/olc/olc/graphics/shapiro9bm_s/ch13/slideshows/sld00

2.htm

http://www.wipro.com/retail/images/Integrated%20Multi-Channel%20Retailing.pdf