Product lines carried

Retail businesses may also be classified according to the product lines they carry. Most consumer products are sold through six different types of stores: (1) department stores, (2) specialty stores, (3) supermarkets, (4) convenience stores, (5) superstores, and (6) discount houses.

Department Stores. Department stores sell a variety of merchandise grouped into well-defined departments. The usual departments are men’s and boys’ wear, women’s wear, jewelry, cosmetics, household linens and towels, home furnishings, appliances, and furniture. Department stores are large stores that usually offer many services including credit, delivery, merchandise returns, and personal assistance. J.C. Penney and Sears are two well-known national department store companies.

Specialty Stores. Stores that carry a limited variety of goods but a large assortment of each item are called specialty stores. An assortment refers to the range of choice for each kind of product offered. For instance, because it carries mainly furniture items, a furniture store will probably have a much larger assortment of lounge chairs than a department store. In most cases specialty stores are named according to the main products sold: bookstores, hardware stores, jewelry stores, and computer stores.

Specialty stores sometimes handle unusual imported or domestic items that are not found in other types of stores. The owner of a bookstore, for instance, may specialize in finding and selling rare books. A jewelry retailer may make trips to Europe to buy unique rings and bracelets to resell in the store.

Supermarkets. A supermarket is a large retail store that sells a wide variety of food and some nonfood items and features self-service and low prices. Supermarkets are divided into sections such as canned goods, frozen foods, meats, produce, and dairy products. Nonfood items such as toothpaste, magazines, kitchen utensils, pet supplies, shampoo, and cleaning supplies are also sold. It is estimated that supermarkets account for three fourths of the grocery store business in the United States.

Prior to the 1930s, food retailing occurred in small neighborhood grocery stores. Customers were waited on by clerks who stood behind counters that separated the customers from the merchandise. Clerks filled customers’ orders and sometimes delivered the groceries to their homes.

The first supermarkets were independent stores that opened in the 1930s. A large number of independent supermarkets remain; however, chain stores now dominate the industry.

Convenience Stores. Convenience stores carry limited varieties of food items ‑ bread, milk, ice cream ‑ that meet customers’ needs between major shopping trips. They offer convenience rather than a wide selection of products. Convenience store prices are often higher than supermarket prices. Many shoppers are willing to pay higher prices when buying only a few items because they are able to make their purchases quickly and easily. Convenience stores are usually in easy-to-reach locations near residential areas.

Superstores. Very large stores that carry foods and numerous other products and services that consumers routinely buy are called superstores. The goal of superstores is to meet customers’ ordinary needs at low prices.

Supermarkets fulfill consumers’ needs for food items and a limited number of nonfood items. Superstores go beyond this by stocking complete lines of health and personal care products, hardware items, some clothing, lawn and garden products, greeting cards and stationery, books, toys, records, and low-priced housewares such as cooking utensils. They also provide services such as dry cleaning and shoe repair. Some even have branch banks located inside the stores.

Discount Houses. Discount houses are stores that offer wide varieties of products at so-called discount or low prices. Their prices are somewhat, though not always, lower than the prices of other retailers such as department stores. Discount houses sell appliances, furniture, clothing, health and beauty products, and even food items.

Discounters are able to charge lower prices because they buy in large quantities from manufacturers and other suppliers at reduced prices. In addition, they lower their operating costs by emphasizing self-service shopping. Fewer salespeople are needed to assist customers. The stores are usually in low-rent locations and do not have the elaborate fixtures, decorations, or displays of many other retail stores. These savings can be passed on to customers through reduced prices.