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How do you distinguish modern retail formats from traditional formats?

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How do you distinguish modern retail formats from traditional formats? Explain with examples.


Posted on : 2024-10-09 00:02:33 | Author : IGNOU Academy | View : 33

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The distinction between modern retail formats and traditional retail formats is essential for understanding the evolution of the retail industry. While both formats serve the fundamental purpose of selling goods and services to consumers, they differ significantly in terms of structure, operations, and consumer experience. 

Traditional Retail Formats

Traditional retail formats are characterized by small, family-owned stores or local markets that have been the norm for many decades. These formats include neighborhood grocery stores, general stores, markets, and mom-and-pop shops. Typically, these stores operate on a smaller scale and emphasize personal service and community engagement. 

Key Features of Traditional Retail Formats:

1. Personalized Service: One of the defining features of traditional retail is the emphasis on personalized service. Store owners often know their customers by name and can provide tailored recommendations based on individual preferences. For instance, a local butcher may remember a customer’s favorite cut of meat and make special recommendations.

2. Limited Product Range: Traditional retailers often have a more limited selection of products compared to modern formats. They focus on a specific category or a few categories, such as groceries or clothing, and typically carry fewer brands within those categories. For example, a local grocery store might only stock a few brands of cereal, in contrast to larger supermarkets that carry dozens.

3. Physical Location: Traditional retail formats are typically centered around a physical storefront, often located in residential neighborhoods or town centers. The layout is usually straightforward, with products displayed on shelves in an open space. 

4. Cash Transactions: Many traditional retail outlets still rely heavily on cash transactions, although this has been changing in recent years. Customers may prefer to pay in cash due to the personal relationship they have with the store owner.

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👦
Nanda D

Answered on : 2025-01-05 10:41:49

Why do you understand by psychological factors.differentiate between psychological factors and personal factors.


👦
Nanda D

Answered on : 2025-01-05 10:37:10

Why do you understand by psychological factors.differentiate between psychological factors and personal factors.





Degree : BACHELOR DEGREE PROGRAMMES
Course Name : Bachelor of Business Administration in Retailing
Course Code : BBARIL
Subject Name : Overview of Retailing
Subject Code : BRL 101
Year : 2024 2025



IGNOU BRL 101 Solved Assignment 2024 2025
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