How do you classify a retailer?

RETAIL TRADE CLASSIFICATION

According to the activity or products sold

Like wholesalers, retail stores can be classified according to the type of products

sold; Its functional classification can be found in the Mexican Catalog of Activities

and Products of the SECOFI Mexican Business Information System.

According to property relations and links

In the classification of retailers according to the ownership and connection criteria,

the greater or lesser degree of independence of the establishment is

considered. Independence is a function of the scope of ownership (the store itself,

the products sold, and the trade name used) and existing contractual agreements

with other companies. Based on those criteria, retailers can be classified into the

following ten types:

a) Independent trade. It is the one that consists of a single store, owned by an

individual merchant or a company. The establishment is generally small and is

usually run by the owner, who usually has a good understanding of the

clientele. On the other hand, it has little capacity to negotiate purchase prices,

given the reduced volume of its sales. The importance of this type of establishment

tends to decrease.

b) Rented section. It means selling without your own store. The goods are owned

by the merchant, but the store space is rented to another retailer, for example, a

department store, with which the establishment is shared. The lessee freely

manages the activity, within his space, but must accommodate the lessor's

schedule and promotions. In return, it benefits from the transit of the store and the

advertising it carries out.

c) Voluntary retail chains. They consist of the adhesion of the retailers to an

association, constituting a purchasing center that groups together all of them to get

better prices. The associate is free to buy from the chain or from another

supplier. They are usually sponsored by a wholesaler.

d) Retailers' cooperatives. The link in this case is greater. Retailers associate by

forming a cooperative. The partners obtain a cooperative return based on the

purchases made and a series of complementary services.

e) Consumer cooperatives. They are similar to the previous ones in terms of the

activities they carry out and the form of administration. The difference, in this case,

lies in that those who associate are the consumers, forming a cooperative that acts

as a wholesaler, buying from the manufacturers, and as a retailer, selling to the

final consumer.

f) Franchises. Franchises are contracts that cover a wide range of services,

supplies of goods and transfer of the trade name or brand by the franchisor or

How would you classify as a type of retailer?

What are three common ways to classify retailers?

How would you define retailer?