A2 Retail Ownership
Independent retailers are the product of an entrepreneur who has built up their own business from the ground up. They came up with their own ideas, invested capital and made their own decisions on branding, products and processes. They may have used consultants in the process but ultimately made their own decisions.
Multiples, or multi-channel retailers are retailers that reach their customers through a range of channels. This may include a brick-and-mortar store, a website, social-media stores or third part retailers such as Amazon.
Chain stores are groups of stores with the same ownership that sell the same line of goods. Examples include John Lewis, Marks & Spencer and Tesco. Different branches can be set up in different geographical areas to reach more customers. Management, warehouses and distribution may be centralised.
Franchises are retailers who pay for the rights to use the brand name and sell the products of a larger existing business. Examples include McDonalds, Starbucks and Dunkin Donuts. Franchisees have the benefits of selling a known successful product and support from the franchisor. However, these retailers are restricted in making decisions.
Cooperatives are retailers who are owned by their members. In retail, these are usually the customers. The most famous example are The Co-op store in the UK. When profits are made, they are distributed amongst their members based on how much they have spent. Another example of a cooperative is John Lewis which is owned by employees. Each employee is issued shares as part of their contract. Members of cooperatives are involved in major decisions.
Social enterprises are businesses who’s primary aim is the benefit society and the planet before providing profits to their shareholders.
