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A2 Classification of Retailers

Store-based retailers (bricks and mortar) are those that connect with customers in a physical location. Businesses can showcase their products to visiting customers. This includes allowing customers to touch, feel and sample products. Clothing stores offer customers the opportunity to try on any clothing. Sales staff can support customers in their purchases and explain the benefits of different products.

Non-store-based retailers do not use a physical space to connect with their customers. Sales can be made through direct selling, distance selling and online selling. Benefits of non-store based retailing include lower premises costs and the ability to collect data from customers.

Product retailing refers to the sale of tangible goods. Once a product is purchased by a customer, ownership is transferred and they can physically take the product away with them. It would be expected that the product each customer receives is the same.

Examples of product retailers include clothing stores, furniture stores,

Service retailing is the provision of intangible products. This usually refers to skills, knowledge or expertise of the staff delivering the service. Good investment into the people delivering the service is essential. The service received can differ from customer to customer.

Examples of service retailers are hairdressers, financial advisors, insurance brokers, healthcare and travel agents.

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