Classification is a catergory into which something is put. Retailers in the UK are so diverse so there are many different ways we can classify them. One way retailers can be classified is by ownership, they can either be a sole trader, a partnership or a limited liability company (public or private). Retailers can also be classified by the type of retailer they are.
Retailers can be classised by the size of the store according to the number of employees. A micro-business would be a store which has less than ten employees and have a turnover under two million pounds. A small business has less than fifty employees and have a turnover under 10 million pounds. A medium business has less than 250 employees and have a turnover under fifty million pounds. Large businesses have either more than 250 employees or a turnover of over 50 million pounds.
Pricing policy is another way of classifying retailers. Premium pricing is used by high end brands such as Gucci or Chanel. Economy pricing is used by retailers such as primark, who make products with minimum costs and do not advertse. Competitor pricing is used by brands such as Topshop or River Island. Discount pricing and psychological pricing is used by many retailers.
Retailers can be classified by type of activity, whether they're a food, non-food or non-store retailer. Also by the range of merchandise they sell such as Womens wear, menswes, beauty or electrical. Method of customer contact is another way of classifying retailers, they could be face-to-face, online or mail order.
Retailers can be classified by location. They could be out of town in a retail park, on a local high street or in a shopping mall.
CLASSIFICATION OF RETAILERS