Hypermarket - Definition & Meaning
What is Hypermarket?
Hypermarket is a combination of a superstore and a department store. It covers a huge range of products from groceries to appliances to merchandise. They are made with the purpose of satisfying all needs of the customer in one trip to the store. Because of their large size and footprint, they are generally located just out of town or in sub-urban areas. They typically work on high-volume, low margins formula to make money.
The first hypermarket was started in 1963 in the US by Carrefour. Carrefour head at the time said that the purpose of the hypermarket was to “provide everything under one roof”. Like many fifty year olds, many experts feel that the hypermarkets are also going through a midlife crisis. In the advent of online retail and austere shopping behavior of customers, hypermarkets face a tough competition and need to reinvent themselves to remain the strong force that they are today.
The success of a hypermarket also depends on the country it is operating in. For example, in the advanced economies they are on a decline because the e-commerce business has captured its market. Whereas in the developing countries, where e-commerce is in an initial phase, hypermarkets are growing at a fast pace.
Typical examples of hypermarkets are Wal-Mart, Carrefour, Kmart, Target etc.
Hence, this concludes the definition of Hypermarket along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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