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IntroductIon Product classification helps the retailers to focus on 
the consumers’ buying behaviour. The retail businesses 
use the consumers’ buying behaviour for designing the 
marketing strategies to increase the sale of goods. 
The types of products, and how the firms buy these 
goods is equally important as the firm classifies these 
products and develops the marketing campaigns for 
increasing the sales. 
In the retail industry, the store operations assistant 
has the knowledge of processing the goods at the retail 
store. Generally, a manual is prepared by the retail store 
highlighting the procedures and policies for receiving 
and delivering goods. These procedures and policies are 
usually common for all stores.
The store operations assistants should check their 
store’s policy for receiving and delivering goods. 
All type of businesses, especially retail stores, must 
store goods safely, as well as ensure that the firm 
fulfils the legal duty to protect the health and safety 
of those affected by their business. The right approach 
to storage can also help firm owners in reducing 
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The 
first session is devoted to classification which includes 
Receiving and 
Storage of Goods
2
Page 2


IntroductIon Product classification helps the retailers to focus on 
the consumers’ buying behaviour. The retail businesses 
use the consumers’ buying behaviour for designing the 
marketing strategies to increase the sale of goods. 
The types of products, and how the firms buy these 
goods is equally important as the firm classifies these 
products and develops the marketing campaigns for 
increasing the sales. 
In the retail industry, the store operations assistant 
has the knowledge of processing the goods at the retail 
store. Generally, a manual is prepared by the retail store 
highlighting the procedures and policies for receiving 
and delivering goods. These procedures and policies are 
usually common for all stores.
The store operations assistants should check their 
store’s policy for receiving and delivering goods. 
All type of businesses, especially retail stores, must 
store goods safely, as well as ensure that the firm 
fulfils the legal duty to protect the health and safety 
of those affected by their business. The right approach 
to storage can also help firm owners in reducing 
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The 
first session is devoted to classification which includes 
Receiving and 
Storage of Goods
2
Receiving and StoRage of g oodS
25
Convenience 
Goods
Shopping 
Goods 
Specialty 
Goods 
Types of 
Goods 
Consumer 
Goods
Industrial 
Goods
Durable 
Goods  
Semi-durable 
Goods 
Non-durable 
Goods 
Materials and 
Parts
Capital 
Goods 
Supplies
Industrial 
Services
consumer goods, the second session covers the procedure 
for receiving goods in retail operations, the third session 
deals with storage of goods received, and the fourth 
session explains the process of handling goods. 
SeSSIon 1: c laSSIfIcatIon of GoodS
Meaning of goods
Goods are bundle of utilities, which are inherently 
useful and relatively scarce tangible item, such as 
article, commodity, merchandise, material, supply, 
wares, produced from agricultural, manufacturing, 
construction or mining activities. In terms of economics, 
it is called commodity. 
There are two kinds of goods—economical 
and free goods. Goods that can be obtained 
with money are called economical goods 
and goods which are freely available are 
called free goods.  
Types of goods
There are two types of goods 
which are dealt with in 
retail operations—consumer 
goods and industrial goods 
(Fig. 2.1)
Consumer goods
Consumer goods are those 
which are ready for consumption 
by consumers, such as clothing 
or food (Fig. 2.2[a], 2.2[b], 2.2[c], and 
2.2[d]). 
Further, the types of consumer goods have 
been classified below:
 (a) Convenience goods: Goods which are easily 
available to the consumer, without any extra effort 
are called convenience goods. These goods are 
consumed regularly and purchased frequently. For 
example, Fast Moving Consumer Goods (FMCG), 
such as food, confectionaries, milk, etc.
Fig. 2.1 Types of Goods
Page 3


IntroductIon Product classification helps the retailers to focus on 
the consumers’ buying behaviour. The retail businesses 
use the consumers’ buying behaviour for designing the 
marketing strategies to increase the sale of goods. 
The types of products, and how the firms buy these 
goods is equally important as the firm classifies these 
products and develops the marketing campaigns for 
increasing the sales. 
In the retail industry, the store operations assistant 
has the knowledge of processing the goods at the retail 
store. Generally, a manual is prepared by the retail store 
highlighting the procedures and policies for receiving 
and delivering goods. These procedures and policies are 
usually common for all stores.
The store operations assistants should check their 
store’s policy for receiving and delivering goods. 
All type of businesses, especially retail stores, must 
store goods safely, as well as ensure that the firm 
fulfils the legal duty to protect the health and safety 
of those affected by their business. The right approach 
to storage can also help firm owners in reducing 
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The 
first session is devoted to classification which includes 
Receiving and 
Storage of Goods
2
Receiving and StoRage of g oodS
25
Convenience 
Goods
Shopping 
Goods 
Specialty 
Goods 
Types of 
Goods 
Consumer 
Goods
Industrial 
Goods
Durable 
Goods  
Semi-durable 
Goods 
Non-durable 
Goods 
Materials and 
Parts
Capital 
Goods 
Supplies
Industrial 
Services
consumer goods, the second session covers the procedure 
for receiving goods in retail operations, the third session 
deals with storage of goods received, and the fourth 
session explains the process of handling goods. 
SeSSIon 1: c laSSIfIcatIon of GoodS
Meaning of goods
Goods are bundle of utilities, which are inherently 
useful and relatively scarce tangible item, such as 
article, commodity, merchandise, material, supply, 
wares, produced from agricultural, manufacturing, 
construction or mining activities. In terms of economics, 
it is called commodity. 
There are two kinds of goods—economical 
and free goods. Goods that can be obtained 
with money are called economical goods 
and goods which are freely available are 
called free goods.  
Types of goods
There are two types of goods 
which are dealt with in 
retail operations—consumer 
goods and industrial goods 
(Fig. 2.1)
Consumer goods
Consumer goods are those 
which are ready for consumption 
by consumers, such as clothing 
or food (Fig. 2.2[a], 2.2[b], 2.2[c], and 
2.2[d]). 
Further, the types of consumer goods have 
been classified below:
 (a) Convenience goods: Goods which are easily 
available to the consumer, without any extra effort 
are called convenience goods. These goods are 
consumed regularly and purchased frequently. For 
example, Fast Moving Consumer Goods (FMCG), 
such as food, confectionaries, milk, etc.
Fig. 2.1 Types of Goods
Store o perationS a SSiStant – ClaSS iX
26
Convenience goods can be classified into Staple 
Goods and Impulse Goods. 
 (i) Staple goods: Goods which fulfill the customer’s 
basic needs are called staple goods. For example, 
bread, butter, milk, sugar, etc. 
 (ii) Impulse goods: Goods which are bought without 
prior planning are called impulse goods. For 
example, chocolates, soft drinks, wafers, etc.
 (b) Shopping goods: Shopping goods are not 
purchased or consumed as frequently by 
consumers as convenience goods. Shopping goods 
are expensive and semi-durable in nature. For 
example, clothes, footwear, televisions, radio, 
home furnishings, jewellery, etc. 
 (c) Specialty goods: Goods which are unique, 
unusual, and special are called specialty goods. 
For example, antique goods, high and luxury 
automobiles, wedding dresses, etc. 
 (d) Unsought goods: Goods that are available in the 
market but the customers do not know about them 
or do not think of buying them unless needed, are 
called Unsought goods, such as insurance. 
   Apart from the above mentioned, retail goods are 
also classified into durable, semi-durable and non-
durable goods. 
 (a) Durable goods: Goods which need not be purchased 
frequently as they are made to last for a longer 
period of time are called durable goods (Fig. 2.3). 
Fig. 2.2 (c) Consumer Goods
Fig. 2.2 (d) Consumer Goods
Fig. 2.2 (a) Consumer Goods Fig. 2.2 (b) Consumer Goods
Page 4


IntroductIon Product classification helps the retailers to focus on 
the consumers’ buying behaviour. The retail businesses 
use the consumers’ buying behaviour for designing the 
marketing strategies to increase the sale of goods. 
The types of products, and how the firms buy these 
goods is equally important as the firm classifies these 
products and develops the marketing campaigns for 
increasing the sales. 
In the retail industry, the store operations assistant 
has the knowledge of processing the goods at the retail 
store. Generally, a manual is prepared by the retail store 
highlighting the procedures and policies for receiving 
and delivering goods. These procedures and policies are 
usually common for all stores.
The store operations assistants should check their 
store’s policy for receiving and delivering goods. 
All type of businesses, especially retail stores, must 
store goods safely, as well as ensure that the firm 
fulfils the legal duty to protect the health and safety 
of those affected by their business. The right approach 
to storage can also help firm owners in reducing 
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The 
first session is devoted to classification which includes 
Receiving and 
Storage of Goods
2
Receiving and StoRage of g oodS
25
Convenience 
Goods
Shopping 
Goods 
Specialty 
Goods 
Types of 
Goods 
Consumer 
Goods
Industrial 
Goods
Durable 
Goods  
Semi-durable 
Goods 
Non-durable 
Goods 
Materials and 
Parts
Capital 
Goods 
Supplies
Industrial 
Services
consumer goods, the second session covers the procedure 
for receiving goods in retail operations, the third session 
deals with storage of goods received, and the fourth 
session explains the process of handling goods. 
SeSSIon 1: c laSSIfIcatIon of GoodS
Meaning of goods
Goods are bundle of utilities, which are inherently 
useful and relatively scarce tangible item, such as 
article, commodity, merchandise, material, supply, 
wares, produced from agricultural, manufacturing, 
construction or mining activities. In terms of economics, 
it is called commodity. 
There are two kinds of goods—economical 
and free goods. Goods that can be obtained 
with money are called economical goods 
and goods which are freely available are 
called free goods.  
Types of goods
There are two types of goods 
which are dealt with in 
retail operations—consumer 
goods and industrial goods 
(Fig. 2.1)
Consumer goods
Consumer goods are those 
which are ready for consumption 
by consumers, such as clothing 
or food (Fig. 2.2[a], 2.2[b], 2.2[c], and 
2.2[d]). 
Further, the types of consumer goods have 
been classified below:
 (a) Convenience goods: Goods which are easily 
available to the consumer, without any extra effort 
are called convenience goods. These goods are 
consumed regularly and purchased frequently. For 
example, Fast Moving Consumer Goods (FMCG), 
such as food, confectionaries, milk, etc.
Fig. 2.1 Types of Goods
Store o perationS a SSiStant – ClaSS iX
26
Convenience goods can be classified into Staple 
Goods and Impulse Goods. 
 (i) Staple goods: Goods which fulfill the customer’s 
basic needs are called staple goods. For example, 
bread, butter, milk, sugar, etc. 
 (ii) Impulse goods: Goods which are bought without 
prior planning are called impulse goods. For 
example, chocolates, soft drinks, wafers, etc.
 (b) Shopping goods: Shopping goods are not 
purchased or consumed as frequently by 
consumers as convenience goods. Shopping goods 
are expensive and semi-durable in nature. For 
example, clothes, footwear, televisions, radio, 
home furnishings, jewellery, etc. 
 (c) Specialty goods: Goods which are unique, 
unusual, and special are called specialty goods. 
For example, antique goods, high and luxury 
automobiles, wedding dresses, etc. 
 (d) Unsought goods: Goods that are available in the 
market but the customers do not know about them 
or do not think of buying them unless needed, are 
called Unsought goods, such as insurance. 
   Apart from the above mentioned, retail goods are 
also classified into durable, semi-durable and non-
durable goods. 
 (a) Durable goods: Goods which need not be purchased 
frequently as they are made to last for a longer 
period of time are called durable goods (Fig. 2.3). 
Fig. 2.2 (c) Consumer Goods
Fig. 2.2 (d) Consumer Goods
Fig. 2.2 (a) Consumer Goods Fig. 2.2 (b) Consumer Goods
Receiving and StoRage of g oodS
27
Fig. 2.3 Durable goods Fig. 2.4 Semi-durable Products
Fig. 2.5 (a) and (b) Non-durable 
Products
(a)
(b)
 (b) Semi-Durable Consumer Goods: Goods 
that do not last for a very long time are 
called semi-durable goods (Fig. 2.4). For 
example, clothes, furniture, footwear, 
jewellery, home furnishings, etc. 
 (c) Non-Durable Consumer Goods: Goods 
which are for immediate consumption and 
are perishable in nature are called non-
durable goods (Fig. 2.5[a] and 2.5[b]). For 
example, vegetables, fruits, milk, bread, 
etc.
Industrial goods
A retail organisation buys goods for further 
production or use in business, these are called 
industrial goods. Industrial goods are not for 
ultimate consumption but are components used 
by industries or firms for producing finished 
goods (Fig. 2.6[a], 2.6[b] and 2.6[c].
These can be divided into three parts—
Materials and Parts, Capital Items, Supplies 
and Industrial Services.
 (a) Materials and parts: It is the basic unit 
of industrial production. It is used for 
producing finished goods. 
 (b) Capital goods: Capital goods make the 
functioning of an organisation smooth. For 
example, office accessories. 
Fig. 2.6 (a) Industrial Products
Page 5


IntroductIon Product classification helps the retailers to focus on 
the consumers’ buying behaviour. The retail businesses 
use the consumers’ buying behaviour for designing the 
marketing strategies to increase the sale of goods. 
The types of products, and how the firms buy these 
goods is equally important as the firm classifies these 
products and develops the marketing campaigns for 
increasing the sales. 
In the retail industry, the store operations assistant 
has the knowledge of processing the goods at the retail 
store. Generally, a manual is prepared by the retail store 
highlighting the procedures and policies for receiving 
and delivering goods. These procedures and policies are 
usually common for all stores.
The store operations assistants should check their 
store’s policy for receiving and delivering goods. 
All type of businesses, especially retail stores, must 
store goods safely, as well as ensure that the firm 
fulfils the legal duty to protect the health and safety 
of those affected by their business. The right approach 
to storage can also help firm owners in reducing 
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The 
first session is devoted to classification which includes 
Receiving and 
Storage of Goods
2
Receiving and StoRage of g oodS
25
Convenience 
Goods
Shopping 
Goods 
Specialty 
Goods 
Types of 
Goods 
Consumer 
Goods
Industrial 
Goods
Durable 
Goods  
Semi-durable 
Goods 
Non-durable 
Goods 
Materials and 
Parts
Capital 
Goods 
Supplies
Industrial 
Services
consumer goods, the second session covers the procedure 
for receiving goods in retail operations, the third session 
deals with storage of goods received, and the fourth 
session explains the process of handling goods. 
SeSSIon 1: c laSSIfIcatIon of GoodS
Meaning of goods
Goods are bundle of utilities, which are inherently 
useful and relatively scarce tangible item, such as 
article, commodity, merchandise, material, supply, 
wares, produced from agricultural, manufacturing, 
construction or mining activities. In terms of economics, 
it is called commodity. 
There are two kinds of goods—economical 
and free goods. Goods that can be obtained 
with money are called economical goods 
and goods which are freely available are 
called free goods.  
Types of goods
There are two types of goods 
which are dealt with in 
retail operations—consumer 
goods and industrial goods 
(Fig. 2.1)
Consumer goods
Consumer goods are those 
which are ready for consumption 
by consumers, such as clothing 
or food (Fig. 2.2[a], 2.2[b], 2.2[c], and 
2.2[d]). 
Further, the types of consumer goods have 
been classified below:
 (a) Convenience goods: Goods which are easily 
available to the consumer, without any extra effort 
are called convenience goods. These goods are 
consumed regularly and purchased frequently. For 
example, Fast Moving Consumer Goods (FMCG), 
such as food, confectionaries, milk, etc.
Fig. 2.1 Types of Goods
Store o perationS a SSiStant – ClaSS iX
26
Convenience goods can be classified into Staple 
Goods and Impulse Goods. 
 (i) Staple goods: Goods which fulfill the customer’s 
basic needs are called staple goods. For example, 
bread, butter, milk, sugar, etc. 
 (ii) Impulse goods: Goods which are bought without 
prior planning are called impulse goods. For 
example, chocolates, soft drinks, wafers, etc.
 (b) Shopping goods: Shopping goods are not 
purchased or consumed as frequently by 
consumers as convenience goods. Shopping goods 
are expensive and semi-durable in nature. For 
example, clothes, footwear, televisions, radio, 
home furnishings, jewellery, etc. 
 (c) Specialty goods: Goods which are unique, 
unusual, and special are called specialty goods. 
For example, antique goods, high and luxury 
automobiles, wedding dresses, etc. 
 (d) Unsought goods: Goods that are available in the 
market but the customers do not know about them 
or do not think of buying them unless needed, are 
called Unsought goods, such as insurance. 
   Apart from the above mentioned, retail goods are 
also classified into durable, semi-durable and non-
durable goods. 
 (a) Durable goods: Goods which need not be purchased 
frequently as they are made to last for a longer 
period of time are called durable goods (Fig. 2.3). 
Fig. 2.2 (c) Consumer Goods
Fig. 2.2 (d) Consumer Goods
Fig. 2.2 (a) Consumer Goods Fig. 2.2 (b) Consumer Goods
Receiving and StoRage of g oodS
27
Fig. 2.3 Durable goods Fig. 2.4 Semi-durable Products
Fig. 2.5 (a) and (b) Non-durable 
Products
(a)
(b)
 (b) Semi-Durable Consumer Goods: Goods 
that do not last for a very long time are 
called semi-durable goods (Fig. 2.4). For 
example, clothes, furniture, footwear, 
jewellery, home furnishings, etc. 
 (c) Non-Durable Consumer Goods: Goods 
which are for immediate consumption and 
are perishable in nature are called non-
durable goods (Fig. 2.5[a] and 2.5[b]). For 
example, vegetables, fruits, milk, bread, 
etc.
Industrial goods
A retail organisation buys goods for further 
production or use in business, these are called 
industrial goods. Industrial goods are not for 
ultimate consumption but are components used 
by industries or firms for producing finished 
goods (Fig. 2.6[a], 2.6[b] and 2.6[c].
These can be divided into three parts—
Materials and Parts, Capital Items, Supplies 
and Industrial Services.
 (a) Materials and parts: It is the basic unit 
of industrial production. It is used for 
producing finished goods. 
 (b) Capital goods: Capital goods make the 
functioning of an organisation smooth. For 
example, office accessories. 
Fig. 2.6 (a) Industrial Products
Store o perationS a SSiStant – ClaSS iX
28
 (c) Supplies: Supplies meet the day-to-day operation 
but do not become a part of the finished product. 
 (d) Industrial services: Industrial services are used 
in running a business smoothly. Industrial services 
can be available internally and externally, such as 
maintenance services, repair services, machinery 
repair and business advisory services. 
Fig. 2.6 (b) Industrial Products Fig. 2.6 (c) Industrial Products
Activity 1 
Chart out consumer goods from allotted goods.
Materials required
Allotted goods, boxes for allotment of goods.
Procedure 
1. Divide students into different groups.
2. Provide allotted goods and relevant boxes for separation to 
each group.
3. Ask each group to separate the consumer goods from the 
allotted goods.
4. Put the separated goods into relevant boxes.
5. Ask each group to separate the convenience, shopping, 
speciality, durable, semi-durable and non-durable goods.
6. Put the separated convenience, shopping, speciality, durable, 
semi-durable and non-durable goods in relevant boxes again.
From this practical exercise students should understand the 
different types of goods. 
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