Retailing

1
Retailing

• Includes the business activities involved with
  the sale of goods and service to the final
  consumer for personal, family, or household use
• Final step in the distribution channel

2
Types of retailers by ownership

• Independent
• Corporate (retail) chain
• Franchise
• Leased department

3
Independent store

• Operates only one outlet
• Personal service
• Good location
• Close customer contact
• Attracts entrepreneurs

4
Corporate (retail) chain

• Multiple outlets
• Centralized purchasing and decision making
• More complex organizations

5
Franchising

• Contractual agreement between a franchisor and a
  retail franchisee
• Franchisee runs a certain form of business under
  an established name and according to specific
  rules

6
Leased department

• Section of a store rented to an outside party
• Operates under store rules
• Pays a percentage of sales as rent

7
Types of Retailer by strategy

• Convenience store
• Conventional supermarket
• Food-based supermarket
• Combination store
• Specialty store
• Category killer
• Traditional department store
• Full-line discount store
• Warehouse club

8
Convenience store

• Well-situated
• Food oriented
• Limited assortment
• Low service
• High prices

9
Conventional supermarket

• Departmentalized food store
• Food
• Related products

10
Food-based superstore

• Broad range of food and non-food items

11
Combination store(supercenter/hypermart)

• General merchandise and grocery items
• General merchandise25-40 of sales
• Efficient operations
• Increased impulse purchases
• Greater number of transactions

12
Specialty store

• Limited variety
• Great depth
• Usually one product line, or several related
  product lines

13
Category killer

• discount specialty store
• Especially large specialty store

14
Traditional Department Store

• Great variety
• Depth of assortment varies by department
• Often anchor stores
• Average to above average prices

15
Full- line discount store

• Low prices
• Low service
• Broad variety
• Shallow assortment
• Lower rent locations

16
Warehouse club

• Wholesale and retail consumers
• Pay yearly dues for membership

17
Non-store retailers

• Direct marketing
• Vending machine
• Direct selling

18
Direct marketing

• Consumer is exposed to a good or service by a
  non-personal medium
• Order by mail, phone or PC

19
Vending machine

• Coin or card operated machinery to dispense goods
  or services
• Require intensive training
• Cards and electronic tracking

20
Direct selling

• Involves personal contact with consumers in their
  homes and other non-store locations and phone
  solicitations
• Phone
• Referrals
• Party method

21
Considerations

• Location
• Atmosphere
• Scrambled merchandising

22
Location

• Isolated
• Unplanned business district
• Planned shopping center

23
Atmosphere

• Physical attributes of a retailer that are used
  to develop an image and draw customers
• Exterior
• General interior
• Store layout
• Display

24
Scrambled merchandising

• Adding goods and services that are unrelated to
  each other and the firms original business
• One stop shopping
• Increased traffic
• High profits
• Increases competition

25
Technological advances

• Computerized POP
• Self-checkout
• Video kiosks
• Site selection software
• Networking distribution
• Anti-theft developments
• Computerized reorder