Retailing: Bricks and Clicks

1
Retailing Bricks and Clicks
(chapter 16)
2
Real People, Real Choices

• Eskimo Joes (Stan Clark)
• A new Oklahoma law raised the legal drinking age
  from 18 to 21 (1982?).
• How to ensure that Eskimo Joes would survive the
  new law?
• Option 1 convert the beer bar into a
  full-service restaurant.
• Option 2 continue operating as a beer bar and
  offset declining beer sales with an increase in
  apparel sales.
• Option 3 close Eskimo Joes bar and refocus on
  building the growing apparel business.

3
Retailing

• purchase for personal use
• Wheel of Retailing
• entry at the low end
• gradual evolution
• augmentation costs
• moves into high end
• leaving room for new formats

• Retail Life Cycle
• Retailers are born, grow and mature, and
  eventually die or become obsolete.
• Introduction
• Growth
• Maturity
• Decline

4
Retailing in the Future

• Significant trends
• demographics
• convenience for working consumers
• longer hours
• easier access
• specific age segments
• ethnic diversity

• Technology
• e-tailing
• POS systems
• cart-top computer
• RIFD tags
• preference cards
• Intellifit systems

5
Retailing in the Future

• Globalization
• U.S. firms going international
• adaptations required
• Wal-Mart unsuccessful in both Korea and Germany
• firms from other countries competing here

6
Retail Classification

• Merchandise Mix
• Level of Service
• self-service
• limited-service
• full-service
• Merchandise selection
• breadth
• depth

7
Retail Classification

• Kinds (forms)
• convenience
• supermarkets
• specialty stores
• discount stores
• general merchandise
• off-price
• warehouse clubs
• factory outlet store

• department stores
• hypermarkets

8
Nonstore Retailing

• Direct selling
• door-to-door sales
• declining here, increasing elsewhere
• parties and networks
• parties
• Tupperware, Avon, Pampered Chef, etc.
• network marketing
• Amway, Creative Memories, etc.

• Automatic vending
• coin or credit card operated machine that
  dispenses product
• can be almost anything (including beer)

9
Nonstore Retailing

• limitations
• security
• potential for fraud
• postage/handling
• sight/sound only senses involved
• color on monitors
• delay in receipt
• B2Cs effect
• destination retail

• B2C e-commerce
• benefits
• Reaching new audiences
• 24/7 shopping
• product choices
• information available

10
Retailing As Theatre

• Mall of America
• Store image
• how the TM perceives the store
• Atmospherics
• use of color, lighting, scents, furnishings, etc.
  to create a feeling

• Store design
• store layout
• grid
• free-flow
• fixture type and density
• music
• color and lighting

11
Retailing As Theatre

• Store personnel (the actors)
• quality often rated low
• greeters (from Japan)
• Nordstroms
• Pricing

• Store Location
• central business district
• shopping center
• owned and operated as a single entity
• free-standing
• non-traditional

12
Retailing As Theatre

• Site selection
• trade area
• area demographics
• saturated trade area
• under-stored area
• over-stored area