RETAILING STRATEGY

1
CHAPTER 12

• RETAILING STRATEGY

2
DEFINITION OF RETAILER

• Sells majority of sales to consumers

3
RETAILING STRATEGY

• Current Types of Retailers
• Retail Revenue Streams
• Retail Cost Efficiencies
• Concentrated Niches

4
CURRENT TYPES OF RETAILERS

• Retail stores only
• Online retailers only
• Retail stores and online retailers

5
RETAIL STORE INNOVATIONS

• Industry Period Innovation
• Department Store 1880s
  Urban Growth
• Supermarket 1930s
  Depression
• Discounter 1950s
  Affluence
• Specialty Market 1980s
  Breakup of Markets

6
DEPARTMENT STORES

• Broad product lines
• Lots of services
• High markups

7
DEPARTMENT STORE EXAMPLES

• Neiman Marcus
• Dillards
• Nordstrom

8
SUPERMARKETS

• Primarily food products
• Expanded into non-food products
• Extensive self-service

9
HOUSTON SUPERMARKETS

• Kroger
• HEB
• Whole Foods
• Trader Joes

10
DISCOUNT STORES

• Compete on price
• Volume-oriented
• Limited assortment sizes

11
DISCOUNT STORE EXAMPLES

• Walmart
• Costco
• Target
• Sams

12
SPECIALTY RETAILERS

• Focus on a specific customer market
• Stock products in depth

13
SPECIALTY RETAILERS EXAMPLES

• Best Buy
• Container Store
• Office Depot
• Ikea

14
CHANGES IN OFFICE SUPPLY RETAILING

• Neighborhood Office Supply
• Office Depot
• Amazon.com
• Time iPad

15
ONLINE RETAILERS ONLY

• Selling on-line

16
ONLINE RETAILING EXAMPLES

• Warby Parker eyewear
• Threadless
• Blinds.com
• Blue Nile
• Fanatic, Inc

17
AFFILIATES OF BLINDS.COM

• Interior design companies
• Custom home builders
• Home carpet companies

18
ONLINE JEWELRER(Blue Nile)

• Make the sale
• Collect the money
• Buy diamonds from
• wholesaler
• Drop ship from wholesaler
• to customer

19
RETAIL STORES AND ONLINE RETAILERS

• Bonobos and Nordstrom
• True Fit and Macys

20
U.S. WEB SALES IN 2012

• Amazon 61 Billion
• Wal-Mart 8 Billion

21
RETAIL REVENUE STREAMS

• Sale of product
• Credit add-on
• Service add-on
• Warranty add-on
• Trade-in

22
RETAIL COST EFFICIENCIES

• Activities Cost Savings
• Self-Service Reduces sales staff
• Supply Chains Reduces logistic costs
• Internet Selling Reduces channel costs

23
CONCENTRATED RETAIL NICHES

• Charming Charlie
• Mens Wearhouse
• Hot Mama
• Buc-ees

24
RETAILING TRENDS

• Small Retailers Large Retailers
• Retail Store Orders Internet Retail
  Orders
• Internet Retail Orders Your Home
  Delivery
• Buyers Sellers
• (More (Less
• Control) Control)