Retailing

1
Retailing

• Chapter 17

2
Retailing

• All activities involved in selling, renting, and
  providing goods and services to ultimate
  customers for personal, family, or household use.
  
• Utility
• Time
• Place
• Possession
• Form

3
Classifying Retail Outlets

• Form of Ownership
• Level of Service
• Merchandise Line

4
Form of Ownership

• Independent Retailer small retailers (florists,
  hardware stores, bakeries, etc.)
• Corporate Chain multiple outlets under common
  ownership (Target, Menards, etc.)
• Contractual System independently owned stores
  that band together to act like a chain
  (retail-sponsored, wholesale sponsored,
  franchises)

5
Level of Service

• Self-Service customers perform many functions
  and little is provided by the outlet.
• Limited Service provide some services, such as
  credit and merchandise return.
• Full-Service provide many services to the
  customer.

6
Merchandise Line

• Depth of Product Line the variety for each
  specific product.
• Breadth of Product Line the number of different
  product line available.
• Scrambled Merchandising carrying a combination
  of food and nonfood items.
• Hypermarket started in Europe
• Intertype Competition competition between
  dissimilar types of retail outlets.

7
Nonstore Retailing

• Automatic Vending
• Direct Mail and Catalogs
• Television Home Shopping
• Online Retailing
• Telemarketing
• Direct Selling

8
Retailing Strategy

• Positioning a Retail Store
• Retail Positioning Matrix

9
Retailing Mix

• Includes the goods and services, physical
  distribution, and communication tactics chosen by
  a store.
• Covers three basic areas
• Pricing
• Store Location
• Image and Atmosphere

10
Retailing Mix-Pricing

• Markup how much should be added to the cost the
  retailer paid for a product.
• Gross Margin the difference between the final
  price and the price the retailer paid.
• Markdown an adjustment to the original price.
• Everyday Low Pricing (EDLP)
• Off-Price Retailing selling brand-name
  merchandise at lower than regular prices.

11
Retailing Mix-Store Location

• Types of Locations
• Business Districts
• Shopping Centers
• Freestanding Retailers
• Nontraditional Store Locations

12
Retailing Mix-Image and Atmosphere

• Store Image how the target market perceives the
  store.
• Atmospherics the use of color, lighting,
  scents, furnishings, sound, and other design
  elements to create a desired setting.
• Store Design
• Store Layout
• Fixture type and Merchandise Density
• Music
• Color and Lighting

13
The Nature of Retailing

• The Wheel of Retailing

14
The Nature of Retailing

• The Retail Life Cycle

15
The Future of Retailing

• Multichannel Retailing
• The Impact of Technology
• Internet
• Point-of-Sale (POS) systems
• RIFD tags
• Changing Shopping Behavior
• Convenience for working consumers