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 firm’s 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