Lesson 1 - Introduction to Retailing and Types of Retailers

Sunday, November 17, 13

NAME THAT RETAILER 1.


2.



4.



6.



8.



10.

WHAT IS

RETAIL? Sunday, November 17, 13


A SET OF BUSINESS ACTIVITIES THAT ADDS VALUE TO THE PRODUCTS AND SERVICES SOLD TO CONSUMERS FOR THEIR PERSONAL OR FAMILY USE. Sunday, November 17, 13


* NOT JUST PRODUCTS BUT ALSO SERVICES Sunday, November 17, 13


* NOT ALL RETAILING IS DONE IN STORE Sunday, November 17, 13


SUPPLY CHAIN


SUPPLY CHAIN


SUPPLY CHAIN


SUPPLY CHAIN


SUPPLY CHAIN


SUPPLY CHAIN

Buying, taking title, storing and handling in large quantities for reselling


SUPPLY CHAIN


SUPPLY CHAIN


SUPPLY CHAIN



N O I T A

e s R G e n E o T N n I a L h el t A e C r I n o T n a R m h E V orms the c f r n i e p s e i m t i fir ctiv a Sunday, November 17, 13

f o t


BACKWAR

D INTEGR

retailer A TION perfor m s some distribu tion and manufa activitie cturing s



D R A W R O F


nu a ct f a c ivit tur ies er s un de

ma

G E INT

N O I T A R

r ta

ke r

eta

ilin g


CONSIDER THIS: A V-neck shirt at TOPMAN costs Php 100 to manufacturer sells at a price of Php 595 Retailers add significantly to the prices consumers face Why not buy directly from the manufacturer? Sunday, November 17, 13

HOW DO RETAILERS ADD VALUE?


HOW DO RETAILERS ADD VALUE? BREAKING BULK Buy in quantities customers want


HOW DO RETAILERS ADD VALUE? BREAKING BULK Buy in quantities customers want hold inventory Buy it at a convenient place when you want it


HOW DO RETAILERS ADD VALUE? BREAKING BULK Buy in quantities customers want hold inventory Buy it at a convenient place when you want it provide assortment Buy other products at the same time


HOW DO RETAILERS ADD VALUE? BREAKING BULK Buy in quantities customers want hold inventory Buy it at a convenient place when you want it provide assortment Buy other products at the same time offer services See it before you buy, get credit, layaway Sunday, November 17, 13

HOW DO RETAILERS ADD VALUE? BREAKING BULK Buy in quantities customers want hold inventory Buy it at a convenient place when you want it provide assortment Buy other products at the same time offer services See it before you buy, get credit, layaway increase value Sunday, November 17, 13

The value of the product and service increases as the retailer performs functions


The value of the product and service increases as the retailer performs functions

Bicycle can be bought on credit or put on layaway Bicycle is featured on floor display Bicycle is offered in convenient locations in quantities of one Bicycle is developed in several styles Bicycle is developed at manufacturer





C I M O N O C E & L A G I N C I L O I S A T E R F O S T I F E N E B


`


s e l ` a S l i a t e R

l i a t e r l a c o l e h t y b ” d r e a t e a y r e s i n h e t g n e o i o l b l G i r o t k t c i 5 s r . e l e 1 a d P s e r l h F a c a e r “Tot t h g i m r o t c se


s e l s ’ y ` a r t S n u o l c i e a h t t f e o R % 5 ) 1 P y l N h G ( g u t c o r u d r o o f r P s t l n a u n Acco ross Natio G l a tot


s e l ` a S l i a t e R



EM

T N E M Y O PL

. 5 e m o s s y o l emp


e l p o e p n o i l l i M 25

EM

T N E M Y O PL

2 ( e c r o f k r o w s ’ d y e r y t o n l u p o m c e e s h i t s f r o e k 18% r y 10 wor . ) y e r v t s u d of e n i l i a t e r e h t in Sunday, November 17, 13

EM


T N E M Y O PL


SOCIAL RESPONSIBILITY

voluntary actions taken by company to address ethical, social and environmental impacts of its business operation and of its stakeholders.









success in retail Sunday, November 17, 13




CAREERS in retail Sunday, November 17, 13



Store m

anagem


ent

Store m

anagem

d n a d a e l o t y t abili Sunday, November 17, 13

e t a v moti

ent

s e e y o l p m e

Store m

anagem


ent

Store m

anagem

ent

t a h t e r u s g n i k a m y d b e s y d a l e p e s n i d ’ s y r l t e a m e o n t s d u n c a o e t l b e a v l i i t i a s v n a s se i e s i d n a h c r e m Sunday, November 17, 13

Store m

anagem


ent

Store m

anagem

m o r f away Sunday, November 17, 13

f f o d a e h

s r u o h g n i k r o w g n o l , ice

ent

s y a d and

Store m

anagem


ent

Store m

anagem

e r a , store


l a n o i g e r a,

ent

Store m

anagem


ent


merch an

dise ma n


agemen t

merch an

dise ma n

agemen t

o t l a e p p a l l i w e s i d n e a r h o c t r s e s m a t l l a e h w w s t a c i s d r e r o p d n o e t v y t h i l t i i b w a g n n i a t , a i s t e o i t g i l i e b n a r p o f a l c l i l k a s c i t a y l d a n n a a , s g stron get mar ket ings done. h r t a t t e r i g o t the t n e m e g a man Sunday, November 17, 13

merch an

dise ma n


agemen t

merch an

dise ma n

r e m n i t s e v n i r e Buy d i r t ge Sunday, November 17, 13

o m , e s i d chan

agemen t

e d r o , s e l a s r nito

r o e r o m r

merch an

dise ma n


agemen t

merch an

dise ma n

agemen t

l a u d i v i d n i d n a , s e z i s , s r r e o l y o u c b , s h t e i l y w t s y l y e s n o a l c m s w k r o o h w r e e n r n o t a l s P h c a e n i s i te m Sunday, November 17, 13

merch an

dise ma n


agemen t


MIS

operations promotions/Advertising FINANCE/ACCOUNTING real estate store design HR Sunday, November 17, 13

RETAILERS Sunday, November 17, 13

TYPES OF

RETAILERS



VARIETY


vs.

ASSORTMENT

VARIETY The number of merchandise categories


vs.

ASSORTMENT



vs.

ASSORTMENT

The number of different items in a merchandise category


BREADTH


vs.

ASSORTMENT


DEPTH


BREADTH

vs.

ASSORTMENT


DEPTH

SKU Sunday, November 17, 13


FOOD general merchandise Sunday, November 17, 13

FOOD

Mom and Pop Stores Supermarkets Convenience Stores Big Box Retailers

general merchandise Sunday, November 17, 13

FOOD

Mom and Pop Stores Supermarkets Convenience Stores Big Box Retailers

Department Stores Specialty Stores Discount Stores Category Specialists Off-Price Retailers Warehouse Clubs

general merchandise Sunday, November 17, 13


m r e p su

s t e k ar

g n i r e f f o e r o t s d o o f d e e t i c i m v i l r e h s t i f l w e t s c u – d l o a r n p o i d t n n a e v , t n a o e C m , s s m e i e r t i e c d o o o gr f n o n f o s e l sa


m r e p su


s t e k ar

m r e p su


s t e k ar

SURVI VAL PA CK

m r e p su

s t e k ar

SURVI VAL PA CK

e s i d n a h c r e m ) l h l s a e w r f r n e t o u e o z ( i s ” r a e h t p e m i Em r e p r e w o p -“ s m e t i d o - fo Sunday, November 17, 13

m r e p su


s t e k ar

SURVI VAL PA CK

m r e p su h t l a e h t e Targ


s t e k ar

s u o i c s n o c

SURVI VAL PA CK

s r e m u s n o c c i n h t e and

m r e p su


s t e k ar

SURVI VAL PA CK

m r e p su e t t e b e d i v o r P


s t e k ar

SURVI VAL PA CK

e c n e i r e p x e e r o t s r in

m r e p su


s t e k ar

SURVI VAL PA CK

m r e p su r e f f O


v i r p e r o m

s t e k ar

l e b a l e t a

SURVI VAL PA CK

m r e p su


s t e k ar

SURVI VAL PA CK


S R E T e c i N v r E e s C d R e t i E m i l P t U u S rge b la


S R E a T h t i N w t E e k C r a R m E r e P p u s e SU bin

m o c – s r e . t e n r e o c t r s e t p n u Su o c s i d e n i full l


S R E T N E C R E P SU

n o i t a n i b m co

e g r a l s t e k r . a e s m i r d e n p a y h H c r e e c m n l a a r r F e m o r gen f d e t a n i g i r -o Sunday, November 17, 13

d n a food

S R E T N E C R E P SU



C N E I N E V

N O C

S E R O T S E

m f o t n e m t r o s s a d n a y t e n i r o i a t v a c d o e l t i t n e lim i n e v n o c a t a

e s i d n a h c er


C N E I N E V

N O C


S E R O T S E

C N E I N E V

N O C


S E R O T S E

They n ow c h alleng e co m

petitio

n

C N E I N E V

N O C

S E R O T S E


a t e k r a m o t r Tailo Sunday, November 17, 13

p o h s o t r e i s a nd e

petitio

n

C N E I N E V

N O C


S E R O T S E


petitio

n

C N E I N E V

N O C r e f f O Sunday, November 17, 13

S E R O T S E


f d n a d o o f h f r es

l a u s a c t as

t n a r u a t s re

petitio

n

C N E I N E V

N O C


S E R O T S E


petitio

n

C N E I N E V

N O C

Of f e


S E R O T S E


a i c n a n i f r

s e c i v r e s l

petitio

n

C N E I N E V

N O C


S E R O T S E


petitio

n

C N E I N E V

N O C

c e r o t s r e l l a Sm Sunday, November 17, 13

S E R O T S E


e m u s n o c o t r e s o l

s t r o p r i a e k i l rs

petitio

n

C N E I N E V

N O C


S E R O T S E


petitio

n


general Merchandise Sunday, November 17, 13


S E R O T S t

n e m t r a p e d

p e e d d n a e y z t i e n i r a a g v r o d a d o n r a g b e n i a c i y y v a l r r r p e a s s i c d r t e r a o m h f t o t t s n s r e u e l c i m t a r t r e f e a f r p o e , t d n t e c n i m t t r s i o d s s o t a n i s e r s o t d s o r o i g e h d t r a e h s i d d n n a a h ) c c r t e e , m s g n i d d e b , ) s c t e e h t , o s l e c c ( n t f a i o l s p p a , e r u t i n r (fu Sunday, November 17, 13

•


=

THREE TIERS OF DEPARTMENT STORES

Fir st•Tie= r: upscale, high fashion chains with exclusive designer merchandise and excellent customer service.



= • Second Tier: Retailer s sell more modestly priced

merchandise with less customer service



•

=

Third Tier: Value oriented caters to more price conscious customer



•


=


ISSUES


ISSUES

e c i r p n o s e r h o t t p S e t D n , u e o c c i s v i r D e S n n o o i t i s t e e r p o t S y C om t l a i c e p S and t n e m t r o s s A of Sunday, November 17, 13

ISSUES


ISSUES

o C r e w o L


d e R y b t s

r e S g n i c u

) ? ( s e c i v

ISSUES


ISSUES

s e l a S e r Mo


a w e w ) (?

e l a s ti for

ISSUES


ISSUES

s d n a r B e

e t a v i r P p o l e Dev


v i s u l c x E d n a s l e b La

ISSUES


ISSUES

g o l o n h c e T


l e n n a h c i t l u y-m

ISSUES



SPECIALTY

conce ntrate merc o n limite hand ise ca d num be r o tegor f com ies an plime d pr o vide a ntar y high level of se r vice Sunday, November 17, 13

STORE

“fast f

ashio


n” - 2

SPECIALTY

to 3 t imes a

week r

STORE

ather

than mont hly

SPECIALTY


STORE


DRUGSTOR e t a r t n e c n t co

a h t s e r o t s y t l a i c g n i spe m o o r g l a n o s pe r


ES

d n a h t l a e on h

DRUGSTOR

ES

s w o d n i W u r h T e

v i r D h t i w s e t i S e n o l A Stand


DRUGSTOR

g n i r e f of


t n e u q e r f e mo r

ES

s m e t i d o o f e s a h c pur

DRUGSTOR

ES

d e z i l a n o s r e pe

d i v o r p s m e t s y s d y e c v a o r m r a Imp h p e h t n i e c i v ser Sunday, November 17, 13

DRUGSTOR


ES


Y R O G E T CA

s i l a i c e Sp

w o r r a n t u b p de e


s r e l l i k t/

m f o t n e m t r o ass

e s i d n a h c er


EXTREME

Small , fullline d merc iscou hand ise as nt stor es th sor tm a t of f ents er a l at ve r y low imited price s.


VALUE

EXTREME

Focus e s Name on Low er Inc s mo stly im o me Consu ply go mer s od v a lue a t pric e poi nts


VALUE

EXTREME


VALUE


off price t n e m t r o s s a t n e t s i s s n e o c i c r n p I . w s r o l e l t i a a t e e s r i t d u n o a h c r e Close m e m a n d n a r b of Sunday, November 17, 13

off price e s i d n a h c r e m n , o s s r a o e l s o c f o r a l d u n p e o – p n s t u u r o o e s s e o z l i C s d d o – s r a l u g e r Ir t c e f e d y r o t f ac Sunday, November 17, 13

off price

e c i r p l a n i g i r o e h t f o h t r u o f e n o o t h t f i one-f Sunday, November 17, 13

off price

d d i h r o f t n u h Sunday, November 17, 13

s e r u s a e r t en

off price

e n w o s e r o t s t e Outl Sunday, November 17, 13

s e v l e s m e h t s r e l i a t e r d by

off price



Home imp

rovemen


t centers


SERVICE retailers Sunday, November 17, 13


e r a c h t l a e h n o i t a l u p o p g n i y a Gr Sunday, November 17, 13


a e h r e g youn


s s e n t i f d lth an


wor king pa re


nts - conve nience




differences between services and merchandise retailers


differences between services and merchandise retailers intangibility cannot see or touch - difficult to evaluate - use cues




differences between services and merchandise retailers simultaneous consumption and production . . . other customers are present . . . no second chance Sunday, November 17, 13



differences between services and merchandise retailers perishability . . . cannot be saved, stored, or resold . . . match supply and demand - promo





inconsistency no two services are the same Sunday, November 17, 13




types of ownership Sunday, November 17, 13


independ

ent, singl e s t o r e establish ment

e g a n a m r e own y l k c i u q Sunday, November 17, 13

d n o p s e r , l o r t n o c r e t a e r g r

independ


r e n w o o t d limite


s e i t i l i b a p a c ’s

independ




corporat

e retail c

hain

n o m m o c r e d n u s t i r n o u f l i g a n t i e k r a e m l p n i t l o i u s i m c e s d e t d a e r z e i l p a o r t t n a e h t c y s n a a h p y l l m y a g u co e s t u a r d t s n a s t i p i g h s n i r t n e m owne e l p m i d n a g n i n i f e d Sunday, November 17, 13

corporat

e retail c


hain


franchis ing


Lesson 1 - Introduction to Retailing and Types of Retailers

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