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CHAPTER 12 RETAILING STRATEGY. DEFINITION OF RETAILER Sells majority of sales to consumers.

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Presentation on theme: "CHAPTER 12 RETAILING STRATEGY. DEFINITION OF RETAILER Sells majority of sales to consumers."— Presentation transcript:

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 PeriodInnovation Department Store 1880’s Urban Growth Supermarket 1930’s Depression Discounter 1950’s Affluence Specialty Market 1980’s Breakup of Markets

6 DEPARTMENT STORES Broad product lines Lots of services High markups

7 DEPARTMENT STORE EXAMPLES Neiman Marcus Dillard’s Nordstrom

8 SUPERMARKETS Primarily food products Expanded into non-food products Extensive self-service

9 HOUSTON SUPERMARKETS Kroger HEB Whole Foods Trader Joe’s

10 DISCOUNT STORES Compete on price Volume-oriented Limited assortment sizes

11 DISCOUNT STORE EXAMPLES Walmart Costco Target Sam’s

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 Macy’s

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 Men’s Wearhouse Hot Mama Buc-ee’s

24 RETAILING TRENDS Small Retailers Large Retailers Retail Store Orders Internet Retail Orders Internet Retail Orders Your Home Delivery Buyers Sellers (More(LessControl)

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