Retailing Chapter 15

Retailing Definition Definition Facts Facts Employs 25 million people (11.6% of US employment) Employs 25 million people (11.6% of US employment) $4 trillion annually (40% of GDP) $4 trillion annually (40% of GDP) Types of Utility Types of Utility Time Time Place Place Possession Possession Form Form

Retailing Classifications Form of Ownership Form of Ownership Independent Retailer Independent Retailer Corporate Chain Corporate Chain Franchises Franchises

Retailing Classifications Level of Service Level of Service Self-service Self-service New checkout lanes New checkout lanes Limited Service Limited Service Wal-mart Wal-mart Full-service Full-service Nordstrom Nordstrom Merchandise Line Merchandise Line Depth of Line Limited-line stores Single-line stores Breadth of Line General merchandise stores Scrambled Merchandising Hypermarket Intertype competition

Other Retail Classifications Department stores Department stores Buyers Buyers Specialty stores Specialty stores Supermarkets Supermarkets Drugstores Drugstores Convenience stores Convenience stores Discount stores Discount stores Supercenters Supercenters Category killers Category killers Source:

Nonstore Retailing Automatic vending Automatic vending Direct retailing Direct retailing Direct marketing Direct marketing Telemarketing Direct Mail Catalogs and mail order Electronic retailing Electronic retailing Online retailing Television Home Shopping Source:

Retail Positioning Matrix Wal-martBloomingdale’s Just for Feet Tiffany’s Value Added LowHigh Product Breadth Broad Narrow

Retailing Mix Pricing Pricing Markdown Markdown Everyday Low Pricing Everyday Low Pricing Everyday Fair Pricing Everyday Fair Pricing Shrinkage Shrinkage Off-price Retailing Off-price Retailing Warehouse club Warehouse club Outlet store Outlet store Single-price Single-price

Retailing Mix Store Location Store Location Central business district Central business district Regional shopping centers Regional shopping centers Community shopping center Community shopping center Strip location Strip location Power center Power center Source:

Retailing Mix Atmospherics Atmospherics Employee type and density Employee type and density Merchandise type and density Merchandise type and density Fixture type and density Fixture type and density Sound Sound Odors Odors Visuals Visuals Source:

Nature of Retailing The Wheel of Retailing The Wheel of Retailing Retail Life Cycle Retail Life Cycle

The Future of Retailing Multichannel Retailing Multichannel Retailing Smart Cards Smart Cards M-commerce M-commerce Changing preferences Changing preferences Precision shopping Cobranding Source: