BSAD 432 Introduction to Retailing

Agenda  Course details  Introduce some core retail concepts and trends using an illustrative case.  Discussion will incorporate: Special Characteristics of Retailing The Retail Concept Total Retail Experience Retail Positioning Strategic Options in Economic Downturn

Identify the 10 largest Canadian retailers according to “Leaving Home: Global Powers of Retailing 2011” assigned reading. 1. Loblaws 2. Couche Tard 3. Empire 4. Metro 5. Shoppers 6. Canadian Tire 7. Katz 8. Jimmy Pattison Group 9. Liquor Control Board of Ontario 10. Rona What is the Q ratio? (pG30) The ratio of a publicly traded company’s market capitalization to the value of its tangible assets. If the value is greater than 1, it means that the market believes part of the company’s value comes from its intangible assets. What is the Q ratio of Canadian retailers? Compare Q ratios of Top 30 (pG31) to profit margins of fastest growing retailers (p. G28-9).

© 2006 Pearson Education Canada Inc. 1.5 Special Characteristics Affecting Retailers Small Average Sale Impulse Purchases Popularity of Stores Retailer Strategy

Figure 1.10 Applying the Retail Concept Customer Orientation Coordinated Effort Value driven Goal Orientation Retailing Concept Retail Strategy

Overall Strategy Components The Retailing Strategy Mix is a combination of:  Product  Price  Location  Communication  Operations Management  Need to balance with uncontrollable environmental and marketplace factors Controllable Factors

Figure 3.7 Selected Retail Positioning Strategies

The Positioning Approach of High-End Jewellery Stores Case #4, p. 78

The Positioning Approach of High-End Jewellery Stores 1. Positioning Chart – Jewellers 2. Blurred positioning? 3. Pros and cons of Tiffany’s low price strategy 4. How would you expect the total retail experience to differ in Wal-Mart, department stores and high-end retailers?

Total Retail Experience  The elements in a retail offering that encourage or inhibit consumers during their contact with a retailer.  Includes both controllable and uncontrollable factors  Think again about the reasons you gave when choosing your favourite retailer last day…

“It is critical … for a retailer to choose his or her spots…to accept the notion that you can’t be everything to everyone.” - Kevin Coupe, Morningnewsbeat.com

1.13 Strategic Options in Economic Downturn  Increase firm’s cash position  Rethink existing store formats  Keep stores open longer hours  Begin holiday season earlier  Re-introduce layaway plans  Berman and Evans, Retail Management: A strategic Approach,11ed., p

Takeaways  Retail strategy is influenced by the nature of retail’s special characteristics  Retail strategy should reflect the retail concept  The retail strategy mix consists of product, price, location, communication, and operations management factors  The combination of retail strategy mix creates a perception or ‘position’ of the retailer in consumers’ minds