Chapter 13 Retailers

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey The Retailing Picture Retailing is the link between manufacturer and consumer. Enormous changes have recently occurred in retailing methods, management and ownership. Most top retail stores began in manufacturing and marketing centers: –Paris –London –Tokyo –Rome –Milan –New York

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey The Retailing Picture Flagship stores remain in cities with branch stores added in suburbs, following the post war exodus to suburbia spurred by the development of highways. Malls, enclosed climate controlled establishments managed as a single property are dominate form. These shopping centers take many forms: –Regional centers and fashion specialty centers –Power, or value centers –Outlet centers –Recreational or theme centers –Life style centers, urban malls and transportation centers

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey The Retailing Picture During the last quarter of the 20 th century, many retailers, pushed by competition, debt, inventory control and poor management, closed. In spite of this market contraction, the United States boasts 19 square feet of retail selling per person in the country now, compared to just 7 feet per person in 1970.

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey Retailing Strategies Today Today’s retailer responds to the increased competition and stagnant market by mirroring trends in consumer lifestyles. These strategies include: –Unique merchandise –Value directed retailing –Service oriented retailing –Entertainment –Global expansion

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey Store-Based Retailers Over the past hundred years a variety of retail operations have evolved, with distinction blurring between categories of merchants. Some of the most important categories are: –Specialty stores including: Single line Single brand, or private label Limited line Multiple line –Department stores

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey Store-Based Retailers Categories continued: –Mass merchants including: Discounters Off price retailers Outlet stores Warehouse clubs –Promotional stores –Consignment stores

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey Retail Organizations Retailing functions are generally divided into six areas of responsibility: –Merchandising –Retail operations –Marketing –Finance –Real estate or store planning –Human resources Merchandising, operations, and marketing are responsible for driving sales.

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey Retail Organizations Small stores typically have one person, often the owner, handling many. responsibilities while large stores usually enjoy specialization of task. Lease departments handle areas where special sales training is necessary: –Furs –Shoes –Fine jewelry

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey Type of Ownership Three types of ownership exist: –Sole proprietorships, where a single person owns the operation and is responsible for all decisions. They represent the vast majority of independent fashion stores. –Partnerships, where two or more persons own the business. Most often each partner has a particular specialty, and as the store grows, tasks specialize. –Corporations, where stockholders finance the corporation and elect a board of directors. The board selects chairmen and officers to run the company. These officers set policy and ensure proper execution of these strategies. –Nearly all chains are corporations.

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey Nonstore Retail Originally developed for consumer convenience, it has evolved into many formats critical for success in today’s retail environment. Mail order catalogues offer merchandise for shopping at home. Production and distribution are critical since quick response to fashion trends is difficult.

Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey Nonstore Retail E-commerce is basically catalog via the Internet with the additional bonus of quicker ordering and fulfillment and better viewing capacity. Television home shopping includes shopping networks and infomercials transmitted via the television. All of these effectively allow shoppers to remain at home and shop at their convenience.