1. Copyright © Houghton Mifflin Company. All rights reserved. 15–1 Retailing Transactions in which ultimate consumers are the buyers Retailers –Organizations that purchase products for the purpose of reselling them to ultimate consumers Retailers add value—shopping convenience, services, and purchasing assistance to customers Retailers create utility—time, place, possession, and form

2. Copyright © Houghton Mifflin Company. All rights reserved. 15–2 Table 15.1

3. Copyright © Houghton Mifflin Company. All rights reserved. 15–3 General-Merchandise Retailers Offer a variety of product lines Department Stores –Large retail organizations characterized by wide product mixes and organized into separate departments to facilitate marketing efforts and internal management Discount Stores –Self-service, general merchandise stores offering brand name and private brand products at low prices Supermarkets –Large, self-service stores that carry a complete line of food products, along with some nonfood products

4. Copyright © Houghton Mifflin Company. All rights reserved. 15–4 General-Merchandise Retailers (cont’d) Superstores –Giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer products Hypermarkets –Stores that combine supermarket and discount shopping in one location Warehouse Clubs –Large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing

5. Copyright © Houghton Mifflin Company. All rights reserved. 15–5 Important Terms Retailing –Transactions in which ultimate consumers are the buyers Retailers –Organizations that purchase products for the purpose of reselling them to ultimate consumers General-Merchandise Retailers –A retail establishment that offers a variety of product lines that are stocked in depth

6. Copyright © Houghton Mifflin Company. All rights reserved. 15–6 Important Terms Department stores –Large retail organizations characterized by wide product mixes and organized into separate departments to facilitate marketing efforts and internal management Discount Stores –Self-service, general merchandise stores offering brand name and private brand products at low prices Supermarkets –Large, self-service stores that carry a complete line of food products, along with some nonfood products

7. Copyright © Houghton Mifflin Company. All rights reserved. 15–7 Important Terms Superstores –Giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer products Hypermarkets –Stores that combine supermarket and discount shopping in one location Warehouse Clubs –Large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing

8. Copyright © Houghton Mifflin Company. All rights reserved. 15–8 General-Merchandise Retailers (cont’d) Warehouse Showrooms –Retail facilities in large, low-cost buildings with large, on-premise inventories and minimal services Catalog Showrooms –A form of warehouse showroom where consumers can shop from a catalog and products are stored out of buyers’ reach

9. Copyright © Houghton Mifflin Company. All rights reserved. 15–9 Specialty Retailers Traditional Specialty Retailers –Carry a narrow product mix with deep product lines (e.g., pet supplies) –Also called “limited-line” and “single-line” retailers –Have higher costs and higher margins –Provide more product selection (first-line brands), product expertise, and high levels of personal service

10. Copyright © Houghton Mifflin Company. All rights reserved. 15–10 Strategic Issues in Retailing Retail Store Location –Factors affecting location Intended target market Kinds of products Suitability of site for customer access Characteristics of existing retail operations Types of Locations –Free-standing structures –Shopping malls and centers –Traditional business districts

11. Copyright © Houghton Mifflin Company. All rights reserved. 15–11 Types of Traditional Shopping Centers Neighborhood Shopping Centers –Usually consist of several small convenience and specialty stores Community Shopping Centers –Include one or more department stores (anchors), some specialty stores, and convenience stores Regional Shopping Centers –Have the largest department stores, the widest product mix, and the deepest product lines of all shopping centers

12. Copyright © Houghton Mifflin Company. All rights reserved. 15–12 Types of Nontraditional Shopping Centers Factory Outlet Malls –Shopping centers that feature discount and factory outlet stores carrying traditional brand name products Miniwarehouse Mall –Loosely planned centers that lease space to retailers running retail stores out of warehouse bays Nonanchored Malls –Do not have traditional department store anchors; instead combine off-price and category killer stores in a “power center” format

13. Copyright © Houghton Mifflin Company. All rights reserved. 15–13 Important Terms Warehouse Showrooms –Retail facilities in large. low-cost buildings with large on-premise inventories and minimal services Catalog Showrooms –A form of warehouse showroom where consumers can shop from a catalog and products are stored out of buyers’ reach Traditional Specialty Retailers –Carry a narrow product mix with deep product lines

14. Copyright © Houghton Mifflin Company. All rights reserved. 15–14 Important Terms Neighborhood Shopping Centers –Usually consist of several small convenience and specialty stores Community Shopping Centers –Include one or more department stores (anchors), some specialty stores, and convenience stores Regional Shopping Centers –Have the largest department stores, the widest product mix, and the deepest product lines of all shopping centers

15. Copyright © Houghton Mifflin Company. All rights reserved. 15–15 Strategic Issues in Retailing (cont’d) The Wheel of Retailing –A hypothesis holding that new retailers usually enter the market as low-status, low- margin, low-price operators but eventually evolve into high-cost, high price merchants. Maybry’s at the Mall

16. Copyright © Houghton Mifflin Company. All rights reserved. 15–16 The Wheel of Retailing Source: Adapted from Robert F. Hartley, Retailing: Challenge and Opportunity, 3rd ed., p. 42. Copyright © 1984 by Houghton Mifflin Company. Reprinted by permission of the author. FIGURE 15.1