1. 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13Retailing Prepared by Deborah Baker Texas Christian University 13

2. 2 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Learning Objectives 1.Discuss the importance of retailing in the U.S. economy 2.Explain the dimensions by which retailers can be classified 3. Describe the major types of retail operations

3. 3 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Learning Objectives (continued) 4.Discuss nonstore retailing techniques 5.Define franchising and describe its two basic forms 6.List the major tasks involved in developing a retail marketing strategy 7.Describe new developments in retailing

4. 4 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Ten Largest U.S. Retailers 1 2004 rankCompanyRevenue# of stores 1Wal-Mart$258.6 billion4906 2Home Depot$64.8 billion1707 3Kroger$53.7 billion3774 4Target$48.1 billion1553 5Costco$42.5 billion420 6Sears$41.4 billion1970 7Safeway$35.6 billion1817 8Albertson’s$35.4 billion2305 9Walgreen$32.5 billion4227 10Lowe’s$30.8 billion952

5. 5 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Classification of Retail Operations Ownership Level of Service Product Assortment Price 2

6. 6 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Classification of Ownership Independent Retailers Independent Retailers Chain Stores Franchises 2

7. 7 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Level of Service Full Service Self Service Discount stores Exclusive stores Factory outlets Warehouse clubs Factory outlets Warehouse clubs 2

8. 8 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Major Types of Retail Operations Department Stores Specialty Stores Supermarkets Drugstores Convenience Stores Discount Stores Restaurants Online http://www.walgreens.com 3

9. 9 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Categories of Discount Stores Full-Line Discounters Specialty Discount Stores Warehouse Clubs Off-Price Discount Retailers 3

10. 10 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Nonstore Retailing Automatic Vending Direct Retailing Direct Marketing Electronic Retailing 4

11. 11 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Basic Forms of Franchising Business Format Franchising Product and Trade Name Franchising Product and Trade Name Franchising Online http://www.curves.com 5

12. 12 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Retailing Strategy Step 2: Define the Retailing Mix Step 2: Define the Retailing Mix Step 1: Segment the Market Step 1: Segment the Market Designing a RetailingStrategy RetailingStrategy 6

13. 13 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Retail Promotion Strategy Advertising Public Relations Publicity Sales Promotion 6

14. 14 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Location Decisions Freestanding Store Shopping Center Tenant Mall Tenant Online http://www.mallofamerica.com 6

15. 15 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13Price Quality Image Quality Image High Price Low Price Good Value 6

16. 16 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Presentation of the Retail Store Employee type and density Merchandise type and density Fixture type and density Sound Odors Visual factors 6

17. 17 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13 Personnel and Customer Service Suggestion Selling Trading Up Two Common Selling Techniques Two Common Selling Techniques 6