RETAILING AND WHOLESALING

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CHAPTER
RETAILING AND WHOLESALING
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THE VALUE OF RETAILING
Retailing
Retailing includes all activities involved in
Selling and providing goods and services to
ultimate consumers for personal, or household use.
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CLASSIFYING RETAIL OUTLETS
Retailers manipulate their 4 Ps to get the best
position in the marketplace in other words, to
create a competitive advantage
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CLASSIFICATION BY OWNERSHIP
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BASIC FORMS OF FRANCHISING
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CLASSIFICATION BY LEVEL OF SERVICE
Self Service
Full Service
Discount stores
Factory outlets Warehouse clubs
Exclusive stores
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CLASSIFICATION BY PRODUCT OFFERING
The mix of products offered to the consumer by
the retailer also called the product
assortment Deep narrow-like Starbucks Or Shallo
w broad like Walmart
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CLASSIFICATION BY PRODUCT OFFERING

• Depth of Product Line

• Specialty Outlets

• Category Killers

• Breadth of Product Line

• General Merchandise Stores

• Scrambled Merchandising

Why do this?
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Breadth versus depth of merchandise lines
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MAJOR TYPES OF RETAILERS BY PRODUCT OFFERING
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NON-STORE RETAILING
Major Forms ofNonstore Retailing
Automatic Vending
Direct Marketing
Electronic Retailing
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DIRECT MARKETING
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CHOOSING THE RETAIL MIX
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CHOOSING THE RETAIL MIX
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PRESENTATION (COMMUNICATION) OF THE RETAIL STORE
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PERSONNEL OF THE RETAIL STORE
How many
Factors in Personnel decisions
How knowledgeable
How helpful / invasive
Fit the image of the product
Good personal sellers
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RETAILING STRATEGY-PRICING

• How much mark-up?

• Allow for Shrinkage and discounting
• OR

• Use Everyday Low Pricing

• Benchmark or Signpost Items
• items used by consumers as an index
• of overall price level of the store
• I.e. How much do they sell T shirts for?

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RETAILING STRATEGY - LOCATION

• Central Business District

• Parasites

• Regional Shopping Centers

• Anchor Stores

• Strip Location

• Destination stores

• Power centers

• Multichannel Retailers

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FIGURE 14-5 The retail life cycle
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Scrambled Merchandising
Scrambled merchandising involves offering several
unrelated product lines in a single store.
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Retailing Mix
The retailing mix includes the activities related
to managing the store and the merchandise in the
store, which includes retail pricing, store
location, retail communication, and merchandise.
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Shrinkage
Shrinkage is the breakage and theft of
merchandise by customers and employees.
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Multichannel Retailers
Multichannel retailers utilize and integrate a
combination of traditional store formats and
nonstore formats such as catalogs, television,
and online retailing.
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Retail Life Cycle
The retail life cycle is the process of growth
and decline that retail outlets, like products,
experience, which consists of the early growth,
accelerated development, maturity, and decline
stages.
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Parasites
Parasite stores do not create their own traffic.
They make money based on their proximity to
things that will draw foot traffic. (bigger
stores, train stations, airports, office
buildings, etc.)
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Destination Stores
Stores that generate customers from larger
trading areas than their neighbors or
competitors. i.e.-Dunkin Donuts Its worth
the trip!
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Power Centers
Huge shopping strips with multiple anchors and
often a supermarket
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Anchor Stores
A large store, such as a department store or
supermarket, that is prominently located in a
shopping mall to attract customers who are then
expected to patronize the other shops in the
mall.