Lesson 1 - Introduction to Retailing and Types of Retailers

(1)

(2)

NAME THAT

RETAILER

(3)

NAME THAT

RETAILER

3.

4.

(4)

NAME THAT

RETAILER

(5)

NAME THAT

RETAILER

7.

8.

(6)

NAME THAT

RETAILER

(7)

WHAT IS

RETAIL?

(8)

(9)

A SET OF BUSINESS ACTIVITIES

THAT ADDS VALUE TO THE

PRODUCTS AND SERVICES SOLD TO

CONSUMERS FOR THEIR PERSONAL

OR FAMILY USE.

(10)

(11)

* NOT JUST PRODUCTS BUT

ALSO SERVICES

(12)

(13)

* NOT ALL RETAILING IS

DONE IN STORE

(14)

(15)

SUPPLY CHAIN

(16)

(17)

SUPPLY CHAIN

(18)

(19)

SUPPLY CHAIN

(20)

SUPPLY CHAIN

Buying, taking title, storing

and handling in large

quantities for reselling

(21)

SUPPLY CHAIN

(22)

(23)

SUPPLY CHAIN

(24)

(25)

VERTICAL INTEGRA

TION

firm p

erfo

rms

mo

re t

han

on

e se

t of

acti

vitie

s in

the

ch

ann

el

Sunday, November 17, 13

(26)

(27)

BACKWARD INTEGRA

TION

retailer performs

_some

distribution and ma

nufacturing

activities

(28)

(29)

ma

nu

fact

ure

rs u

nd

ert

ak

e r

eta

ilin

g

act

ivit

ies

FORWARD INTEGRA

TION

(30)

(31)

CONSIDER THIS:

A V-neck shirt at

TOPMAN costs

Php 100 to manufacturer

sells at a price of Php 595

Retailers add significantly to

the prices consumers face

Why not buy directly from the

manufacturer?

(32)

(33)

HOW DO RETAILERS ADD VALUE?

Buy in quantities customers want

BREAKING BULK

(34)

HOW DO RETAILERS ADD VALUE?

Buy in quantities customers want

BREAKING BULK

Buy it at a convenient place when you want it

(35)

HOW DO RETAILERS ADD VALUE?

Buy in quantities customers want

BREAKING BULK

Buy it at a convenient place when you want it

hold inventory

Buy other products at the same time

provide assortment

(36)

HOW DO RETAILERS ADD VALUE?

Buy in quantities customers want

BREAKING BULK

Buy it at a convenient place when you want it

hold inventory

Buy other products at the same time

provide assortment

See it before you buy, get credit, layaway

(37)

HOW DO RETAILERS ADD VALUE?

Buy in quantities customers want

BREAKING BULK

Buy it at a convenient place when you want it

hold inventory

Buy other products at the same time

provide assortment

See it before you buy, get credit, layaway

offer services

increase value

(38)

The value of the product and service increases

as the retailer performs functions

(39)

The value of the product and service increases

as the retailer performs functions

Bicycle can be bought

on credit or put on

layaway

Bicycle is featured on

floor display

Bicycle is offered in

convenient locations in

quantities of one

Bicycle is developed in

several styles

Bicycle is developed at

manufacturer

(40)

(41)

(42)

(43)

SOCIAL & ECONOMIC

BENEFITS OF RET

AILING

(44)

(45)

`

Retail Sales

“Total s

ales to b

e gener

ated by t

he loca

l retail

sector mi

ght rea

ch P1.5

trillion t

his year

”

Freder

ick Go

(46)

`

Retail Sales

Accoun

ts for ro

ughly 1

5% of t

he coun

try’s

total Gr

oss Nat

ional Pr

oduct (

(47)

`

Retail Sales

(48)

(49)

EMPLOYMENT

employs

some 5

.25 Mill

ion peo

ple

(50)

EMPLOYMENT

18% of

the cou

ntry’s w

ork force

(2

of ever

y 10 wo

rkers is

employ

ed

in the r

etail ind

(51)

EMPLOYMENT

(52)

(53)

voluntary actions taken by company to address

ethical, social and environmental impacts of its

business operation and of its stakeholders.

SOCIAL RESPONSIBILITY

(54)

voluntary actions taken by company to address

ethical, social and environmental impacts of its

business operation and of its stakeholders.

(55)

voluntary actions taken by company to address

ethical, social and environmental impacts of its

business operation and of its stakeholders.

SOCIAL RESPONSIBILITY

(56)

(57)

success in

retail

(58)

(59)

(60)

(61)

CAREERS in

retail

(62)

(63)

(64)

Store mana

(65)

Store mana

gement

ability t

o lead a

nd moti

vate emp

loyees

(66)

Store mana

(67)

Store mana

gement

sensitive

to cust

omers’ n

eeds by ma

king su

re that

mercha

ndise is

availab

le and n

eatly di

splayed

(68)

Store mana

(69)

Store mana

gement

away fr

om hea

d office

, long w

orking h

ours an

d days

(70)

Store mana

(71)

Store mana

gement

store, a

rea, reg

ional

(72)

Store mana

(73)

(74)

merchandise mana

(75)

merchandise mana

gement

strong a

nalytica

l capab

ilities, a

n ability t

o predi

ct what

mercha

ndise w

ill appe

al to

their ta

rget ma

rkets, a

nd a sk

ill for ne

gotiatin

g with ve

ndors a

s well a

s store

manage

ment to

get thin

gs done

.

(76)

merchandise mana

(77)

merchandise mana

gement

Buyer -

invest i

n merch

andise,

monito

r sales,

order mo

re or

get rid

(78)

merchandise mana

(79)

merchandise mana

gement

Planne

r - how

many s

tyles, c

olors, s

izes, a

nd indi

vidual

items i

n each

store -

works

closely

with b

uyer

(80)

merchandise mana

(81)

(82)

MIS

_operations

promotions/Advertising

FINANCE/ACCOUNTING

real estate

store design

HR

(83)

RETAILERS

(84)

RETAILERS

(85)

(86)

(87)

VARIETY

vs.

ASSORTMENT

The number of

merchandise

categories

(88)

VARIETY

vs.

ASSORTMENT

The number of

merchandise

categories

The number of different

items in a merchandise

VARIETY

vs.

ASSORTMENT

The number of

merchandise

categories

The number of different

items in a merchandise

BREADTH

_DEPTH

(90)

VARIETY

vs.

ASSORTMENT

The number of

merchandise

categories

The number of different

items in a merchandise

BREADTH

_DEPTH

(91)

(92)

FOOD

general

merchandise

(93)

FOOD

Mom and Pop Stores

Supermarkets

Convenience Stores

Big Box Retailers

general

merchandise

(94)

FOOD

Mom and Pop Stores

Supermarkets

Convenience Stores

Big Box Retailers

Department Stores

Specialty Stores

Discount Stores

Category Specialists

Off-Price Retailers

Warehouse Clubs

general

merchandise

(95)

(96)

supermarkets

Conven

tional – s

elf servi

ce food

store o

ffering

grocerie

s, meat

, and pr

oduct w

ith limit

ed

sales of

non-fo

od items

(97)

supermarkets

(98)

supermarkets

_{SURVIVAL P}

(99)

supermarkets

_{SURVIVAL P}

ACK

Emphas

ize on f

resh me

rchandi

se

- “pow

er perime

ter” (ou

ter wall

)

- food

items

(100)

supermarkets

_{SURVIVAL P}

(101)

supermarkets

_{SURVIVAL P}

ACK

Target h

ealth co

nscious

and eth

nic cons

umers

(102)

supermarkets

_{SURVIVAL P}

(103)

supermarkets

_{SURVIVAL P}

ACK

Provide

better i

n store

experie

nce

(104)

supermarkets

_{SURVIVAL P}

(105)

supermarkets

_{SURVIVAL P}

ACK

Offer mo

re priva

te label

(106)

supermarkets

_{SURVIVAL P}

(107)

(108)

(109)

SUPERCENTERS

Superce

nters – co

mbine s

uperma

rket wit

h a

full line d

iscount

store.

(110)

SUPERCENTERS

Hyperma

rkets

large co

mbinati

on food

and

general

mercha

ndise.

- origin

ated fro

(111)

SUPERCENTERS

(112)

(113)

CONVENIENCE STORES

limited v

ariety a

nd asso

rtment o

f merch

andise

at a con

venient

locatio

n

(114)

(115)

CONVENIENCE STORES

They now c

_{hallenge co}

mpetition

(116)

CONVENIENCE STORES

They now c

_{hallenge co}

mpetition

Tailor to

market

and ea

sier to s

(117)

CONVENIENCE STORES

They now c

_{hallenge co}

mpetition

(118)

CONVENIENCE STORES

They now c

_{hallenge co}

mpetition

Offer fre

sh food

and fas

t casua

(119)

CONVENIENCE STORES

They now c

_{hallenge co}

mpetition

(120)

CONVENIENCE STORES

They now c

_{hallenge co}

mpetition

Offer fin

ancial s

(121)

CONVENIENCE STORES

They now c

_{hallenge co}

mpetition

(122)

CONVENIENCE STORES

They now c

_{hallenge co}

mpetition

Smaller

store c

loser to

consume

rs - like

airport

s

(123)

CONVENIENCE STORES

They now c

_{hallenge co}

mpetition

(124)

(125)

general

Merchandise

(126)

(127)

department STORES

retailer

s that ca

rry a br

oad var

iety and

deep

assortme

nt, offer

custome

r service

and or

ganize

their sto

res into

distinct

depart

ment fo

r displa

ying

mercha

ndise

soft (clo

thes, be

ddings,

etc) an

d hard g

oods

(furnitu

re, app

liances,

etc)

(128)

(129)

• =

THREE TIERS OF DEPARTMENT STORES

First Tier: upscale, high fashion chains with

exclusive designer merchandise and excellent

customer service.

(130)

• =

THREE TIERS OF DEPARTMENT STORES

Second Tier: Retailers sell more modestly priced

merchandise with less customer service

(131)

• =

THREE TIERS OF DEPARTMENT STORES

Third Tier: Value oriented caters to more price

conscious customer

(132)

• =

(133)

(134)

(135)

ISSUES

Compet

ition - D

iscount

Stores

on price

and Spe

cialty St

ores on

Service

, Depth

of Asso

rtment

(136)

(137)

ISSUES

Lower C

ost by R

educing

Service

s (?)

(138)

(139)

ISSUES

More Sa

les (?)

we wai

t for sa

le

(140)

(141)

ISSUES

Develop

Private

Labels

and Ex

clusive B

rands

(142)

(143)

ISSUES

Technol

ogy - mu

ltichann

el

(144)

(145)

(146)

SPECIALTY STORE

concentra

_{te on limi}

ted numb

er of comp

limentary

merchand

ise catego

_{ries and p}

rovide a h

igh level o

(147)

SPECIALTY STORE

“fast fashio

_{n” - 2 to 3}

times a w

eek rather

_{than mo}

nthly

(148)

(149)

(150)

DRUGSTORES

specialty s

tores tha

t concent

rate on h

ealth and

personal g

rooming

(151)

DRUGSTORES

Stand Alo

ne Sites w

ith Drive T

hru Windo

ws

(152)

DRUGSTORES

offering mo

re freque

nt purcha

se food it

(153)

DRUGSTORES

Improved

systems p

rovide pe

rsonalize

d

service in

the phar

macy

(154)

(155)

(156)

CATEGOR

Y Specialist/killers

deep bu

t narrow

assort

ment of

(157)

(158)

EXTREME VALUE

Small, full-l

_{ine disco}

unt stores

that offer a

_limited

merchand

ise assortme

nts at ve

(159)

EXTREME VALUE

Focuses o

n Lower In

come Cons

_umers

Names mo

stly imply g

ood value a

t price poin

_ts

(160)

(161)

(162)

off price

Close-out

retailers.

Inconsist

ent assor

tment

of brand n

ame merc

handise a

t low price

s

(163)

off price

Close out

s – end o

f season me

rchandise

Irregulars

– odd size

s or unpo

pular colo

rs,

factory de

fect

(164)

off price

one-fifth t

o one-fou

rth of the

original p

(165)

off price

hunt for h

idden tre

asures

(166)

off price

Outlet sto

res - own

ed by reta

ilers thems

(167)

off price

(168)

(169)

Home impro

vement centers

(170)

(171)

SERVICE

retailers

(172)

(173)

Graying pop

ulation - he

althcare

(174)

(175)

younger - h

ealth and fi

tness

(176)

(177)

working parents - conve

_nience

(178)

(179)

(180)

(181)

differences between services and

merchandise retailers

(182)

differences between services and

merchandise retailers

cannot see or touch - difficult to evaluate - use cues

intangibility

(183)

differences between services and

merchandise retailers

(184)

differences between services and

merchandise retailers

. . . other customers are present

. . . no second chance

simultaneous consumption and

production

(185)

differences between services and

merchandise retailers

(186)

differences between services and

merchandise retailers

. . . cannot be saved, stored, or resold

. . . match supply and demand - promo

perishability

(187)

differences between services and

merchandise retailers

(188)

differences between services and

merchandise retailers

no two services are the same

inconsistency

(189)

differences between services and

merchandise retailers

(190)

(191)

types of

ownership

(192)

(193)

independent

, single-store

establishment

owner ma

nager - g

reater co

ntrol, res

pond

quickly

(194)

independent

, single-store

establishment

limited to

owner’s ca

(195)

independent

, single-store

establishment

(196)

(197)

corporate retail chain

company t

hat opera

tes multip

le retail u

nits unde

r common

ownership

and usua

lly has ce

ntralized d

ecision ma

king for

defining a

nd impleme

nting its s

trategy

(198)

(199)

(200)