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Types of Retailers

CHAPTER 02. Types of Retailers. General Trends in Retailing. New types of retailers Globalization Growth in services retailing Growth in omnishopping by traditional retailers Increase use of technology to reduce cost; Increase value delivered. NAICS Codes for Retailers.

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Types of Retailers

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  1. CHAPTER 02 Types of Retailers

  2. General Trends in Retailing • New types of retailers • Globalization • Growth in services retailing • Growth in omnishopping by traditional retailers • Increase use of technology to reduce cost; Increase value delivered

  3. NAICS Codes for Retailers

  4. Types of Retailers • Retailers Use Different Retail Mixes -merchandise: variety (breadth) / assortment (depth) -services -store design, visual merchandising -location -pricing

  5. Variety (breadth of merchandise): wide vs. narrow - The number of merchandise categories Assortment (depth of merchandise): deep vs. shallow -the number of items in a category (SKUs) Merchandise Offering

  6. Services Offered • Retailers differ in the services they offer customers • Wheelworks offers assistance in selecting the appropriate bicycle as well as bicycle repairs. • Wal-Mart, however, doesn’t provide any additional services.

  7. Prices and the cost of offering breath and depth of merchandise and services • Stocking a deep and broad assortment (like Wheelworks) is costly for retailers. Many SKUs Because the retailer must have backup stock for each SKU in addition to holding the inventory Inventory Investment Cost

  8. Illustration of Variety and Assortment

  9. Food Retailers • Channel preference for food shopping channel where grocery purchasers do most of their food shopping • Supermarkets • Supercenters • Warehouse Clubs • Convenience Stores

  10. Trends in Supermarket Retailing • Competition • Supercenters • Warehouse Clubs • Convenience Stores • Extreme Price Retailers • Convenience Stores • Drug Stores • Changing Consumption Patterns Distribution Costs Prices Time Pressure Eating Out More Meal Solutions

  11. Characteristics of Food Retailers

  12. Characteristics of General Merchandise Retailers

  13. Characteristics of General Merchandise Retailers

  14. Issues in Department Store Retailing • Competition • Discount stores on price • Specialty stores on service, depth of assortment • Lower cost by reducing service • Centralized cash wraps • More sales • Customers wait for sale • Focus on apparel and soft home • Develop private labels and exclusive brands

  15. Three Tiers of Department Stores • First Tier: Upscale, high fashion chains with exclusive designer merchandise and excellent customer service • Nordstrom, Neiman Marcus, Saks • Second Tier: Retailers sell more modestly priced merchandise with less customer service • Macy’s • Third Tier: Value oriented caters to more price conscious customer • JCPenney, Sears, Kohl’s Rob Melnychuk/Getty Images

  16. Specialty Store Retailers McGraw-Hill Companies, Inc./Andrew Resek, Photographer What challenges do specialty store retailers face?

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