Lamb, Hair, McDaniel

1. Lamb, Hair, McDaniel CHAPTER 15 Retailing

2. All the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. Retailing Retailing

3. The Role of Retailing • Over 1.6 million U.S. retailers employ more than 24 million people • Retailers account for 11.6 percent of U.S. employment • Retailing accounts for 13 percent of U.S. businesses • Retailers ring up almost $4 trillion in sales—nearly 40 percent of the U.S. GDP • Industry is dominated by a few giant organizations, such as Wal-Mart

4. Retailing as a %of U.S. employment Retailing as a %of U.S. businesses Retailing as a %of GDP 11.6% 13% 40% The Importance of Retailing

5. Classification of Retail Operations Ownership Level of Service Product Assortment Price

6. Independent Retailers Owned by a single person or partnership and not part of a larger retail institution Chain Stores Owned and operated as a group by a single organization Franchises The right to operate a business or sell a product Classification of Ownership

7. Self Service Full Service Factory outlets Warehouse clubs Discount stores Exclusive stores Level of Service

8. Type of Retailer Service Level Assort- ment Price GrossMargin Mod Hi-High Broad Mod-High Mod High Department Store Specialty Store High Narrow Mod-High High Supermarket Low Broad Moderate Low Convenience Store Low Med-Narrow Mod High Mod High Drugstore Low-Mod Medium Moderate Low Full-line Discounter Mod-Low Med-Broad Mod Low Mod Low Specialty Discounter Mod-Low Med-Broad Mod Low-low Mod Low Warehouse Clubs Low Broad Low-very low Low Off-price Retailer Low Med-Narrow Low Low Restaurant Low-High Narrow Low-High Low-High Types of Stores and Their Characteristics

9. The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted. Price Gross Margin

10. supercenter Full-line extreme- value Specialty categorykiller Warehouse Off-price factoryoutlet Types of Retail Operations Department Stores Specialty Stores Supermarket Drugstores Convenience Stores Discount Stores Restaurants Shopping Medications Distinctive Products Food Products High TurnoverGoods Health and Beauty Specialty Goods Customer Service Cosmetics ScrambledMerchandising Specialty

11. “Aldi” – An Example Started in 1976 in Iowa, ALDI is increasing its market presence as a discount grocer. Offering a slim 1,400 products as ALDI select brands, the chain is able to give consumers deep discounts through supplier deals and their no-frills approach. Products must meet national brand standards, but consumers purchase for up to 50% less.

12. Vending Direct retailing direct mail catalogs telemarketing Direct marketing online shop at home Electronic retailing Nonstore Retailing Nonstore Retailing

13. Door-to-Door Office-to-Office Home Sales Parties http://www.avon.com Online Direct Retailing

14. Direct Mail Catalogs & Mail Order Telemarketing Electronic Retailing Types of Direct Marketing Shop-at-home networks Online retailing

15. Top E-Tailers by Sales Volume

16. Product and Trade Name Franchising Dealer agrees to sell in products provided by a manufacturer or wholesaler. Business Format Franchising An ongoing business relationship between a franchiser and a franchisee. Franchising

17. Largest U.S. Franchisors Ranking varies from year to year Search in Google

18. The Retailing Mix • Product: width and depth of assortment • Place: location and hours • Promotion: Advertising, publicity, and public relations • Price • Presentation • Personnel

19. Ch 15 Discussion Questions • Explain how various types of stores can be classified on the basis of four retail operations criteria. • Define and elaborate non-store retailing and franchising in a global economy. • Explain how we can develop a Retail Marketing Strategy.