3.03 fashion
retailers
Types of retailers
•General merchandisers
•Specialized merchandisers
General merchandisers
•Carry many types of goods in
several price ranges
•May be a rural general store or a
huge mass merchandiser
Specialized Merchandisers
•Narrow lines of related merchandise
•Distinct group of customers
•Market certain categories of goods
to particular age groups, sizes, and
consumer tastes and preferences
•Examples: Victoria’s Secret,
Footlocker, Lane Bryant
Department Store
•Large-scale mass merchandisers**
•Usually carry a wide range of sizes**
•Carry household goods**
•“Departmentalized” by category/sizes
of goods being sold
•(more . . .)
•Offer numerous customer services
such as gift wrap, layaway
•Sell to many income levels, but
generally target middle to upper
income customers
•Advertise heavily
•Large buying and sales volume
Types of department stores
(don’t write this down)
•Branch stores
•Flagship stores
•Junior department stores
•Chain stores
Branch stores
Small retail stores owned and operated by
a parent store.
•May be located in suburbs or other
urban areas
•Receive merchandise and
operation instructions from the
original store
Flagship stores
“Parent” or main stores originally located
in a central business district.
•Responsible for merchandising and
promotion for entire operation
•Can get merchandise to branch stores
on short notice
Junior department stores
Small department stores with
limited assortments of apparel,
housewares, gifts, and household
textiles.
•Moderately priced
•Locally owned
•Low sales volume
Chain stores
A group of stores owned, managed,
merchandised, and controlled by a
central office.
•All stores carry similar goods at similar prices.
•Private label merchandise (Example: Kenmore,
Hunt Club)
•Decisions made at central headquarters
•May serve as anchor stores
Anchor stores: The attractions that draw
customers to shopping centers and malls.
Discount store retailing
Discount stores: Mass merchandisers
that sell at lower-than-average prices.
•Located in high
traffic areas
•minimal customer
service**
•Merchandise is
paid for at
checkout counters
located near store
exits.
•High sales volume**
•Fashion followers
•Extended operating
hours**
Discount store retailing (cont.)
•Many imports from low-wage
countries
Off-price discounters
Factory outlets
Off-price Discounters
Retailers that sell brand name or designer
merchandise at lower-than-normal prices.
•High fashion goods at moderate
prices
•Changing collection of
merchandise
•Buy merchandise at belowwholesale prices
•Labels may be cut out to protect
merchandise sold in upscale
shops
Off-price discounters (cont.)
•Make low-cost special purchases during
the season when other stores are planning
for the next season
•Stock consists of production overruns**,
end-of-season goods**, closeouts**, and
irregulars**.
Factory outlets
Discount stores that are manufacturer
owned and operated**
•Sell only merchandise
produced by the company
•Products sold include
overruns, canceled orders,
and discontinued items.
•May be located in factory
malls
Specialty store retailing
Specialty stores: Retailers that
sell limited classifications of
merchandise.
•Low sales volume
Franchise stores
•High prices
Boutiques
•Offer unusual
merchandise, more
personalized service,
convenience, and
ambience
•Known for a certain level
of design or quality of
merchandise
Franchise stores
***Retail establishments in which a firm or
an individual buys the right to use a
famous or established name or trademark
in a specified trading area.
Franchise stores (cont.)
•Often located in exclusive
shopping areas of major cities
or boutique areas within large
department stores
•The designer does not own
the franchise and does not run
the business. They only
supply goods to the retailer.
Boutiques
Small, stand-alone shops or areas
within larger stores that sell
***unusual, limited quantity
apparel, accessories, or
decorative items.
Boutiques (cont.)
•High level of customer
service***
•Fashion-forward
merchandise***
•Target special-interest
customers***
•Unique images
•New, artistic, and
handmade items
Nonstore retailing
Selling without a conventional store
facility.
•Mail-order retailing
•Telecommunication retailing
•In-home selling
Mail-order
Selling merchandise through
catalogs distributed to
customers.
•Customers select
items by looking at
pictures and reading
product descriptions.
•Orders are placed by
mail, toll-free calls,
computer, or fax.
Telecommunication retailing
Selling merchandise using
communication devices.
Television retailing***
•Television channels are used to
show and describe merchandise.
•Many celebrities sell signature
lines of merchandise.
•Consumers can control what they
view.
•Used to introduce and test the
market for new products
Internet retailing
•Electronic retailing or “e-tailing”
•Combines computer and telephone
technologies with marketing and
merchandising
•Allows customers to view “electronic
catalogs”
•***Allows for comparison shopping
In-home selling
•Used to sell cosmetics,
jewelry, clothing lines, and
other merchandise through
selling parties or door-to-door
sales
•Merchandise is often high
quality and unusual in design.
•Prices may be high.