Retailing


Includes the business activities involved with
the sale of goods and service to the final
consumer for personal, family, or household
use
Final step in the distribution channel
Types of retailers by ownership




Independent
Corporate (retail) chain
Franchise
Leased department
Independent store





Operates only one outlet
Personal service
Good location
Close customer contact
Attracts entrepreneurs
Corporate (retail) chain



Multiple outlets
Centralized purchasing and decision making
More complex organizations
Franchising


Contractual agreement between a franchisor
and a retail franchisee
Franchisee runs a certain form of business
under an established name and according to
specific rules
Leased department



Section of a store rented to an outside party
Operates under store rules
Pays a percentage of sales as rent
Types of Retailer by strategy









Convenience store
Conventional supermarket
Food-based supermarket
Combination store
Specialty store
Category killer
Traditional department store
Full-line discount store
Warehouse club
Convenience store





Well-situated
Food oriented
Limited assortment
Low service
High prices
Conventional supermarket



Departmentalized food store
Food
Related products
Food-based superstore

Broad range of food and non-food items
Combination store
(supercenter/hypermart)





General merchandise and grocery items
General merchandise25-40% of sales
Efficient operations
Increased impulse purchases
Greater number of transactions
Specialty store



Limited variety
Great depth
Usually one product line, or several related
product lines
Category killer


“discount specialty store”
Especially large specialty store
Traditional Department Store




Great variety
Depth of assortment varies by department
Often anchor stores
Average to above average prices
Full- line discount store





Low prices
Low service
Broad variety
Shallow assortment
Lower rent locations
Warehouse club


Wholesale and retail consumers
Pay yearly dues for membership
Non-store retailers



Direct marketing
Vending machine
Direct selling
Direct marketing


Consumer is exposed to a good or service by
a non-personal medium
Order by mail, phone or PC
Vending machine



Coin or card operated machinery to dispense
goods or services
Require intensive training
Cards and electronic tracking
Direct selling

Involves personal contact with consumers in
their homes and other non-store locations
and phone solicitations



Phone
Referrals
Party method
Considerations



Location
Atmosphere
Scrambled merchandising
Location



Isolated
Unplanned business district
Planned shopping center
Atmosphere

Physical attributes of a retailer that are used
to develop an image and draw customers




Exterior
General interior
Store layout
Display
Scrambled merchandising

Adding goods and services that are unrelated
to each other and the firm’s original business

One stop shopping



Increased traffic
High profits
Increases competition
Technological advances







Computerized POP
Self-checkout
Video kiosks
Site selection software
Networking distribution
Anti-theft developments
Computerized reorder