Types of Store-Based Retailers
Service Retailers
2
Chapter Objectives
Identify the types of store-based retailers.
Explain the importance of service retailers.
Identify the types of service retailers.
3
Shopping for Retailers
You can purchase the same product from several
types of retail stores.
Different kinds of store-based retailers serve
particular customers’ needs and wants.
4
What Are Store-Based
Retailers?
Store-based retailers are
the most prevalent form of
retailing.
store-based retailer
a retailer that operates
and conducts business
from a fixed location
5
General-Merchandise
Retailers
A general-merchandise
retailer sells merchandise
as well as different kinds of
services.
general-merchandise
retailer a retailer that
sells a large variety of
merchandise
6
General-Merchandise
Retailers
Shopping in a department
store can be like shopping
in a series of smaller
specialty stores under one
roof.
department store a
retailer that separates
merchandise into
different departments, or
sections
They also offer a variety of
customer services.
7
General-Merchandise
Retailers
A branch store sells much the same merchandise
as the main, or parent store, only on a smaller
scale.
Twig stores are smaller than branch stores and sell
a limited line of merchandise.
8
General-Merchandise
Retailers
A junior department store
specializes in just a few
merchandise lines.
junior department
store a smaller version
of a department store
that does not carry as
many merchandise lines
Prices are higher than
those of other retailers.
9
General-Merchandise
Retailers
Many shoppers prefer the
smaller environment of a
specialty store.
specialty store a store
that sells a limited type
of merchandise
A discount department
store is not as concerned
with the atmosphere of its
shopping environment.
discount department
store a department store
that sells merchandise at
low prices
10
General-Merchandise
Retailers
Variety stores sell many
different kinds of
merchandise but do not
generally offer customer
services.
variety store a small
retail outlet that sells a
variety of low-priced
merchandise
Off-price retailers sell
merchandise at prices
lower than those at
department or specialty
stores.
off-price retailer a
retailer that buys
merchandise directly from
the manufacturer and
sells it at low prices
11
General-Merchandise
Retailers
Prices are lower at outlet
stores, but you don’t
always get the latest styles
or the best selection.
outlet store a
manufacturer-owned
store, also called a
factory store, that sells
overproduced or
returned merchandise at
low prices
A warehouse club buys
and sells in bulk and does
not offer many customer
services.
warehouse club a large
store that offers volume
discount prices and
minimal variety,
presentation, and service
12
Food Retailers
Food retailers are
specialized retailers and
are in a separate category
because they are a large
segment of the retail
industry.
food retailer a retailer
that sells mostly food
and related goods
13
Food Retailers
A supermarket is the
department store of food
retailing.
supermarket a selfservice department store
that sells mostly food
and other retail
merchandise
A convenience store sells
snack food items, staples
such as bread, and
household items.
convenience store a
small retail outlet that
sells convenience foods
as well as staples and
household items at
higher prices
14
Food Retailers
Supercenters are housed
in large buildings and stock
many products.
supercenter a
combination of a large
discount department
store and a discount
supermarket
Warehouse clubs offer
discount merchandise as
well as food. Food is sold in
larger quantities than at
supermarkets.
15
1.
Describe two ways in which a department
store differs from a specialty store.
2.
How is an off-price store different from an
outlet store?
3.
List the four types of food retailers discussed
in this section.
16
Familiarity Breeds Success
Some retail companies use the Web to
Operating an e-tail business
anjust
electronic
channel—the
do more on
than
send customers
to
Web—can be costly,their
due store
to design,
delivery,
returns,
locations.
Sephora
is aand
operating expenses.
beauty-store chain that carries over
lines companies
of products.crashed in the
Though Many larger250
dot-com
small
stores like Harris
Cyclery
West
Newton,
Its1990’s,
Web site,
Sephora.com,
has the
imageofand
accessibility
increase
sales using can
a basic
of Massachusetts,
the retail stores.actually
Customers
at Sephora.com
find Web
the
site.products
Today, a and
thirdpersonalized
of Harris’s bicycle
business
rides
same
customer
service
thatinison
the Web
get hard-to-find
parts and puts
personal
service.
found
in thetoretail
store. This familiarity
customers
at
ease so they will shop online again.
Describe an e-business’s home page to your class after
viewing
one throughon
marketingseries.glencoe.com.
For
more information
retailing,
go to marketingseries.glencoe.com.
17
Service and Retailing
A service retailer
operates his or her core
business from a fixed
location just as
merchandise retailers do.
service retailer retailer
that sells something that
is intangible or does not
last very long
18
Types of Service Retailers
A bank is an example of a
financial-services retailer.
financial-services
retailer a retailer that
provides personal
financial services
Hotels, motels, inns, and
campgrounds are examples
of hospitality and lodging
services.
hospitality and lodging
services retail services
that provide you with a
place to live in comfort
for one or several days
19
Types of Service Retailers
Household cleaning
companies, carpenters, and
automobile dealers are
examples of maintenance
and repair-service
retailers.
maintenance and
repair-service retailer
a retailer that provides
services that require
special training or
equipment
Physicians, barbers, and
music teachers are
examples of personal
services.
personal services
services you use to
enhance physical or
emotional well-being
20
Types of Service Retailers
Bowling alleys, amusement
parks, and travel agencies
are examples of companies
in the recreation and
tourism services industry.
recreation and tourism
services a category of
the retailing industry that
provides leisure activities
21
Types of Service Retailers
Some rental services only
rent one thing, such as cars.
Others specialize in general
rentals.
rental services
services that provide a
way to use goods
without having to
purchase anything
The area of restaurants and
food services is diverse.
Examples include fine
dining, casual dining, and
fast food.
22
Types of Service Retailers
Security-services retailers protect your home,
person, and property.
Transportation-services retailers are in the business
of moving people or products from one place to
another.
23
Service Retailers
Accounting Firm
Financial-Services
Retailer
?
Hotel
Hospitality
and Lodging Services Retailer
?
Lawn Care
Maintenance
and Repair-Services Retailer
?
Hairstylist
Personal-Services
Retailer
?
Movie Theater
Video and DVD Rental
Caterer
Burglar Alarms
Airlines
Recreation
and Tourism-Services Retailer
?
Rental-Services
Retailer
?
Restaurants
and Food-Services Retailer
?
Security-Services
Retailer
?
Transportation-Services
Retailer
?
24
1.
Name the nine categories of service
retailers.
2.
What are three types of restaurant and foodservice retailers?
3.
How are service retailers like product
retailers?
25
Checking Concepts
1. Define store-based
retailers.
2. Describe what generalmerchandise retailers
sell.
3. Name four examples of
general-merchandise
retailers.
continued
Answers may vary
1. General2.
3.
Store-based
but
should
include
retailers
merchandise
operate
four
thesell
following:
and of
retailers
conduct
a large
department
store,
business
variety
of from
a
junior
department
fixed location.
merchandise
store, off-price
retailer, outlet store,
and warehouse or
wholesale club.
26
Checking Concepts
4. Identify three
maintenance and repairservices retailers.
5. Compare supercenters
and warehouse clubs.
6. Describe service
retailers.
clubs offer
4.. Warehouse
5
6.
Answersretailers
Service
for
volume
discountand
maintenance
sell
something
that
retailing, less variety,
repair-service
is
intangible or
and minimal
retailers
does
notmay
last
presentation
andvery
includeinconsistent
long.
gardeners,
service,
retail
offerings, and
landscapers,
may
require a
housecleaners,
membership fee.
lawn-care
Supercenters are a
companies,
combination ofor
a large
automobile
repair
discount
department
store
and a
companies.
supermarket.
continued
27
Checking Concepts
7. Explain what the
hospitality and lodging
industry provides.
Critical Thinking
7. The
8.
Foodhospitality
retailers are
and
lodging industry
categorized
provides a place
separately
because
to
live inare
they
comfort
such afor
one orsegment
large
several of
days.
the
retail industry.
8. Explain why food
retailers are categorized
separately.
28
29
End of