SlideShare a Scribd company logo
Correction: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The World of Retailing
Favorite “Refact” ,[object Object]
What is Retailing? ,[object Object],[object Object],James Darell/Getty Images
Retail Management Decision Process The World of Retailing ,[object Object],[object Object],3. Multichannel Retailing 4. Customer Buying Behavior ,[object Object],[object Object],[object Object],Merchandise Management ,[object Object],[object Object],[object Object],[object Object],[object Object],Retailing Strategy ,[object Object],[object Object],[object Object],[object Object],Store Management ,[object Object],[object Object],[object Object]
The Distribution Channel Consumer Retailer Wholesaler Manufacturer Point of Production Point of Sale (POS)
The Distribution Channel: VERTICAL INTEGRATION Backward Integration Forward Integration Consumer Retailer Wholesaler Manufacturer
How Retailers Add Value ,[object Object],[object Object],[object Object],[object Object]
Social and Economic  Significance of Retailing ,[object Object],[object Object]
World’s Largest Retailers
“ Hardest hit were clothing and high-fashion chains.”  Shares of  J.C. Penney  Co.,  Sears Holdings  Corp.,  Target  Corp. and  Wal-Mart Stores  Inc. all  rose. Retailers Post Tepid Growth January 11, 2008 The results confirmed pre-holiday worries that falling home prices and high gasoline prices would  crimp consumer spending. Retail Metrics Inc.'s index of December same-store sales rose a scant  0.4%, compared to a 3.2% gain the previous year.  The weakness among clothing and jewelry was offset elsewhere by sales of food, health care and  pharmaceuticals. Among major discount chains, Wal-Mart Stores said grocery, electronics and pharmacy businesses gained while home decor and apparel sales slipped.
World’s Largest Retailers
Environmental Factors Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal Issues Political & Economic Issues Environmental Issues RETAILER
Environmental Factors Competitors Customers Micro- Environment RETAILER
Who is my competitor?
Really??
Who is my competition?
Definitely.
I thought they sold coffee...
Who is our customer? HINT: They buy a lot of music, watch a lot of movies, drink a lot of coffee and have a lot of disposable income...
Retail Strategy Decision Areas (Retail Mix) Customer Service Store Design & Display Location Communications Mix Merchandise Assortments Pricing Retail  Strategy
Retail Mix: Macy’s Customer Service Retail  Strategy Store Design & Display Location Merchandise Assortments Pricing Enclosed Malls Many apparel items and soft home Moderate with frequent sales Communications Mix TV, Newspaper and Special Events Racetrack with displays Modest
Retail Mix: Target Customer Service Retail  Strategy Store Design & Display Location Merchandise Assortments Pricing Free-standing stores Many Categories Private Labels Few Items in each category Low to modest Communications Mix TV and Newspaper insert ads Colorful, wide aisles displays for products with a grid layout Limited
Environmental Factors: “Story of Stuff” (on blog) Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal Issues Political Issues Environmental Issues RETAILER

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Bus425 Chapter1

  • 1.
  • 2. The World of Retailing
  • 3.
  • 4.
  • 5.
  • 6. The Distribution Channel Consumer Retailer Wholesaler Manufacturer Point of Production Point of Sale (POS)
  • 7. The Distribution Channel: VERTICAL INTEGRATION Backward Integration Forward Integration Consumer Retailer Wholesaler Manufacturer
  • 8.
  • 9.
  • 11. “ Hardest hit were clothing and high-fashion chains.” Shares of J.C. Penney Co., Sears Holdings Corp., Target Corp. and Wal-Mart Stores Inc. all rose. Retailers Post Tepid Growth January 11, 2008 The results confirmed pre-holiday worries that falling home prices and high gasoline prices would crimp consumer spending. Retail Metrics Inc.'s index of December same-store sales rose a scant 0.4%, compared to a 3.2% gain the previous year. The weakness among clothing and jewelry was offset elsewhere by sales of food, health care and pharmaceuticals. Among major discount chains, Wal-Mart Stores said grocery, electronics and pharmacy businesses gained while home decor and apparel sales slipped.
  • 13. Environmental Factors Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal Issues Political & Economic Issues Environmental Issues RETAILER
  • 14. Environmental Factors Competitors Customers Micro- Environment RETAILER
  • 15. Who is my competitor?
  • 17. Who is my competition?
  • 19. I thought they sold coffee...
  • 20. Who is our customer? HINT: They buy a lot of music, watch a lot of movies, drink a lot of coffee and have a lot of disposable income...
  • 21. Retail Strategy Decision Areas (Retail Mix) Customer Service Store Design & Display Location Communications Mix Merchandise Assortments Pricing Retail Strategy
  • 22. Retail Mix: Macy’s Customer Service Retail Strategy Store Design & Display Location Merchandise Assortments Pricing Enclosed Malls Many apparel items and soft home Moderate with frequent sales Communications Mix TV, Newspaper and Special Events Racetrack with displays Modest
  • 23. Retail Mix: Target Customer Service Retail Strategy Store Design & Display Location Merchandise Assortments Pricing Free-standing stores Many Categories Private Labels Few Items in each category Low to modest Communications Mix TV and Newspaper insert ads Colorful, wide aisles displays for products with a grid layout Limited
  • 24. Environmental Factors: “Story of Stuff” (on blog) Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal Issues Political Issues Environmental Issues RETAILER