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CHAPTER TWO
T Y P E S O F R E T A I L E R S
B Y J E S S A L Y N A N D B R A N D I E
THINGS WE ARE GOING TO TALK
ABOUT:
• Characteristics
• Food Retailers
• General
Merchandiser
• Service Retailers
• Ownership Types
CHARACTERISTICS OF
GENERAL MERCHANDISE RETAILERS
OBJECTIVES TO BE THINKING ABOUT:
• List the characteristics that define retailers
• Categorize the various types of food retailers
• Identify the various types of general merchandise retailers
• Explain the difference between service and merchandise retailers
• Illustrate types of ownership for retail firms
TYPES OF RETAILERS:
• All retailers are characterized by:
– Types of merchandise they offer
– Variety and Assortment
– Services
– Prices and the Cost of Offering Breadth and Depth of Merchandise and Services
FOOD RETAILERS
• Supermarkets
– Trends in Supermarkets Retailing
– Fresh Merchandise
– Green Merchandise
– Ethnic Merchandise
– Private-Label Merchandise
– Improving the Shopping Experience
EXTREME-VALUE FOOD RETAILERS
• Save-A-Lot’s limited assortment format
• means that stores carry the most
• frequently purchased grocery items in
• the most popular size and variety
• The company carries high quality
• exclusive brands – many produced by the same manufacturers of leading name brands – and an
assortment of nationally branded items.
• This allows Save-A-Lot to offer savings of up to 40% compared to conventional grocery stores –
without asking shoppers to sacrifice quality.
FOOD RETAILERS CONT.
• Supercenters
• Warehouse Clubs
• Convenience Stores
•BIGGEST CONVENIENCE STORE
Texas of course
GENERAL MERCHANDISE RETAILERS
• Specialty Store
• Drugstore
• Extreme-Value Retailers
• Off-Price Retailers
• Department Stores
• Full-Line Discount Stores
• Category Specialist
Department Stores
• Competition
-Discount Stores on Price
-Specialty Stores on Service, Depth of
Assortment
• Lower Cost by Reducing Services (?)
-Centralized Cash Wraps
• More Sales (?)
-Customers Wait for Sale
• Focus on Apparel and Soft Home
• Develop Private Labels and Exclusive
Brands
THREE TIERS OF DEPT STORES
• First Tier: Upscale, high fashion chains with exclusive designer
merchandise and excellent customer service
Nordstrom, Neiman Marcus, Saks
• Second Tier: Retailers sell more modestly priced merchandise with less
customer service
Macy’s
• Third Tier: Value oriented caters to more price conscious customer
JCPenney, Sears, Kohl’s
DISCOUNT STORE OBSTACLES
■ Only Big Left
Wal-Mart, Target
■ Wal-Mart’s Dominance
■ Differentiate Strategy
Wal-Mart = Low Price and Good value
Target = More Fashionable Apparel
■ Competition from Category Specialists
Toys-R-Us, Circuit City, Sports Authority
SERVICE RETAILING
• Service Retailers:
Type of Service Service Retail Firms
Airlines American, Delta, British Airways, Singapore Airways
Automobile main/repair Jiffy Lube, Midas, AAMCO
Automobile rental Hertz, Avis, Budget, Alamo
Banks Citibank, NCNB, Bank of America
Child care centers Kindercare, Gymboree
Credit cards American Express, VISA, Mastercard
Education University of Florida, Babson College
Entertainment parks Disney, Universal Studios, Six Flags
Express package delivery Federal Express, UPS, US Postal Service
Financial services Merrill Lynch, Dean Witter
Fitness Jazzercise, Bally’s, Gold’s Gym
Health Care Humana, HCA
Home maintenance Chemlawn, MiniMaid, Roto-Rooter
DIFFERENCES BETWEEN SERVICE AND
MERCHANDISE RETAILERS
■ Intangibility
Problems in Evaluating Service Quality
Performance of Service Provider
■ Simultaneous Production and Delivery
Importance of Service Provider
■ Perishability
No Inventory, Must Fill Capacity
■ Inconsistency of the Offering
Importance of HR Management
TYPES OF OWNERSHIP
■ Independent, Single Store
Establishments
 Wholesale-sponsored
voluntary group
■ Corporate Retail Chains
■ Franchises
FRANCHISE BUSINESS MODEL
Chapter two types of retailers with pictures

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Chapter two types of retailers with pictures

  • 1. CHAPTER TWO T Y P E S O F R E T A I L E R S B Y J E S S A L Y N A N D B R A N D I E
  • 2. THINGS WE ARE GOING TO TALK ABOUT: • Characteristics • Food Retailers • General Merchandiser • Service Retailers • Ownership Types
  • 4. OBJECTIVES TO BE THINKING ABOUT: • List the characteristics that define retailers • Categorize the various types of food retailers • Identify the various types of general merchandise retailers • Explain the difference between service and merchandise retailers • Illustrate types of ownership for retail firms
  • 5. TYPES OF RETAILERS: • All retailers are characterized by: – Types of merchandise they offer – Variety and Assortment – Services – Prices and the Cost of Offering Breadth and Depth of Merchandise and Services
  • 6. FOOD RETAILERS • Supermarkets – Trends in Supermarkets Retailing – Fresh Merchandise – Green Merchandise – Ethnic Merchandise – Private-Label Merchandise – Improving the Shopping Experience
  • 7. EXTREME-VALUE FOOD RETAILERS • Save-A-Lot’s limited assortment format • means that stores carry the most • frequently purchased grocery items in • the most popular size and variety • The company carries high quality • exclusive brands – many produced by the same manufacturers of leading name brands – and an assortment of nationally branded items. • This allows Save-A-Lot to offer savings of up to 40% compared to conventional grocery stores – without asking shoppers to sacrifice quality.
  • 8. FOOD RETAILERS CONT. • Supercenters • Warehouse Clubs • Convenience Stores •BIGGEST CONVENIENCE STORE Texas of course
  • 9.
  • 10. GENERAL MERCHANDISE RETAILERS • Specialty Store • Drugstore • Extreme-Value Retailers • Off-Price Retailers • Department Stores • Full-Line Discount Stores • Category Specialist
  • 11.
  • 12. Department Stores • Competition -Discount Stores on Price -Specialty Stores on Service, Depth of Assortment • Lower Cost by Reducing Services (?) -Centralized Cash Wraps • More Sales (?) -Customers Wait for Sale • Focus on Apparel and Soft Home • Develop Private Labels and Exclusive Brands
  • 13. THREE TIERS OF DEPT STORES • First Tier: Upscale, high fashion chains with exclusive designer merchandise and excellent customer service Nordstrom, Neiman Marcus, Saks • Second Tier: Retailers sell more modestly priced merchandise with less customer service Macy’s • Third Tier: Value oriented caters to more price conscious customer JCPenney, Sears, Kohl’s
  • 14. DISCOUNT STORE OBSTACLES ■ Only Big Left Wal-Mart, Target ■ Wal-Mart’s Dominance ■ Differentiate Strategy Wal-Mart = Low Price and Good value Target = More Fashionable Apparel ■ Competition from Category Specialists Toys-R-Us, Circuit City, Sports Authority
  • 15. SERVICE RETAILING • Service Retailers: Type of Service Service Retail Firms Airlines American, Delta, British Airways, Singapore Airways Automobile main/repair Jiffy Lube, Midas, AAMCO Automobile rental Hertz, Avis, Budget, Alamo Banks Citibank, NCNB, Bank of America Child care centers Kindercare, Gymboree Credit cards American Express, VISA, Mastercard Education University of Florida, Babson College Entertainment parks Disney, Universal Studios, Six Flags Express package delivery Federal Express, UPS, US Postal Service Financial services Merrill Lynch, Dean Witter Fitness Jazzercise, Bally’s, Gold’s Gym Health Care Humana, HCA Home maintenance Chemlawn, MiniMaid, Roto-Rooter
  • 16. DIFFERENCES BETWEEN SERVICE AND MERCHANDISE RETAILERS ■ Intangibility Problems in Evaluating Service Quality Performance of Service Provider ■ Simultaneous Production and Delivery Importance of Service Provider ■ Perishability No Inventory, Must Fill Capacity ■ Inconsistency of the Offering Importance of HR Management
  • 17. TYPES OF OWNERSHIP ■ Independent, Single Store Establishments  Wholesale-sponsored voluntary group ■ Corporate Retail Chains ■ Franchises