Introduction to retail

1. RETAIL &
DIST.
MANAGEME
NT
Chapter 1

2. WHAT IS
RETAILING

3. RETAILING
Includes all activities involved in selling and
providing goods and services to ultimate
consumers for personal, or household use.

4. POP QUIZ
“It Costs Five Times More to
Acquire a Customer than to Retain a
Customer” Explain.

5. EXAMPLES OF RETAILERS

6. INTEGRATED SUPPLY CHAIN
VERTICAL BACKWARDS FORWARD

7. VERTICAL INTEGRATION
• Means that a firm performs more than one set of activities
in the supply chain.
• Such as manufacturing, wholesaling and retailing.

8. BACKWARD INTAGRTION
• Retailer performs some distribution and manufacturing activities such as operating warehouses
or designing private-label merchandise.

9. FORWARD INTEGRATION
• When manufacturer undertakes retailing activities such as Disney Store and Ralph Lauren
operating its own retail stores.

10. TYPES OF RETAILING
Specialty
Stores
01
Department
Stores
02
Supermarkets
03
Convenience
Stores
04
Discount
Stores
05

11. VALUE
CREATION
FROM
RETAILERS
Provide an assortment of products and services –
enables customers to choose from a wide
selection of brands, designs, sizes, colors and
prices in one location.
Breaking bulk – provides cost efficiencies for
manufacturers and also gives the consumers more
manageable quantities they prefer.
Holding inventory - storage of products
Providing services – such as credit options,
display of products, salespeople to manage stores
and websites

12. ISSUES IN RETAIL
How can we best serve our customers while
earning a fair profit?
How can we stand out in a highly competitive
environment where consumers have so many
choices?
How can we grow our business while retaining
a core of loyal customers?

13. WHO SHOULD OPT
RETAIL
Must be a people person
Must be flexible
Should be decisive
Must have analytical skills
Must have stamina

14. MULTI CHANNEL RETAIL
WEB SITES PHYSICAL STORES

15. APPLYING
RETAILING
CONCEPT
Customer Orientation
Coordinated Effort
Value-driven
Goal Orientation
Retailing
Concept
Retail
Strategy

16. APPLYING RETAILING
CONCEPT
 Customer orientation. The retailer determines the attributes and needs
of its customers and endeavors to satisfy these needs to the fullest.
 Coordinated effort. The retailer integrates all plans and activities to
maximize efficiency
 Value-driven. The retailers offers good value to customers, whether it
be upscale or discount.
 Goal orientation. The retailers sets goals and uses its strategy to attain
them

17. CUSTOMER
SERVICE Store hours
Parking
Shopper-
friendliness
Credit
acceptance
Salespeople

18. CUSTOMER SERVICE CHECKLIST
Do we trust our customers?
Do we stand behind what we sell?
Is keeping commitments to customers
important to our company?
Do we value customer time?
Do we communicate with customers
respectfully?
Do we treat all customers with respect?
Do we thank customers for their
business?
Do we respect employees?