Retailing involves all activities related to selling goods and services to consumers. Retailing makes up 11.6% of US employment, 13% of businesses, and 40% of the economy. Retail businesses contribute to the standard of living by providing goods and services and employing over 15 million people. Retailers can be classified by ownership as independent retailers, chain stores, or franchises. They can also be classified by level of service, product assortment, and price. Major types of retailers include department stores, specialty stores, supermarkets, drugstores, convenience stores, discount stores, and restaurants.

1. Retailing
KE=Y TERM5 KEEY CONCEPTS
L01 retailing all the activities Discuss the Retailing as a %
of U.S. employment
Retailing as a %
of U.S. businesses
Retailing as a
% of GDP
directly related to the sale importance
of goods and services to
of retailing 11 6 % 13%
the ultimate consumer for personal,
in the U.S. e c o n o m y. 40%
nonbusiness use
Retailing plays a vital
role in the U.S. economy
L0 2 independent retailers
retailers owned by a single for two main reasons.
First, retail businesses
person or partnership and
not operated as part of a larger retail contribute to our high standard of living by providing a vast and diverse number of goods
institution and services. Second, retailing employs a large part of the U.S. working population—more
chain stores stores owned and than 15 million people.
operated as a group by a single
organization Explain the dimensions STORE 1— Ownership
franchise the right to operate a by which retailers can be — Level of service
business or to sell a product classified. Many different kinds — Product assortment
gross margin the amount of money of retailers exist. A retail establishment can be
the retailer makes as a percentage of classified according to its ownership, level of
sales after the cost of goods sold is service, product assortment, and price. On the basis of ownership, retailers can be broadly
subtracted differentiated as independent retailers, chain stores, or franchise outlets. The level of service
retailers provide can be classified along a continuum of high to low. Retailers also classify
L0 3 department store
a store housing several
themselves by the breadth and depth of their product assortments; some retailers have
concentrated product assortments, whereas others have extensive product assortments.
departments under one
Finally, general price levels also classify a store, from discounters offering low prices to
roof
exclusive specialty stores where high prices are the norm. Retailers use these latter three
buyer a department head who variables to position themselves in the marketplace.
selects the merchandise for his
or her department and may also
be responsible for promotion and Describe the major types of retail operations. The major types of
personnel retail stores are department stores, specialty stores, supermarkets, drugstores,
convenience stores, discount stores, and restaurants. Department stores
specialty store a retail store
specializing in a given type of carry a wide assortment of shopping and specialty goods, are organized into relatively
merchandise independent departments, and offset higher prices by emphasizing customer service and
decor. Specialty stores typically carry a narrower but deeper assortment of merchandise,
supermarket a large,
departmentalized, self-service retailer emphasizing distinctive products and a high level of customer service. Supermarkets are
that specializes in food and some large self-service retailers that offer a wide variety of food products and some nonfood
nonfood items items. Drugstores are retail formats that sell mostly prescription and over-the-counter
scrambled merchandising the medications, health and beauty aids, cosmetics, and specialty items. Convenience stores
tendency to offer a wide variety of carry a limited line of high-turnover convenience goods. Discount stores offer low-priced
nontraditional goods and services general merchandise and consist of four types: full-line discounters, specialty discount
under one roof retailers, warehouse clubs, and off-price retailers. Finally, restaurants straddle the line
drugstore a retail store that stocks between the retailing and services industries; although restaurants sell a product—food
pharmacy-related products and and drink—to final consumers, they can also be considered service marketers because they
services as its main draw provide consumers with the service of preparing food and providing table service.
convenience store a miniature
supermarket, carrying only a limited
line of high-turnover convenience
goods
(f)20l2Cengag