Types of retailers
•Download as PPT, PDF•
1 like•1,441 views
This document discusses different types of retailers and issues related to retailing. It begins by outlining trends in retailing like increased concentration and globalization. It then describes different types of retailers based on their retail mix, including merchandise retailers like supermarkets, department stores, and specialty stores. It also discusses service retailers and compares them to merchandise retailers. The document outlines different types of ownership structures for retailers like franchising.
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Types of retailers
Similar to Types of retailers (20)
More from MD SALMAN ANJUM
More from MD SALMAN ANJUM (20)
Types of retailers
- 2. 2-2 Questions ■ What trends shape today’s retailers? ■ What are the different types of retailers? ■ How do retailers differ in terms of how they meet the needs of their customers? ■ How do service retailers differ from merchandise retailers? ■ What are the types of ownership for retail firms?
- 3. 2-3 General Trends in Retailing ■ New Types of Retailers ■ Increased Concentration ■ Globalization ■ Growth In Services Retailer ■ Demise of Pure Electronic Retailers ■ Growth in Use of Multi-Channel Retailing by Traditional Retailers ■ Increase Use of Technology to Reduce Cost; Increase Value Delivered
- 4. 2-4 Types of Retailers ■ Retailers Use Different Retail Mixes -merchandise: variety (breadth) / assortment (depth) -services -store design, visual merchandising -location -pricing ■ Infinite Variations ■ Some combination of retail mixes satisfy the needs of significant segments and persist over time.
- 5. 2-5 Different Retail Mixes ■ Merchandise: variety (breadth) ■ Assortment (depth) ■ Services ■ Store design, visual merchandising ■ Location ■ Pricing
- 6. 2-6 Types of Merchandise Retailers Mom and Pop Stores Convenience Stores Supermarkets Supercenters Department Stores Specialty Stores Discount Stores Category Specialists Off-Price Retailers Warehouse Clubs Value Retailers Food Retailers General Merchandise Retailers
- 7. 2-7 Merchandise Offering Variety (breadth of merchandise): wide vs. narrow - The number of merchandise categories Assortment (depth of merchandise): deep vs. shallow -the number of items in a category (SKUs)
- 8. 2-8 Services offered Retailers differ in the services they offer customers
- 9. 2-9 Illustration of Variety and Assortment Lady Foot Locker Sports Authority Active SKUs: 44 N/A Classics SKUs: 44 N/A Converse SKUs: 25 N/A Elite Running SKUs: 22 N/A Fitness N/A SKUs: 1 Running SKUs: 44 SKUs: 39 Trail Running N/A SKUs: 7 Training SKUs: 22 SKUs: 2 Walking SKUs: 11 SKUs: 12
- 10. 2-10 Variety and Assortment of Coffee Makers Makers Less Than 8 Cups Makers Greater Than 10 Cups Specialty Makers Linens N’ Things Brands Black and Decker Cuisinart, Mr. Coffee, Black and Decker, Faberware, Braun, Hamilton Beach, Krups, Sunbeam Braun, Keurig, Breville, Krups # SKUs 2 SKUs 19 SKUs 7 SKUs Price Range $19.99-19.99 $29.99-199.99 $59.99-249.99 Average Price $19.99 $83.67 $157.13 Target Brands Black and Decker, Mr. Coffee Mr. Coffee, Black and Decker, Hamilton Beach, Delonghi, Kitchen Aid, Bunn, Chefmate Keurig, Mr. Coffee, Delonghi, Philips # SKUs 4 SKUs 16 SKUs 5 SKUs Price Range $10.48-$29.99 $9.49-$119 $29.99-99.99 Average Price $22.61 $51.83 $74.99
- 11. 2-11 Variety and Assortment of Bicycle Mountain Road Hybrid/ Cross BMX Comfort/ Cruisers Training/ Child Wal-Mart Pacific, Dynacraft, Huffy, Kent International, Pacific Cycle Pacific, Kent International, Huffy _______ Currie Tech., Dumar, Dynacraft, Huffy, Kent Internation al, Pacific Cycle _______ Dumar, Dynacraft, Huffy, Kent International, MGA, Pacific Cycle, Radio Flyer SKUs 23 SKUs 15 SKUs _____ 22 SKUs _____ 53 SKUs Price $40-$250 $130-$1500 _____ $40-$250 _____ $130-$1500 Gator Cycle Trek, Gary Fisher Trek, LeMond Trek Trek, Gary Fisher Trek SKUs 23 SKUs 18 SKUs 12 SKUs 4 SKUs 5 SKUs Price $290-$5,700 $770-$5,800 $360-$1300 $360-$590 $160-$270
- 12. 2-12 SKUs for Digital Cameras Wal-Mart Best Buy Model Megapixel s Price Model Megapixel s Price Snapshooter Standard Canon Powershot SX100 8 299.96 Canon Powershot A560 7 149.99 Fujifilm FinePix Z10 7 139.84 HP M53BNDL 6 179.99 Fujifilm FinePix Z5 6 162 HP Photosmart M547 6 99.99 Kodak C813 8 119.77 Kodak Easyshare C613 7 99.99 Kodak Easyshare C613 6 89.88 Kodak Easyshare C613P 6 99.99 Kodak Easyshare V1003 10 149.34 Kodak Easyshare M753 7 129.99 Pentax Optio M30 7 169.84 Nikon CoolPix L11 6 109.99 Polaroid i733LP 7 99.88 Olympus FE-340 8 199.99 Samsung S730 7 99.77 Sony Cybershot DSC-S700 7 149.99 Samsung S850 8 129.77 Sony Cybershot DSC-W55 7 179.99
- 13. 2-13 Prices and the cost of offering breath and depth of merchandise and services Stocking a deep and broad assortment is costly for retailers. Many SKUs Inventory Investment Cost Because the retailer must have backup stock for each SKU in addition to holding the inventory
- 14. 2-14 Food Retailers ■ Supermarkets ■ Supercenters ■ Warehouse Clubs ■ Convenience Stores Channel preference for food shopping channel where grocery purchasers do most of their food shopping
- 15. Supermarket 2-15
- 16. Hypermarket 2-16
- 17. 2-17 Types of Food Retailers Conventional Supermarket Limited Assortment Supermarket Supercenter Warehouse Club Convenience Store Percentage Food 70-80 80-90 30-40 60 90 Size (000 sq ft) 20-30 7-10 150-220 100-150 2-3 SKUs (000) 20-40 1-1.5 100-150 20 2-3 Variety average narrow broad broad narrow Assortment average shallow deep shallow shallow Ambiance pleasant minimal average minimal average Service modest limited limited limited limited # of checkout lines 6-10 2-4 20-30 10-15 1-2 Prices average lowest low low high Gross Margin % 20-22 10-12 15-18 12-15 25-30
- 18. 2-18 Supermarkets ■ Conventional supermarkets 30,000 SKU ■ Limited assortment supermarkets (extreme value food retailers) 2000 SKU Offer one or two brands and sizes Designed to maximize efficiency and reduce costs Offer merchandise at 40-60% lower prices than conventional supermarkets
- 19. 2-19 ALDI: German’s Wal-Mart ALDI provides quality merchandise at low prices by reducing its assortment in order to control store operating expenses
- 20. 2-20 Trends in Supermarket Retailing Competition from Discount Stores Changing Consumption Patterns Efficient Distribution Lower Costs Lower Prices Time Pressure Eating Out More Meal Solutions
- 21. 2-21
- 22. 2-22 Supercenters and Warehouse Clubs ■ The fastest growing retail category ■ Large stores (150,000 – 220,000 square feet) that combine a supermarket with a full-line discount store ■ One-stop shopping experience Supercenters ■ Offer a limited and irregular assortment of food and general merchandise with little service at low prices ■ Use low-locations, inexpensive store design, little customer service ■ Low inventory holding costs by carrying a limited assortment of fast selling items Warehouse Clubs
- 23. 2-23 Convenience Store ■ Tailors assortments to local market ■ Makes more convenient to shop ■ Offers fresh, healthy food ■ Fast, casual restaurants ■ Financial services available ■ Opening smaller stores closer to consumers (like airports)
- 24. 2-24 Types of General Merchandise Retailers ■ Department Stores ■ Specialty Stores ■ Category Specialists ■ Home Improvement Centers ■ Discount Stores ■ Drugstores ■ Off-Price retailers ■ Extreme Value Retailers
- 25. 2-25 Characteristics of General Merchandise Retailers
- 26. 2-26 Category Specialists ■ Deep and Narrow Assortments Destination Stores ■ Category killers ■ Low Price and Service ■ Wholesaling to Business Customers and Retailing to Consumers ■ Incredible Growth
- 27. 2-27 Category Specialists Sephora, France’s leading perfume/cosmetic chain LVMH’s division
- 28. ■ They are called category killers as they specialize in their fields, such as electronics (Best Buy) and sporting goods (Sport Authority) 2-28
- 29. 2-29
- 30. 2-30 Off-Price Retailers ■ Close-out retailers ■ Offer an inconsistent assortment of brand name merchandise at low prices TJX companies (T.J. Maxx, Marshalls. HomeGoods) Ross Stores, Burlington Coat factory, Big Lots, Tuesday Morning
- 31. 2-31 Types of Non-store Retailers
- 32. 2-32 Electronic Retailing ■ Many retailers operate from virtual storefronts on the World Wide Web, usually maintaining little or no inventory, ordering directly from vendors to fill customer orders ■ Primarily used by traditional retailers to compliment store and catalog offerings ■ Exclusive e-tailers target small and dispersed niche markets
- 33. 2-33 What are Amazon and eBay? ■ Amazon.com – Merchandise to consumers. Provides website development and fulfillment services to other retailers ■ eBay – Acts as a mall or other shopping center providing a “place” for buyers and sellers to meet Don Farrall/Getty Images
- 34. 2-34 Services vs. 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
- 36. 2-36 Types of Retail Ownership (c) Brand X Pictures/PunchStock ■ Independent, Single Store Establishments ■ Corporate Retail Chains ■ Franchises
- 37. 2-37 Retailers Using Franchise Business Model
- 38. 2-38 Franchising The McGraw-Hill Companies, Inc./Jill Braaten, photographer ■ Franchisee Pays Fixed Fee Plus % of Sales ■ Franchisee Implements Program ■ Why is this Ownership Format Efficient?
- 39. 2-39 Reasons for Franchising Growth Technological advances Profitable utilization of capital resources Demographic expansion Product/service consistency
- 40. 2-40 Reasons for Franchising Failure Inept management Fraudulent activities Market saturation
- 41. 2-41 Franchisor Benefits Continuous marketContinuous market Market informationMarket information MoneyMoney Sales of productsSales of products Rental and lease feesRental and lease fees License feesLicense fees Management feesManagement fees Royalty fees
- 42. 2-42 Franchisee Benefits Initial Services Market survey and site selection, facility design and layout, lease negotiation advice, financing advice, operating manuals, management training programs, and employee training. Continuous Services Field supervision, merchandising and promotional materials, management and employee retraining, quality inspection, national advertising, centralized purchasing, market data and guidance, auditing and record keeping, management reports, and group insurance plans.
- 43. 2-43 Franchisor Advantages/Disadvantages Advantages Rapid expansion, highly motivated franchisees do a good job, additional profits by selling franchisees products and services. Disadvantages Company-owned units may be more profitable, less control then independent retailers over advertising, pricing, personnel practices, etc.
- 44. 2-44 Franchisee Advantages/Disadvantages Advantages Established/proven product/service, business and technical assistance, and reduction in risk. Disadvantages Loss of control since only semi-independent, franchisee outlets may compete with corporate- owned outlets, and high royalties, fees, costs on equipment, supplies, merchandise, rental/lease rates and mandatory participation in promotional and support services.