Merchandise retailers

-44/45

Third Digit:

breaks down into clothing/general merchandise/etc

Fourth/Fifth Digits:

finer classification

clothing/shoes/jewelry/luggage

fifth: Mens clothing vs. Womens

# merchandise categories offered

"Breadth" 

# different items of merchandise

within category

"Depth" 

self-service food store

groceries

meat

produce

-limited sales (nonfood) merchandise 

makes Wal-Mart seem luxurious

- Save-A-Lot & ALDI

one/two brands (one being store brand)

NO credit cards/ free bags provided 

much lower prices 

1) Emphasize fresh perishables

2) target health-concious & ethnic customers

3) provide better in-store experience

4) offer more private-label brands

purchasing from factories that pay workers a

living wage - much more than minimum

fastest growing retail category

supermarket + full-line discount store

**Wal-Mart

-one-stop shop 

70% food 30% general merchandise

large stores, not as large as supercenters

**Carrefour

(greater emphasis on perishables - European) 

retailers offering limited assortment

- low prices for ultimate consumers/businesses

Costco & Sam's

simple interiors

wide aisles for forklifts

little service is offered

limited variety at convenient locations

Milk,eggs,bread etc

changing to compete - more local markets

*fresh food, healthy fast food, etc

carry broad variety and deep assortment

customer services, distinct dept's, pleasing ambience

JC Penny, Kohl's, Macy's, etc

Three Tiers:

1) Upscale = Neiman Marcus, Bloomingdales, Nordy's

2) Traditional = Macy's, Dillards

3) Value = Target

broad variety

limited services

low prices

less fashion oriented

*K-Mart, Target 

close-out retailers

TJX Companies are America's Largest

*Big Lots, Tuesday Morning, Burlington Coat Factory

Ross, TJ MAxx, etc 

salespeople contact customers directly

demonstrate directly

take orders directly

deliver directly

etc

Party Plan System

(Direct Selling)

salespeople encourage customers to act as hosts

*Tupperware

Cutco 

people serve as master distributors

-recruit others to be in network

*Amway

develops when firm/program designed to sell to other distributors, rather than end users

profit from the middle, not ultimate consumer - illegal

1) Intangibility

2) Simultaneous production and consumption

3) Perishability

4) Inconsistency of offerings

1) Independent/ Single-store establishments

-flexible, no bureaucracies

- tailor offerings to needs 

2) Corporate Retail Chains

- centalized decision making

-negotiate lower pricing 

3) Franchising 

- 40% retail sales in US