Term
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Definition
- a business that sells products and/or services to consumers for personal or family use
- ex. Kohl's, Macy's, Wendy's, Amazon.com, Jiffy Lube, AMC Theaters, American Eagle Outfitter, Kroger |
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Term
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Definition
| - a set of business activites that adds value to the products and services sold to consumers for their personal or family use |
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Term
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Definition
| manufacturing -> wholesaler -> retailer -> consumer |
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Term
| firms that are retailers and wholesalers that sell to other business as well as consumers |
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Definition
- office depot
- the home depot
- united airlines
- bank of america
- costco |
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Term
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Definition
1. break bulk- buy it in quantities customers want
2. hold inventory- buy it at a convenient place when you want it
3. provide assortment- buy other products at the same time
4. offer services- see it before you buy, get credit, layaway |
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Term
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Definition
1. break bulk- buy it in quantities customers want
2. hold inventory- buy it at a convenient place when you want it
3. provide assortment- buy other products at the same time
4. offer services- see it before you buy, get credit, layaway
the value of the product and service increases as the retailer performs functions
- bicycle is developed at manufacturer
- bicycle is developed in several styles
- bicycle is offered in convenient location in quantities of one
- bicycle is featured on floor display
- bicycle can be bought credit or put on layaway |
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Term
| retailing is a high tech industry |
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Definition
- selling merchandise over the internet
- using internet to manage supply chains
- analyze POS data to tailor assortments to stores
- computer systems for merchandise planning |
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Term
| Sears Holdings' Strategic Evolution |
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Definition
- large number of merchandise categories- appliances, hardware, apparel
- malls evolved into places for buying soft goods, hard goods sold at category killers
- the Softer Side of Sears
- refocused on value- testing carts in stores
- acquired lands' end
- reviewed training program for new managers
- new growth with Kmart |
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Term
| Whole Foods Implementation |
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Definition
assortment beyond organic/natural foods
- private labels- Whole Food, 360 Days Value
- love, trust, and employee empowerment
- always innocation: Candy Island, Larner Street Greens, Fifth Street Seafood, In-store Massage Therapist |
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Term
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Definition
retail strategy
- customer service: modest
- location: enclosed malls
- merchandise assortment: jewelry, accessories and cosmetics for tweens and teens
- pricing: modest with sales
- communication mix: TV and Magazine ads
- store design and display: bright, fashionable and fun boutique layout |
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Term
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Definition
Retail Strategy
- customer service:modest
- location: enclosed malls
- merchandise assortment: many items in apparel and soft home
- pricing:moderate with frequent sales
- communication mix: TV, Newspaper Ads, and Special Events
- store design and display: racetract with displays |
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Term
| types of jobs in retailing |
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Definition
most entry jobs are in store management or buying, but there's
- accounting and finance
- real estate
- human resource management
- supply chain management
- advertising
- public affairs
- information systems
- loss prevention
- visual merchandising |
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Term
| general trends in retailing |
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Definition
- new types of retailers
- increased concentration
- globalization
- growth in services retailer
- demise of pure electronic retailers (webvan, eToys, etc)
- growth in use of multi-channel retailing by traditional retailers
- increase use of technology to reduce cost, increase value delivered |
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Term
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Definition
- variety (breadth of merchandise) the number of merchandise categories
- assortment (depth of merchandise) the number of items in a category (SKUs) |
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Term
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Definition
Food Retailers
- Mom and Pop Stores
- convenience stores
- supermarkets
- supercenters
General merchandise retailers
- department stores
- specialty stores
- discount stores
- category specialists
- off-price retailers
- warehouse clubs
- home improvement centers
- drugstores
- extreme value retailers |
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Term
types of retailers
conventional supermarket survival pack |
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Definition
- emphasize fresh perishables
- target health conscious and ethnic consumers
- provide a better in-store experience
- offer more private label brands |
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Term
types of retailers
issues in food retailing |
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Definition
competition from discount stores
- efficient distribution
- lower costs
- lower prices
changing consumption patterns
- time pressure
- eating out more
- meal solutions |
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Term
types of retailers
issues in department store retailing |
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Definition
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 |
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Term
types of retailers
issues in department store retailing |
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Definition
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 |
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Term
| three tiers of department stores |
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Definition
- first tier: upscale, high fashion chains with exclusive designer merchandise and excellent customer services ex. Nordstrom, Neiman Marcus, Bloomingdales, Saks
- second tier: retailers sell more modestly priced merchandise with less customer service ex. Macy's
- third tier: value oriented caters to more price conscious customers ex. JCPenney, Sears, Kohl's |
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Term
types of retailers
Issues in Discount Store retailing |
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Definition
- only big three left: Wal-Mark, Kmart, 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, Sports Authority |
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Term
types of retailers
Issues in Discount Store retailing |
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Definition
- only big three left: Wal-Mark, Kmart, 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, Sports Authority |
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Term
types of retailers
issues in specialty store retailing |
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Definition
- mall-based apparel retailers
- declin in mall shopping and apparel sales
*lack of new fashions
*less interest in fashion
*increase price consciousness
- lifestyle formats
*abercrombie and fitch and hot topic |
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Term
types of retailers
issues in drug store retailing |
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Definition
- consolidation- Walgreens, CVS, Rite-Aid
- competition from supermarkets, discount stores and mail-in orders
- evolution to a new format
*stand along sites with drive thru windows
*offering more frequent purchase food items
- improved systems provide personalized service int he pharmacy |
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Term
types of retailers
category specialists |
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Definition
- deep and narrow assortments destination stores
- low price and service
- wholesaling to business, customers, and retailing to consumers
- incredible growth |
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Term
types of retailers
category specialists |
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Definition
- deep and narrow assortments destination stores
- low price and service
- wholesaling to business, customers, and retailing to consumers
- incredible growth |
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Term
types of retailers
home improvement centers |
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Definition
- displays are warehoused
- customer service: how to select and how to use merchandise
- competition focuses on price, effort to differentiate and services provided |
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Term
types of retailers
home improvement centers |
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Definition
- displays are warehoused
- customer service: how to select and how to use merchandise
- competition focuses on price, effort to differentiate and services provided |
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Term
types of retailers
Issues in extreme value retailing |
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Definition
- focuses on lower income consumers
- names mostly imply good value not $1 price points
- low cost location
- limited services
- one of the fastest growing retail segments
ex. dollar tree, dollar general, family dollar, 99 cents only store |
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Term
types of retailers
Non-store retail formats |
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Definition
- electronic retailing
- catalog and direct mail
- direct selling
- television home shopping
- vending machines |
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Term
Non-store retail formats
ELECTRONIC RETAILING |
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Definition
- history of frenzied investments and false predictions of retail dominance
- primarily used by traditional retailers to compliment sotre and catalog offerings
- exclusive e-tailers target small and dispersed niche markets |
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Term
Non-store retail formats
AMAZON VS. EBAY |
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Definition
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 |
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Term
types of retailers
Issues in catalog retailing |
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Definition
- low start up cost
- evolution of multi-channel offering
- hard to compete with large well established firms
- increasing mail costs
- clutter from other catalogs
- general merchandise catalogs like JCPenny
- Specialty Catalogs like JC Whitney, Victoria Secret |
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Term
types of retailers
Issues in direct selling |
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Definition
- providing information and demonstrations is costly
- party plan system: merchandise is demonstrated in a party atmosphere
- multi-level network: master distributors sell to distributors who sell merchandise
pyramid schemes: firm sells to other distributors and little if any merchandise goes to end users |
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Term
types of retailers
Issues in Television home shopping |
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Definition
- consumers watch cable stations, infomercials or direct response ads
- few consumers watch regularly
- most purchases made by small proportion of viewers
- customers can't examin merchandise
- customer must wait fer merchandise to come on
- sells mostly jewelry, apparel, cosmetics, kitchenware, exercise equipment |
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Term
types of retailers
Issues in vending machine retailing |
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Definition
- sales growth has been declining due to higher prices and healthier eating habits
- new technology may help sales growth
- vending machines are beginning to accept credit
- trend of placing machines in captive consumer locations |
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Term
| types of retail ownership |
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Definition
- independent, single store establishments, wholesaler owned cooperatives
- corporate chains
- franchises |
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Term
types of retailers
franchising |
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Definition
- 30-40% of US retail sales
- franchisee pays fixed fee plus % of sales
- franchisee implements program
- why is this ownership format efficient? |
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Term
types of retailers
franchising |
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Definition
- 30-40% of US retail sales
- franchisee pays fixed fee plus % of sales
- franchisee implements program
- why is this ownership format efficient? |
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Term
types of retailers
franchising |
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Definition
- 30-40% of US retail sales
- franchisee pays fixed fee plus % of sales
- franchisee implements program
- why is this ownership format efficient? |
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Term
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Definition
- continuous market
- market information
- money
- royalty fees
- sales of products
- rental and lease fees
- license fees
- management fees |
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Term
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Definition
initial services
- market survey and site selection, facility design and layout, lease negotiation advise, 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 |
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Term
| franchisor advantages/disadvantages |
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Definition
advantages
- rapid expansion, highly motivated franchisees do a good job, additional profits by selling franchisees products and services
disadvantages
- company-owned units by be more profitable, less control then independent retailers over advertising, pricing, personnel practices, etc. |
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Term
| franchisee advantages/disadvantages |
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Definition
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 |
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