Test 3

showcase store

a manufacturer's or designer's store that sells merchandise at the introductory and erly rise stages of the fashion cycle

big box

a concept for a store that presents a large selection of goods in a selling space oversized for its merchandise category

franchise

a contractual agreement in which a firm or individual buys the exclusive right to conduct a retail business within a specified trading area under a franchiser's registered or trademarked name

shopping center

a coordinated group of retail stores, plus a parking area

leased department

a department ostensibly operated by the store in which it is found but actually run by an outsider who pays a percentage of sales to the store as rent

life-stage marketing

a marketing strategy that targets a specific demographic. it has long been the specialty of catalog retailers in particular, and helps companies to make their products more relatable

discount store

a departmentalized retail store using many self-service techniques to sell its goods. it operates usually at low profit margins, has a minimum annual volume of $500,000 and is at least 10,000 sq ft in size

strategic alliance

a form of business combination in which a retailer and a manufacturer join forces to operate more efficiently, thus improving profits for both companies, while offering customers a better product at a lower price

data warehouse

a group of super powerful computers hooked together and filled with easily accessible information about customers, transactions, and finances

chain organization

a group of twelve or more centrally owned stores, each handling somewhat similar good, which are merchandised and controlled from a central headquarters office

What is a change organization? How are buying and merchandising operations handled?

A chain organization is a group of four or more centrally owned stores, each of which handles similar merchandise. chain store buyers are typically assigned to buy a specific category of apparel within a department (category buying). Buyers distribute trend and other information to individual stores

What is a leased department, and how does it operate? Name the departments in a retail store that are frequently leased.

A leased department is merchandised by an outside organization rather than by the store itself in return for a percentage of sales. Most frequently, leased departments include furs, shoes, jewelry, and beauty salons

What is a specialty store? How are buying and merchandising handled?

A specialty store carries a limited line of merchandise. In small specialty stores, buying and merchandising is handled by the owner or store manager. Sometimes with a small staff. Large multi-department specialty stores handle buying in the same was as department stores

What are strategic alliances? What are their goals? Give some examples.

A strategic alliance is a form of business combination in which retailers and manufacturers join forces to operate more efficiently, improve profits, and give the customer a better product at a lower price. Examples include Sara Lee Intimates and Walmart.

What are the five types of operational policies that a retail store owned must establish?

Ambiance, customer services, selling services, promotional activities, frequent shopper plans

How are retailers responding to the decline of customer loyalty?

By using lifestyle and life stage strategies to attract loyal customers

What is the difference between a cart and a kiosk? Where can they usually be found?

Carts are on wheels and can be moved easily. Kiosks are larger than carts and more stationary. Both carts and kiosks are usually found in the common areas in mall, airports, and train stations

How is the buying function handled by a department store?

Department store buyers purchase for their departments, although in some very large stores they may purchase only part of the stock of a department. Buyers may buy for branch stores as well, unless the branches are far away from the parent store, in which case branches may have their own buyers.

What are the major kinds of shopping centers in the US today?

Enclosed shopping centers and malls, power centers/strips that are outdoor centers, regional malls/superregional malls/megamalls/outlet malls, air malls, and lifestyle centers

Name tree early forms of retail distribution in the United States.

General stores, peddlers, and mail order sellers

What is the difference between home TV shopping and online shopping?

Home television shopping has become a major sales tool for direct selling. Presently the home shopping networks use the entertainments mode to sell merchandise. Infomercials are very important with "hosts" and "celebrities" selling the merchandise. The Internet, or online shopping, has grown tremendously and the direct to the customer, easy ordering, click-on, click-off mode is appealing

What stage or stages of the fashion cycle would most likely be emphasized by (a) a specialty store, (b) a department store, and (c) a discount store?

Introductory/rise stage, rise and culmination stages, culmination stage

How do successful discounters make a profit?

Keeping overhead low and service minimal. To compensate for low markups, they aim for large volume and size

What strategies are retailers using to respond to the customer's desire for more convenient shopping?

Making it easier for the customer to "find it, buy it, and get out." The four dimensions for customer convenience are: locational, time-of-day, process, assortment

According to Malcom P. McNair, how do retail organizations typically evolve?

Most retailers start as low-priced distributors of consumer goods with limited customer services. To broaden their appeal, they begin to trade up, making stores more attractive., increasing the variety and quality of merchandise offered, increasing promotional activities, and adding customer services. As a result, to support these changes, prices rise and more expensive merchandise is stocked

Explain how technological developments in data warehousing and communication are being used in the fashion industries.

Technology is used for faster shipping, data warehouses where powerful computers are used to translate information about customers, transactions, and finances, and video conferences making meetings, staff development, and product development easy and more timely.

What are the six major merchandising policies that a retailer must establish?

The stage of the fashion cycle that will be emphasized, the level of quality that will be maintained, the price range or ranges that will be offered, the depth and breadth of merchandise assortments, brand policies, and exclusivity

Name some new job opportunities that are being created in retailing today as a result of the trends mentioned in this chapter.

Visual merchandiser and store designers, sales associates with advanced training in selling, product knowledge, and conflict resolution who have a new and advanced career path. Personal shoppers, trend analysts, trendsetters, and product developers are all new job opportunities.

category/classification buying

a practice whereby a chain store buyer located in a central buying office is usually assigned to purchase only a specific category or classification of merchandise instead of buying all categories carried in a single department

departmental buying

a practice whereby a department buyer is responsible for buying all the various categories of merchandise carried in that department

pop up shop

a promotion in which an empty retail location in a major city or mall opens for a few days to sell a specific product and then disappears

magalog

a promotional copy of a magazine, usually in catalog format

outlet mall

a shopping center containing outlet stores and often entertainment facilities

mom-and-pop store

a small store run by the proprietor with few or no hired assistants

kiosk

a stand that offers shelves or racks for merchandise

specialty store

a store that carries a limited line of merchandise, whether it is clothing, accessories, or furniture

broad and shallow assortment

a store that offers many different styles in limited sizes and colors

general store

an early form of retail store which carried a wide variety of mainly utilitarian consumer goods

mall

an enclosed, climate controlled shopping center

regional mall

an indoor shopping center with a trading area of at least a five-mile radius. it usually contains at least two anchor department stores, as well as many specialty stores and a food court or restaurants

vertical mall

an indoor, multistory shopping center, taller than it is wide

power center/strip

an outdoor shopping center that offers three or four category killers together

department store

as defined by the bureau of the census, a store that employs 25+ people and sells general lines of merchandise in each of three categories: home furnishings, house hold linens/dry goods, and apparel/accessories for the entire family

merchandising policies

guidelines established by store managment for merchandising executives to follow in order that the store organization may win the patronage of the specific target group(s) of customers it has chosen to serve

sensory retailing

in store stimulation of all the customer's senses, using pleasant aromas, mood music, dramatic lighting

superregional mall

larger than a regional mall, often consisting of up to one million square feet, with at least three department or major chain stores and one hundred to three hundred specialty stores. their trading area is a distance up to one hour's driving time away

megamall

larger than a superregional mall, it contains four to five million square feet

factory outlet store

manufacturer-owned store that sells company products at reduced prices in austere surroundings with minimum services

narrow and deep assortment

one in which there are relatively few styles, but these styles are stocked in all available sizes and colors

lifestyle centers

open air shopping areas anchored by a multiplex cinema and a big bookstore; they also contain a collection of restaurants

operational policies

policies designed to keep customers once they are attracted to come into a store by establishing the store's ambiance, customer services, promotions, and frequent shopper plans

air mail

retail store in airports

general merchandise retailer

retail stores which sell a number of lines of merchandise - for example, apparel and accessories; furniture and home furnishings; household lines and dry goods; hardware, appliances, and smallwares - under one roof. stores included in this group are commonly known as mass merchandisers, department stores, variety stores, general merchandise stores, or general stores

discount general merchandiser

retailers like walmart and carrefour that carry a broad range of products. from apparel to electronics, typically private label and basics. their prices are lower than department or specialty stores

discount department store

retailers that offer well-known branded apparel at 20-60% off regular department store prices. the store format resembles that of a department store

warehouse club

stock a limited number of apparel stock-keeping unites - generally whatever brands they can buy. customers are usually required to pay a membership fee in order to shop at the store, but the benefits are bargain prices at large quantities - mostly for products outside of apparel (costco, sam's, bj's)

specialty retailer

store that offer limited lines of related merchandise targeted to a more specific customer

confined style

styles that a vendor agrees to sell to only one store in a given trading area

category killer

superstores or category specialists who so dominate a market that they drive out or "kill" smaller specialty stores

ambiance

the atmosphere encountered when entering a store

fashion retailing

the business of buying and selling or merchandising goods, apparel, accessories, and home fashions

assortment

the range of stock a retailer features

off-price retailing

the selling of brand name and designer merchandise at lower-than-normal retail prices when they are at the late rise or early peak in fashion cycle

e-tailing

the selling of retail goods on the internet

hypermarket

typically offer discount grocery or superstore items and products commonly found in department stores. apparel is not necessarily the focus in this category