Ch 11 - Retailing

Factory Outlet

An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods. Ex: Nike, Polo, coach, Dolce & Gabana

Corporate Chains

2 or more outlets that are commonly owned and controlled. Ex: Macy's, Target, Kroger, CVS

Retailer

A business whose sales come primarily from retailing.

Category Killer

A giant Specialty store that carries a very deep assortment of a particular line. Bestbuy, Vitamin Shoppe, Bed Bath and Beyond.

Shopping Center

A group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. Can be regional (contains 50 or more stores) or Community (contains between 15-50) Most are neighborhood centers or strip malls (contain 5-15 stores). Lifestyle Centers = Tysons/Springfield Town Center

Supermarket

A large, low-cost, low-margin, high-volume, self-esrvice stire that carries a wide variety of grocery and household products. Ex: Kroger, Safeway, SuperValu, Publix

Experiential Retailing

Adding an experiential aspect to the shopping experience by allowing customer's to try their products in the uses they should be applied to. Adds to the stores layout, display, background music, colors, smells, interactive displays. Black = Sophistication, Orange = Fairness/Affordability, White = Simplicity/Purity, Blue = Trust/Dependability Ex: LL Bean, Bass Pro Shops, Nike Stores, Under Armour, Build-a-Bear

Discount Store

A retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume. Ex: Walmart, Target, Kohl's

Specialty Store

A retail store that carries a narrow product line with a deep assortment within that line. Ex: REI, Sunglass Hut, Sephora, William-Sonoma

Department Store

A retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or mechandisers. Ex: Macy's, Sears, Neiman Marcus

Off-Price Retailer

A retailer that buys at a less-than-regular wholesale prices and sells at less than retail. TJ Maxx (independent off-price retailer), Costco, Sam's Club, BJ's (warehouse clubs), Marshalls

Service Retailer

A retailer whose product line is actually a service; Ex: hotels, airlines, banks, colleges, and many others.

Convenience Store

A small store, located near a residential area. that is open long hours 7 days a week and carries a limited line of high-turnover convenience goods. Ex: 7-Eleven, Circle K, Speedway, Sheetz

Superstore

A store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services. Ex: Walmart Supercenter, Super Target, Meijer (discount stores); Best Buy, Petco, Staples, Bed Bath & Beyond (Category killers).

Warehouse Club

An off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees. Ex: Costco, BJ's, Sam's Club

Retailing

All the activities involved in selling products or services directly to final consumers for their personal, non business use. Almost like an add, allowing people to try and see products in person, so that they can buy it online. Touch point to build imagery for people, online is cold, bring the warmth.

Independent Off-Price Retailer

An off-price retailer that is independently owned and operated or a division of a larger retail corporation.

Services Mix

Can help set one retailer apart from another by inviting customers to ask questions or consult service representatives in person or via phone or keyboard.

Franchise Organization

Contractual association between a franchiser (a manufacturer/wholesaler/service organization) and franchisees (independent business people who buy the right to own and operate one or more units in the franchise system). Command about 45% of retail sales in the US. Ex: H&R Block, McDonald's, Goodwill, Subway, Jiffy Lube

Omni-Channel Retailing

Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.

Shopper Marketing

Focusing the entire marketing process on turning shoppers into buyers as they approach the point of sale, whether during in-store, online, or mobile shopping. Built around the first moment of truth, the 3-5 seconds a customer considers a product on a store shelf.

Retailer Cooperative

Group of Independent retailers who jointly establish a central buying organization and conduct joint promotion efforts. Ex: Associated Grocers, Ace Hardware

Limited-Service Retailer

Provide more sales assistance because they carry more shopping goods about which customers need information. Their increased operating costs result in higher prices. Ex: Sears, JC Penny, Macy's

Pop-Up Stores and Flash Sales

Retailers create short lived stores to spread brand awareness, create buzz in busy areas and to promote their products by taking advantage of local events as well as seasonal weather and attractions. Low scale to take advantage of the events.

Self-Service Retailer

Serve customers who are willing to perform their own locate-compare-select process to save time or money. Is the basis of all discount operations and is typically used by retailers selling convenience goods and nationally branded, fast-moving shopping goods. Ex: Super Markets, target, kohl's

Omni-Channel Buyers

Shoppers who make very little distinction between in-store and online shopping and for whom the path to a retail purchase runs across multiple channels.

Product Assorment

Should differentiate the store from other competitors while matching target shoppers' expectations. Offer a highly targeted one, or by offering merchandise that no other competitor carries such as store brands or national brands on which it holds exclusive rights.

Full-Service Retailer

Such as high-end specialty stores and first-class department stores that assist customers in every phase of the shopping process. Usually carry more specialty goods for which customers need or want assistance or advice.

Retail Convergence

The merging of consumers, products, prices, and retailers that create greater competition and difficulty in differentiating product assortments for retailers.

Showrooming

The shopping practice of coming into retail store showrooms to check out merchandise and prices but instead buying from an online-only rival, sometimes while in the store. Opposite to webrooming. Cut add budget, and allow them to touch things and feel good about brand.

Voluntary Chain

Wholesaler-sponsored group of independent retailers engaged in group buying and merchandising. Ex: IGA, Western Auto, True Value (hardware)