Chapter 2 -Types of retailers

Franchising

-30-40% of US retail sales -Franchise Pays Fixed Fee Plus % of Sales -Franchisee Implements Programs -ex: Dunkin' donuts

Off-Price Retailers

-Close-out retailers -Offer an inconsistent assortment of brand name merchandise at low prices -TJX Companies -tj maxi, marshals, home goods, burligton, coat factory, big lots. -overstock.com

Issues in drug store retailing

-Consolidation -Competition -Evolution to a New Format

Franchisor Benefits

-Continuos market -Market information -Money -Royalty fees -Sales of products -Rental and lease fees -License fees -Management fees

General Merchandise Retailers

-Department stores -Specialty stores -Discount stores -Category stores -Off-Price Retailers -Warehouse Clubs -Value Retailers

Issues in Extreme Value Retailing

-Focuses on Lower Income Consumers -Names mostly imply good value not $1 price points. -Low cost location -limited services

Reasons for Franchising Failure

-Incept management -Fraudulent activities -Market saturation

Types of retail ownership

-Independent, single store establishments (wholesale-sponsored voluntary group) -Corporate retail chains -Franchises

Issues in Specialty store retailing

-Mall-based apparel retailers -Decline in mall shopping and apparel sales (lack of new fashions) -Lifestyle formats (A&F, VS)

Food retailers

-Mom and pop stores -convenience stores -supermarkets -supercenters

Franchising trends for the new Millennium

-Sustained growth -Enduring plus un-imagined applications -international expansion -increasing tensions -greater emphasis on financial returns.

Reasons for Franchising growth

-Technological advances -Profitable utilization of capital resources -Attainment of the "American Dream" -Demographic expansion -Product/service consistency

supermarkets

-limited assortment (extreme value food retailers) -offer one or two brands and sizes

Department Store retailing

-more sales -focus on apparel and soft home -develop private labels and exclusive brands

member warehouse clubs

-offer a limited and irregular assortment of merchandise with little service at low prices -Use inexpensive store design, little customer service -low inventory holding costs by carrying a limited assortment of fast selling items.

issues in full-line discount stores

-only big left (Wal-mart, target) -Wal-Mart's Dominance -Differentiate Strategy -Wal-Mart =low price and good value -Target =More Fashionable Apparel -Competition from category specialists (ToysRUs, Best buy, sports authority)

convenience store

-tailors assortments to local market -makes more convenient to shop -offers fresh food -financial services

dollar tree, family dollar, dollar general

One of the fastest growing retail segments are know as?

Retail Mixes

Retailers Use Different _____ _____ known as: -Merchandise: variety&assortment -Services -Store design, visual merchandising -Location -Pricing

services

Retailers differ in the _____ they offer customers. -EMS offers assistance in selecting the appropriate kayak and repairing them.

Second Tier

Retailers sell more modestly priced merchandise with less customer service (Macy's)

Category Specialists

These are big-box stores that offer a narrow but deep assortment of merchandise. -Deep and Narrow assortments -destination stores -Category killers -Low price and service -Wholesaling to Business and Retailing to Consumers -Incredible Growth

First Tier

Upscale, high fashion chains with designer merchandise and excellent customer service. (Nordstrom, neiman marcus, Saks)

Third Tier

Value oriented caters to more price conscious customer (JCPenney, Sears, Kohl's)

breadth

Variety is ______

Variety

Wide vs. narrow the number of merchandise categories. (computer, motorcycle, ring, dress)

General Trends in Retailing

All of the following consist of what kind of trends? -Increased Concentration -Globalization -Growth in Use of Muti-Channel Retailing by Traditional Retailers -Increase Use of Technology to Reduce Cost; Increase Value Delivered

Category specialists

Are big-box stores that offer a narrow but deep assortment of merchandise.

depth

Assortment is ______

-time pressure -eating out more -meal solutions

Changing consumption patterns in supermarket retailing include:

-supermarkets -supercenters -warehouse clubs -convenience stores

Channel preference for food shopping channel where grocery purchasers do most of their food shopping:

-efficient distribution -lower costs -lower prices

Competition from discount stores and supermarket retailing include:

Assortment

Deep vs. shallow the number of items in a category (different kinds of phones)

Relationships with their key customers.

Department stores are building better ______ ___ _____ ____ _______.

exclusive merchandise

Department stores attempt to increase the amount of ____ _____ they sell.

develop strong images

Department stores undertake marketing campaigns to _____ _____ _____ for their stores and brands.

Initial services

Facility design and layout, management training programs,

Continuous Services

Merchandising and promotional materials, national advertising, market data and guidance.