chap 13

-off price retailers

(last season, surplus) The three main types of off price retailers are: 1. independent off price retailers 2. factory outlets 3. warehouse clubs

-Corporate Chains

2 or more outlets that are commonly owned and controlled -size allows them to buy in large quantities at lower prices and gain promotional economies ex: sears

-Retailer cooperatives

a group of independent retailers that and together to set up a joint owned central wholesale operation and conduct joint merchandising and promotion effort ex: Ace Hardware

type of retailers

amount of service -self service retailers -limited service retailers -full service retailers PRODUCT LINE -specialty stores -department stores -supermarkets -convenience stores -superstores -category killers -service retailers RELATIVE PRICES -discount stores -off price retailers ORGANIZATIONAL APPROACH -corporate chains -voluntary chains -retailer cooperatives -franchise organizations

-Franchise organizations

based on some unique product or service on a method of doing business or on the trade name, good will, or patent that the franchiser has developed ex: mcdonalds.

-category killers

deep in category with sales staff ex: bestbuy

1. Independent off price retailers

either are independently owned and run or are divisions of larger retail corporations. ex: TJ Maxx

-service retailers

ex: hotels, motels, banks airlines, colleges

-full service retailers

include high end specialty stores and first class department stores. Sales person assist customers in every phase of the shopping process

-convenience stores

limited line of high turnover goods

2. Factory Outlets

manufacturer owned and operated stores sometimes group together in factory outlet malls. ex: Tanger Outlets

The Wheel of Retailing

many new types of retailing forms begin as low margin, low price, low status operations and challenge established retailers. As they succeed they upgrade their facilities and offer more services, increasing their cost and forcing them to increase prices, eventually becoming the retailers they replaced

-superstores

much larger than regular supermarket and offer a large assortment of routinely purchased food products, non food items and services -supercenters (hypermarkets) are very large combination of food and discount and stores. ex: target, walmart

-specialty stores

narrow product line with deep assortment

3. Warehouse Clubs

operate in huge, drafty, warehouse like facilities and offer few frills ex: BJs

-limited service retailers

provide more sales assistance because they carry more shopping goods about which customers need information

-Discount stores

sell standard merchandise at lower prices by accepting lower margins and selling higher volume ex: walmart

-self service retailers

serve customers who are willing to perform their own "locate-compare-select" process to save time or money

-supermarkets

supermarkets' share of the groceries and consumables market plunged from 89% in 1988 to less the 50% in 2008

-Voluntary Chains

whole sales sponsored groups of independent retailers that engaged in group buying and common merchandising ex: IGA supermarket

-department stores

wide variety of product lines