Introduction to Retailing 275 Final

What is an advantage of an independent, single-store over other forms of retail ownership?

Ability to react quickly to market changes

A retailer that is hard to get to, even if the customer can see it, has low __________________.

Accessibility

What is retailing?

It is the set of business activities that adds value to the products and services sold to consumers for their personal use.

Which of the following best describes retailing?

It is the set of business activities that adds value to the products and services sold to consumers for their personal use.

Some retailers locate a smaller, temporary version of their typical retail store to create a buzz, test new concepts or to evaluate a new neighborhood or city. These retail formats are referred to as _________ .

Pop-ups

Some retailers, such as Wal-Mart, Carrefour, Starbucks, Zara, and IKEA, have been successful in international markets. Key characteristics of these retailers that have successfully exploited international growth opportunities include all of the following EXCEPT:

Strong marketing strategies

What is the #1 franchise in the USA?

Subway

Which of the following is the biggest threat to convenience stores?

Supermarket chains and discount stores that also offer gasoline

A(n) ______________ is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.

Supply chain

A retail strategy is made up of the the retailer's competitive advantage, the retail format and the _____________ ____________ (2 words).

Target Market

Which of the following is a group of consumers with similar needs which the retailer plan to focus its resources and retail mix?

Target market

Which of the following is a fixed asset?

The display fixtures in a store

A retail strategy is a statement that identifies all the following EXCEPT _______.

The employee compensation plan

A retailer sells products & services to __________.

The end user

The most salient reason to invest in a franchise is:

The recognition of a well known brand name

Strategic planning is an ongoing process. The retail strategy does not change often; the strategy statement is reviewed and altered only when major changes in the retailer's environment or capabilities occur. The strategic planning process consists of a sequence of steps that may take a year or two to conduct and implement by many levels of the organzation. Identify the order of these seven steps according to your textbook (all or nothing question...1 point for getting all correctly in order; 0 points if any are out of order)

1. define the business mission 2. Conduct a SWOT analysis 3. Identify strategic opportunities 4. Evaluate the alternatives 5. Establish specific objectives and allocate resources 6. Develop a retail mix to implement the strategy 7. Evaluate performance and make adjustments

Approximately what percent of working people are employed in the retail industry?

20%

According to the most recent top USA retailers from NRF, who is the 3rd largest USA retailer?

Costco

Trade area zones are best determined based upon____________.

Customer drive time

What month of the year brings in the highest retail sales for MOST retailers?

December

Managers in retail make many different decisions regarding their business. A decision that would NOT be a part of retail management is:

Deciding which customers can buy what products

The type of retailer that focuses mostly on soft goods, carries both national and private brands, and has a wide breadth with a high ambiance would be best desribed as a(n):

Department store

What type of retailer is Kohl's considered to be?

Department store

Category killer retailers such as Best Buy or IKEA are considered to be a(n)_______________ .

Destination store

How could a fitness center best develop a sustainable competitive advantage over a national chain like Gold's Gym?

Develop relationships with members offering unique work-out programs with designated instructors recommending specific routines to suit their needs

When a retail firm invests in and owns a division which builds and operates stores in a foreign country, it is called:

Direct investment

A retailer that carries both hard and soft lines, with a wide breadth, shallow depth, usually freestanding store, centrally located checkouts and a low profit margin percent best describes which type of retailer?

Discount store

What type of retailer is Target considered to be?

Discount store

To best compare the operating performance of one retailer to another retailer, an analyst would compare each retailer's ___________.

EBITA or EBITDA

Operating profit margin, which is gross margin minus operating expenses, is also known as ____________.

Earnings before interest, taxes and amoritization (EBITA)

The labels of Jennifer Lopez at Kohl's, Tommy Hilfiger at Macy's, American Living at JCPenney and Kardashian Kollection at Sears are what type of brands?

Exclusive

The most common type of leases used at community and neighborhood shopping centers are _____________.

Fixed-rate leases

When considering the largest retailers worldwide, ___________ retailers continue to dominate among them.

Food

The _________ ownership format combines the advantages of owner-managed business with the efficiencies of centralized decision making in chain store operations.

Franchise

Which entry strategy or approach when entering foreign markets requires the least amount of investment and the lowest risk?

Franchising

In the late 1950's, JC Penney was the only one on the board of directors who was against

Allowing credit card transactions

At Mall of America, Macy's, Sears and Nordstrom are the ________.

Anchors

The number of different items in a merchandise category is the __________.

Assortment

Retail locations that are unconnected to other retail stores, and are destination stores are located ____________ .

At freestanding sites

Where is the corporate headquarters (where buying and product decisions are made) for the largest retailer in the world?

Bentonville, Arkansas

Wal-Mart carries groceries, sporting goods, automotive, electronics, housewares, health and beauty aids, apparel, footwear, jewelry, camping gear and more. Wal-Mart has a __________.

Broad Variety

A community that wishes to keep an old town atmosphere has forbidden the use of any neon lighting. This would be an example of a ____________.

Building code

Why do category specialists call themselves "category killers"?

By offering a complete assortment in a category at low prices, category specialists can "kill" a category of merchandise for other retailers.

A retailer that is owned and controlled by "members" where costs are kept low, wages are kept high, and no profits are expected is best described as a(n):

Co-op store

Which of the following is NOT a part of the retail mix for a furniture store?

Competitive response

New retail formats are created and evolve because _______________.

Consumers' needs, wants and competition change

When a retailer enters a new international market, owning and operating their own stores and building brand new stores, this is referred to as (a/n):

Greenfield

Which of the following refers to the profit on the merchandise sold?

Gross Margin

7-11 is a convenience store that is characterized so because it __________.

Has a limited variety and assortment of merchandise

Which of the following is the best opportunity for retailers to develop a sustainable competitive advantage?

Having excellent customer service and building customer relationships

According to the most recent top USA retailers from NRF, who is the 4th largest USA retailer?

Home Depot

When it comes to service retailing, since customers cannot see, touch or feel what is being sold, the _________ of the service can sometimes be a concern for customers in trying to decide whether to buy or not.

Intangibility

The competition between retailers that sell similar merchandise using different formats, such as discount and department stores, is called:

Intertype competition

Which of the following is an example of a productivity measure?

Inventory turnover

Why is providing assortments an advantageous business activity?

It enables the customer to choose from a wide selection of brands, designs, sizes and prices all in one store.

Which of the following does NOT describe breaking bulk?

It hurts manufacturers' profits

JC Penney was the name of the founder of the namesake retail chain. JC stood for :

James Cash

Which of the following would be an example of intratype competitors?

Kohls and Macy's

According to the most recent top USA retailers from NRF, who is the 2nd largest USA retailer?

Kroger

Many Americans are choosing to purchase more locally grown and produced food in order to reduce their carbon footprint caused by the transportation of food throughout the world. This is part of the ___________ .

Locavore movement

Which of the following statements about the U.S. distribution system is true?

Many U.S. retailers are large enough to have their own warehouses and have eliminated their need for wholesalers.

Recently Restoration Hardware announce a new growth strategy by opening stores called RH Modern and RH Teen (see article under Materials). Select the growth strategy the best supports this endeavor:

Market Expansion

Select the growth strategy the best supports this description: A retailer using "cross-selling" or "add-on" sales strategy to increase their average sales per customer.

Market Penetration

Select the growth strategy the best supports this description: Target stores have over 20 locations in the Minneapolis and St.Paul Minnesota, "Twin Cities" area.

Market Penetration

Abercrombie & Fitch's (A & F) primary target market is college students. When A & F opened a new, lower-priced chain called Hollister, what growth strategy did A & F use?

Market expansion

When it comes to retail strategies, who thinks mostly about the customer's buying behaviors and building the brand?

Marketers

Which of the following is net profit?

Measurement of the overall performance of the company

When it comes to retail strategies, whose position thinks mostly about the products, about making the sale to customers and the logistics of getting the product to be available to the customers the quickest?

Merchants

Which of the following refers to the total number of dollars received by a retailer after all refunds have been paid to customers for returned merchandise?

Net sales

Which of the following is a first tier department store?

Nordstrom

The type of retailer that is mostly known for inconsistent assortments is best described as a(n):

Off-price store

What type of retailer is T.J. Maxx considered to be?

Off-price store

Best Buy is considered to be a category specialist retailer because it ________ .

Offers a narrow variety but deep assortment of merchandise

When owning and operating JC Penney, the man JC Penney referred to the store managers as

Partners

Service retailers sometimes find it difficult to match supply and demand because the creation and consumption of the service is simultaneous. This is a factor of ___________ .

Perishability

Which of the following businesses would not be considered a retailer?

Proctor & Gamble

What best describes the value-creating function of BagBorroworSteal.com of providing jewelry and handbag rental services?

Providing services

DJ owns the Beach Shack, a small souvenir shop on a busy beach boardwalk which specializes in a variety of t-shirts, towels and beach toys. He has identified his customer as a person walking on the boardwalk - mostly vacationers who want something cheap, functional and fun. He located himself close to parking for easy access, unlike some of his competitors. DJ seems to have developed a strong:

RETAIL STRATEGY or location strategy

The ______________ identifies the target market, the merchandise and services that will be offered, and how the company will be competitive long-term.

Retail Strategy

What should be the most appropriate financial performance measure for a retailer?

Return on assets

Retailers must consider the trade-offs between lower operating costs and potential ___________ from having multiple stores in an area.

Sales cannibalization

Warehouse clubs:

Sell merchandise in a no-frills atmosphere

Retailers that have narrow product variety and deep assortments are best described as:

Specialty stores

What does the acryonym SKU stand for?

Stock Keeping Unit

How can a small town quilting supply store best compete against Wal-Mart, and still thrive?

The shop can offer classes on quilting.

What does a retail strategy identify?

The target market

With discount stores now also offering groceries, what can conventional supermarkets do to differentiate their offerings?

They can produce private label merchandise.

JC Penney's "Golden Rule" store was different than others because

They had set prices

One of the most important factors affecting store sales is the number of vehicles and pedestrians that pass by the site, or the ________________.

Traffic flow

What is the word used to describe a retailer's merchandise "breadth"?

Variety

_________ refers to the number of different merchandise categories a retailer offers.

Variety

Which of the following is an area in which a retailer can develop a long-term competitive advantage?

Vendor relations

Select the growth strategy the best supports this description: Russell Athletic harvesting their own cotton and manufacturing their own fabric for producing their apparel goods.

Vertical Integration

Bennetton, a popular retail chain from Italy, manufactures many of the sweaters it sells in its retail outlets at a textile mill in North Carolina. Benetton is practicing:

Vertical integration

According to the most recent top USA retailers from NRF, who is the 5th largest USA retailer?

Walgreens

What is the top retailer?

Walmart

Strategic retailers will map out competitors in the market place using different category desciptions on an X axis than on the Y axis to identify

White space

Which of the following does NOT describe how retailers increase the value consumers receive from their purchases?

Wholesaling

Advantages of this type of strategic assortments are: high level of customer traffic, customer loyalty and one stop shopping convenience for customers.

Wide and deep

Disadvantages of this type of strategic assortments are: customers are focused mostly on price, and customers may be dissatisfied with the little selection of products

Wide and shallow