ch. 2: types of retailers

lower Aldi, Trader Joe's

limited assortment supermarkets offer merchandise at 40-60% ___________ prices than conventional supermarkets. what are a couple examples of extreme value food retailers?

loads of competition changing consumption patterns *newer players in food retailing = blue apron, hello fresh, uber eats, and grubhub.

________ ______ _____________: can choose from supercenters, warehouse clubs, convenience stores, extreme price retailers (ex: Dollar Tree), and convenience stores. ____________ _______________ ____________: increased time pressure and people eating out more. people are also looking for meal solutions & easy-to-prepare items.

private-label merchandise loads of competition and changing consumption patterns.

_________-________ ______________ is huge for all retailers, including supermarkets, and encompasses generic/store brands. what are two trends in supermarket retailing?

variety assortment *variety can be wide or narrow, and assortment can be deep or shallow.

___________: (breadth of merchandise) number of merchandise categories a retailer offers. ex: Sam's Club - have tech, clothing, jewelry, food, etc. _______________: (depth of merchandise) number of different items offered in a merchandise category (SKUs). ex: mattress store

warehouse clubs inexpensive *ex.: Sam's Club, Costco, BJ's.

_____________ ________ offer a limited and irregular assortment of food and general merchandise with little service at low prices. they use low-rent locations, _______________ store design, and little customer service.

perishables limited assortment supermarkets (extreme value food retailers)

_______________ (meat, dairy, produce, and baked goods) account for 30-50% of supermarket sales. ______________ _____________ ______________ have a limited amount of SKUs (ex: 2,000), offer one or two brands and sizes, and are designed to maximize efficiency and reduce costs.

supercenters one-stop ex: Walmart SuperCenter, Target Superstore.

_______________, also called _______________, are large stores (185,000 square feet) that combine a supermarket with a full-line discount store (food and general merchandise retailer). these hypermarkets are considered a ________-_______ shopping experience.

locavore movement ethnic merchandise

also related to green merchandise is the __________ _________________, which focuses on reducing the carbon footprint created by transporting food throughout the world by buying local produce/ingredients. many grocery stores have specific aisles dedicated to ________ ________________.

local convenient healthy

convenience stores: ~tailor assortments to _________ market (ex: kingcake). ~makes it more ________________ to shop. ~offers more fresh, ____________ food.

restaurants financial closer

convenience stores: ~have fast, casual ________________. ~have ______________ services available, and ~are opening smaller stores ___________ to consumers, like in airports.

fresh perishables ethnic

conventional supermarkets are differentiating their offerings by: 1. emphasizing ________ _______________. 2. targeting green and ___________ consumers.

stock-keeping unit (SKU) amazon and ebay; trader joe's.

each different item of merchandise is called a _________-___________ _______. example of companies with.....a wide variety and wide assortment? what about a wide variety and narrow assortment?

supercenters (hypermarkets) warehouse clubs

in talking about competition for conventional supermarkets, we have two types of food retailers: __________________ and ________________ _________.

services assistance

retailers differ in the ____________ they offer customers. Varsity Sports offers ______________ in selecting the appropriate running shoe through an assessment. Academy, however, does not provide such additional services.

costly increase *the greater the assortment + variety = inventory investment costs go up.

stocking a deep and broad assortment is ___________ for retailers (ex: Varsity Sports - services; Academy - merchandise). when a company has many SKUs, the retailer must have backup stock for each SKU in addition to holding the inventory, meaning that inventory investment costs ___________.

power perimeter green merchandise

the ________ ______________ includes the dairy, bakery, meat, florist, produce, deli, and coffee bar in a grocery store that are found around the outer walls of the store. supermarkets are offering more _________ ______________, specifically fair trade products.

type of merchandise variety, assortment *NAICS = north american industry classification system.

there are four characteristics used to describe and categorize retailers: 1. _______ _____ ___________ (NAICS; ex: furniture and home furnishing stores, general merchandise stores, food) 2. ___________ (breadth) and _______________ (depth); SKU.

higher prices cost-benefit tradeoff

to make a profit, retailers that offer broader variety, deeper assortments, and/or additional services need to charge __________ __________ (ex: department store vs. discount store). critical decision: "_________-____________ ______________" of maintaining additional inventory or providing additional services.

assortment fresh merchandise

trader joe's provides quality merchandise at low prices by reducing its _______________ in order to control store operating expenses. supermarkets have expanded their assortments of ________ ______________ like sushi.

food, general merchandise supermarkets, supercenters, warehouse clubs, convenience stores, and mom & pop stores.

two broad categories of retailers are ________ retailers and __________ ______________ retailers. what are five examples of food retailers?

limited convenience store

warehouse clubs have low inventory holding costs by carrying a ____________ assortment of fast selling items. a ______________ __________ provides limited variety and assortment of merchandise at a convenient location with speedy checkout.

department stores, discount stores, category specialists, specialty stores, drugstores, value retailers, off-price retailers, and warehouse clubs. conventional supermarkets

what are eight examples of general merchandise retailers? ~supermarkets: _______________ _____________: a self-service food store that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise. (ex: Giant, Wegman's, Safeway, Winn Dixie)

~new types of retailers ~globalization ~growth in services retailing ~growth in omnishopping by traditional retailers ~increase use of technology to reduce cost; increase value delivered.

what are some general trends in retailing?

services offered prices, cost

3. _________ ____________ (ex: displaying merchandise, accepting credit cards, personal shopping). 4. ___________ and the _________ of offering breadth and depth of merchandise and services.

private-label experience

3. providing better value with _________-_________ merchandise. 4. providing a better shopping ______________.