CHAPTER 12 RETAILING STRATEGY. DEFINITION OF RETAILER Sells majority of sales to consumers.
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Transcript of CHAPTER 12 RETAILING STRATEGY. DEFINITION OF RETAILER Sells majority of sales to consumers.
RETAILING STRATEGY
• Current Types of Retailers
• Retail Revenue Streams
• Retail Cost Efficiencies
• Concentrated Niches
CURRENT TYPES OF RETAILERS
• Retail stores only
• Online retailers only
• Retail stores and online retailers
RETAIL STORE INNOVATIONS
Industry Period Innovation
Department Store 1880’s Urban Growth
Supermarket 1930’s Depression
Discounter 1950’s Affluence
Specialty Market 1980’s Breakup of Markets
ONLINE RETAILING EXAMPLES
• Warby Parker eyewear
• Threadless
• Blinds.com
• Blue Nile
• Fanatic, Inc
ONLINE JEWELRER(Blue Nile)
Make the sale
Collect the money
Buy diamonds from wholesaler
Drop ship from wholesaler to customer
RETAIL REVENUE STREAMS
• Sale of product
• Credit add-on
• Service add-on
• Warranty add-on
• Trade-in
RETAIL COST EFFICIENCIES
Activities Cost Savings
Self-Service Reduces sales staff
Supply Chains Reduces logistic costs
Internet Selling Reduces channel costs