Retailing _Jan11- Lec2

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BBUS 4430 - 01

Retail ManagementWinter 2012

Jan 11, 2012



` Retailingisgreat



Start looking at Retail Stores with a

³fresh outlook´

- Start asking questions

- Start observing

- Start applying concepts

Questions on Assignment # 1



1-4



Canadian-controlled

retailers accounted for

about 60% of the total

sales.

Foreign firms

accounted for 40%.

American retailersaccounted for 38% of all

sales in Canada with

approximately 9500

stores.



Retailers are pursuing growth opportunities by

expanding their operations to other countries.



Intratype Competition

- competition between retailers of thesame type



µScrambled Merchandise¶

- The offering of merchandise nottypically associated with the storetype, such as clothing in a drugstore,is called scrambled merchandising.



Intertype competition

² competition between retailers that sell

similar merchandise using differentformats, such as discount anddepartment stores.

Examples?



` Direct competitors

` Organizations that offer similar goods and

services to the same consumer at a similar

price

` Indirect competitor

Organizations that compete for the same

consumer dollar. So you may also be in

competition with companies that offer productsthat are substitutes for yours.



` Substitutes are products or services

provided by another industry that can be

readily substituted for an industry¶s ownproducts or services

` Substitutes place a ceiling on the price

that can be charged

` They can also set new performancestandards



The retail strategy indicates how the firm plansto focus its resources to accomplish itsobjectives.

ItIdentifies:

The target market/s

The nature of the merchandise and/or

services offered

How the retailer will build a long-termadvantage over the competition



Strategic Decision Areas Involve the following strategies:

Market

Financial

Location

Organizational structure and human resources Information systems

Supply chain

CRM



Develop a retail mix that satisfies the needs of

the target market better than the competition.

Decision variables that will satisfy needs but

also influence purchase decisions.



Price

Promotion

5 P¶s



Ethics

A system or code of conduct that indicate how

one should behave.

Based on universal moral duties and obligations. Acting ethically can vary from country to country

and from company to company.

Examples of difficult situations??

1-18



Many companies have codes of ethics

guidelines to assist in doing the right thing.

We also have our own personal code of ethics

that we rely on to do the right thing. A guide to use to help you«

1-19



1-20



1. Should a retailer sell merchandise it suspects was madeusing child labour?

2. Should a retailer advertise that its prices are the lowestavailable in the market even though some items are not?

3. Should a retail buyer accept an expensive gift from a

vendor?4. Should a retail buy a product that sells well but goes

against their values?5. Should retail salespeople use a high- pressure sales

approach when they know the product is not the best for the customer¶s needs?

6. Should a retailer treat some customers better thanothers?



` Discuss with a partner your views on ethics and

values in business. important

making money the most important

Buyer beware

Can you work for a company that goes against your

values?

Retailing _Jan11- Lec2

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