Wiki3 Diff Stores

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Different Types of Stores By Katie Miller

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Transcript of Wiki3 Diff Stores

Page 1: Wiki3 Diff Stores

Different Types of StoresBy Katie Miller

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Three Tiers of Department Stores

• First Tier: upscale, high fashion chains with exclusive designer merchandise and excellent customer service.

• Example: Nordstrom, Neiman Marcus, Bloomingdales, Saks

• Second Tier: Retailers sell more modestly• priced merchandise with less customer

service: • Example: Macy’s• • Third Tier: Value oriented caters to more

price conscious customer• Example: JCPenney, Sears, Kohl’s

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Issues in Department Store

Retailing Competition - Discount Stores on Price -Specialty Stores on Service, Depth

of Assortment Lower Cost by Reducing Services -Centralized Cash Wraps More Sales -Customers Wait for Sale Focus on Apparel and Soft Home Develop Private Labels and

Exclusive Brands

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Full-Line Discount Stores

• Full line discount stores are retailers that offer a broad variety of merchandise, limited service, and low prices.

• Offer both private labels and national brands.• Wal-Mart alone accounts for 66% of full-line

discount sales.• Full-line discount stores confront intense

competition from discount specialty stores that focus on a single category of merchandise.

• (Office depot and Bed & Beyond)

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Issues in Discount Store Retailing

Only Big Three Left Wal-Mart, Kmart, Target

Wal-Mart’s Dominance

Differentiate Strategy Wal-Mart = Low Price and Good

value Target = More Fashionable

Apparel

Competition from Category Specialists Toys-R-Us, Circuit City, Sports

Authority

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Specialty Stores• Specialty stores concentrate

on a limited number of complementary merchandise categories and provide a high level of service in a small stores.

• They tailor their retail strategy toward specific market segments by offering deep but narrow assortments and sales associate expertise.

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Issues in Specialty Store Retailing

Mall-Based Apparel Retailers

Decline in Mall Shopping and Apparel Sales

-Lack of New Fashions -Less Interest in Fashion -Increase Price Consciousness

Lifestyle Formats – Abercrombie and Fitch and Hot Topics

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Drugstores • Drug stores are stores that

concentrate on health and personal grooming merchandise.

• Experiencing sustained sales growth because of the aging population.

• Drug store competition• Pharmacies in discount stores• Prescription mail-order retailers

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Issues in Drug Store Retailing

• Consolidation – Walgreens, CVS, Rite-Aid• Evolution to a New Format• -Stand Alone Sites with Drive Thru Windows• -offering more frequent purchase food items• Improved systems provide personalized

service in the pharmacy

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Category Specialists• Deep and Narrow Assortments of merchandise.

• Use a self-service approach, but they offer assistance in some areas of the store.

• Wholesaling to Business Customers and Retailing to Consumers

• Incredible Growth

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Category Specialists

Continued…• A home Improvement center is a category specialist offering equipment & material used by do-it-yourselfers & contractors to make home improvements.

• Complete category assortment at low prices.

• The largest U.S. home improvement chains • Home depot• Lowes

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Home Improvement

Centers• Displays are warehoused

• Customer Service: How to select and how to use merchandise

• Competition focuses on price, effort to differentiate and services provided

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Off-price Retailers• Also known as Close-out retailers wh0 sell

end-of–the-season items• Offers an assortment of name-brand

merchandise at low prices.• Merchandise might be odd sizes or unpopular

colors/styles.• Buy at lower prices• Purchased at 1/5 to ¼ of the original whole

sale price

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Off-price Retailers• Outlet stores are off price retailers owned by

department or specialty stores.

• Factory Outlets are owned by manufacturers.

• Outlets are viewed to improve their revenues from irregulars, production over-runs, and returned merchandise.