Correction:In the presentation from the first class session there was a typo on the “Grading” slide.
The correct proportion/amount of points for the Exams are:
Exams #1 and #2 are 100 points each for a total of 200 points
• The Final Exam is worth 200 points.
This is consistent to what is shown on the syllabus.
Sorry if this caused any confusion.
The World of Retailing
Favorite “Refact”
Retailer Fred Lazarus, Jr.
successfully proposed to the
United States Congress that
Thanksgiving be set on the fourth
Thursday of November to expand
the Christmas shopping season.
What is Retailing?• Retailing – a set of business
activities that adds value to the products and services sold to consumers for their personal or family use.
• A retailer is a business that sells products and/or services to consumers for personal or family use.
James Darell/Getty Images
Merchandise ManagementMerchandise ManagementMerchandise ManagementMerchandise Management
1.1.Planning Merch. Planning Merch. AssortmentsAssortments
2.2.Buying SystemsBuying Systems3.3.Buying MerchandiseBuying Merchandise4.4.PricingPricing5.5.Retail CommunicationsRetail Communications
Retailing StrategyRetailing StrategyRetailing StrategyRetailing Strategy
5.5.Retail MarketingRetail Marketing6.6.Financial StrategyFinancial Strategy7.7.Retail LocationsRetail Locations8.8.Site LocationSite Location
Retail Management Decision Process
The World of RetailingThe World of RetailingThe World of RetailingThe World of Retailing1.1.IntroIntro2.2.Types of RetailersTypes of Retailers
Store ManagementStore ManagementStore ManagementStore Management
1.1.Managing the StoreManaging the Store2.2.Store Layout, Design, & Store Layout, Design, &
Visual MerchandiseVisual Merchandise3.3.Customer ServiceCustomer Service
3. Multichannel Retailing3. Multichannel Retailing4. Customer Buying 4. Customer Buying
BehaviorBehavior
9. Org. Structure and HR Mgmt.9. Org. Structure and HR Mgmt.10.10. Info Sys. & Supply Chain MgmtInfo Sys. & Supply Chain Mgmt11.11. Customer Relationship Mgmt.Customer Relationship Mgmt.
ConsumerConsumerConsumerConsumerRetailerRetailerRetailerRetailerWholesalerWholesalerWholesalerWholesaler
The Distribution Channel
ManufacturManufacturerer
ManufacturManufacturerer
Point ofProduction
Point ofSale (POS)
The Distribution Channel:VERTICAL INTEGRATION
ConsumerConsumerConsumerConsumerRetailerRetailerRetailerRetailerWholesalerWholesalerWholesalerWholesalerManufacturManufacturerer
ManufacturManufacturerer
BackwardIntegration
ForwardIntegration
How Retailers Add Value
• Provide Assortment• Break Bulk• Hold Inventory• Offer Services
Social and Economic Significance of Retailing• Economic support -
over $3.4 trillion in annual U.S. sales (greater than medical care, housing, recreation combined)
• Community Support - retail employs 27 million people in the U.S.
World’s Largest Retailers
“Hardest hit were clothing and high-fashion chains.”
Shares of J.C. Penney Co., Sears Holdings Corp., Target Corp. and Wal-Mart Stores Inc. all rose.
Retailers Post Tepid Growth
January 11, 2008
The results confirmed pre-holiday worries that falling home prices and high gasoline prices would crimp consumer spending. Retail Metrics Inc.'s index of December same-store sales rose a scant 0.4%, compared to a 3.2% gain the previous year.
The weakness among clothing and jewelry was offset elsewhere by sales of food, health care and pharmaceuticals.
Among major discount chains, Wal-Mart Stores said grocery, electronics and pharmacy businesses gained while home decor and apparel sales slipped.
World’s Largest Retailers
Environmental Factors
Macro-Environment
Competitors
Customers
Micro-EnvironmentTechnology Social Issues
Ethical/LegalIssues
Political &Economic Issues
Environmental Issues
RETAILRETAILERER
Environmental Factors
Competitors
Customers
Micro-Environment
RETAILRETAILERER
Who is my competitor?
Really??
Who is my competition?
Definitely.
I thought they sold coffee...
Who is our customer?HINT: They buy a lot of music, watch a lot of movies, drink a lot of
coffee and have a lot of disposable income...
Retail Strategy Decision Areas(Retail Mix)
Customer
Service
Retail Strategy
Store Design
& Display
Location
CommunicationsMix
Merchandise
Assortments
Pricing
Retail Mix:Macy’s
Customer
Service
Retail Strategy
Store Design
& Display
Location
Merchandise
Assortments
Pricing
Enclosed Malls
Many apparel items and soft home
Moderate with frequent
sales
CommunicationsMixTV, Newspaper
and Special Events
Racetrackwith displays
Modest
Retail Mix:Target
Customer
Service
Retail Strategy
Store Design
& Display
Location
Merchandise
Assortments
Pricing
Free-standingstores
Many Categories
Private Labels
Few Items in each category
Low to modest
CommunicationsMixTV and
Newspaper insert ads
Colorful, wide aisles displaysfor products with a grid layout
Limited
Environmental Factors:
“Story of Stuff” (on blog)Macro-
Environment
CompetitorsCustomers
Micro-EnvironmentTechnology Social Issues
Ethical/LegalIssues
Political Issues
Environmental Issues
RETAILRETAILERER