Weekly assignment 2
Ret. Mgt.
Week 3 - A
Welcome!
#newsworthy
Mattress Form (Disruption)
#gratitude
“Cultivate the habit of being grateful for every good thing that comes to you, and to give thanks continuously. And because all things have contributed to your advancement, you should include all things in your gratitude.”
― Ralph Waldo Emerson
Strategy Mix (p. 111)
A “firm may be characterized by its strategy mix, the firm’s particular combination of store location, operating procedures, goods/services offered, pricing tactics, store atmosphere and customer services, and promotional methods.”
Note: It might be nice seeing some of these highlighted in your Final Project/Presentation. Just a friendly heads-up.
Distination Retailing (p. 111)
Are folks going out of their way to hit up your retail firm?
Do they view you are both distinctive, worthwhile, and as such would they be willing to, say, go the extra mile?
Ways of Being a Destination Retailer: (p. 111)
Be price-oriented (not Whole Foods of 2015)
Be upscale #qualitymatters
Be convenient #access #access #access
Offer variety for the sake of comparison
- Warning: #paradoxofchoice
Offer superior customer service
Be innovative (show Ashland Co-op Instagram)
WHEEL OF RETAILING (p. 111-112)
“According to the Wheel of Retailing theory, retail innovations often first appear as low-price operators with low costs and low profit margin requirements. Over time, the innovators upgrade the products they carry to improve their facilities and customer service (by adding better-quality items, locating in higher-rent sites, providing credit and delivery, and so on), and prices rise.” (Ex: See: Figure 5-1 on pg. 112)
#GETLOW
SCRAMBLED MERCHANIDIZING (p. 113)
“Scrambled merchandizing occurs when a retailer adds goods and services that may be unrelated to each other and to the firm’s original business.”
Increasing a variety of inventory is the name of the game here.
“Scrambled merchandizing is popular for many reasons: Retailers want to increase overall revenues; fast selling, highly profitable goods and services are usually the ones added; consumers make more impulse purchases; people like one-stop shopping; different target markets may be reached; and the impact of seasonality and competition is reduced.”
It is also “contagious. Drugstores, bookstores, florists, kitchenware stores and gift shops are all affected by supermarkets’ scrambled merchandizing.” [Think: Safeway, Albertsons, and now... Target]
RETAIL LIFE CYCLE (p. 114)
It “states that retail institutions—like the goods and services they sell pass through identifiable life stages: introduction (early growth), growth (accelerated development), maturity, and decline.” (See: Figure 5-4, p. 115)
Flash Sales (p. 114)
“One retail format in the innovation stage is the online flash-sale retail Web site. Many flash-sale Web sites specialize in selling few items in limited sizes and colors of high-end brand apparel
Ex: gearbust.com
Cp. Amazon Prime Day
Mergers, Diversification, and Downsizing (p. 116-117)
“Mergers involve the combination of separately owned retail firms. Some mergers take place between retailers of different types (cp. Michael Kors & Gianni Versace (2018); American Online & Time Warner (2000); AT&T & Bell South (2006); and Exxon & Mobile (1999))
See also: https:// www.cbinsights.com /research/consumer-tech-acquisition-merger-deals/
Food Oriented Retailers (p. 119)
“A convenience store is typically a well-located, food oriented retailer that is open long hours and carries a moderate number of items. The store facility is small (only a fraction of the size of a conventional supermarket) and has average to above-average prices and average atmosphere and customer services.”
154k @U.S.
Annual Sales = $233 billion
See: https:// www.convenience.org /Media/Press-Releases/2017/PR040517#.W7oYfRNKjSA
Conenience cont... (p. 119)
“The convenience store industry does have problems: Some areas a saturated with stores; some stores have become too big, making shopping less convenient; supermarkets now offer longer hours and more nonfood items; a decrease in tobacco purchasing, which is a big sales category; and some chains have had financial woes.”
Conventional Supermarkets (p. 120)
“A conventional supermarket is a departmentalized food store with a wide range of food and related products; sales of general merchandise are rather limited.”
“This institution started more than 86 years ago when it was recognized that large-scale operations would let a retailer combine volume sales, self service, and low prices.”
“Doe several decades, overall supermarket sales have been about 70 to 75 percent of the U.S. market.”
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Combination Stores (p. 121)
“A combination store unites supermarket and general merchandise in one facility, with general merchandise accounting for 25 to 40 percent of sales.” #fredmeyer #meijer
Began in the “1960s and early 1970s...” in response to a growing demand for one-stop shopping and “integrating operations under one management” (p. 121).
Also SUPERCENTERS/HYPERMARKETS (cp. Walmart Supercenters)
and Idiocracy
Image Link: http://uncyclopedia.wikia.com/wiki/File:Idiocracy_costco.jpg
Box [Limited Line] Stores (p. 121)
“The box (limited-line) store is a food based discounter that focuses on a small selection of items, moderate hours of operation (compared with other supermarkets), few services, and limited manufacturer brands.” #aldi
Warehouse Stores
“A warehouse store is a food-based discounter that offers a moderate number of food items in a no-frills setting. It appeals to one-stop food shoppers, concentrates on special purchases of popular brands, uses cut-case displays, offers little service, posts prices on shelves and locates in secondary sites.” # groceryoutlet
Origins: 1970s
Annual Sales = Over $70 billion
Traditional Dept. Store
“A department store is a large retail unit with an extensive assortment (width and depth) of goods and services that is organized into separate departments for purposes of buying, promotion, customer service, and control.”
#Saks5thAvenus
#Macy’s
#Sears
#JCPenney
Variety Store
“A Variety store handles an assortment of inexpensive and popularly priced goods and services, such as apparel and accessories, costume jewelry, motions and small wares, candy, toys, and other items in the price range.”
Marked by “open displays and few sales people.”
“The stores do not carry full product lines, may not be departmentalized, and do not deliver products.”
#daollarstores #familydollar
Off-Price Chain Stores & Factory Outlet Stores
Off-price Chain Stores (features brand names):
- T.J. Maxx
- Marshals
Factory Outlet Stores (manufacturer owned):
- Coach
- Nike
- Ann Taylor
- Nautica
Source: https://www.premiumoutlets.com/outlet/philadelphia/about
Membership Clubs (p. 127)
“A membership club (warehouse) straddles the line between wholesaling and retailing. It appeals to price-conscious consumers, who must be members to shop there. Some members are small business owners and employees who pay a membership to buy merchandise at wholesale prices.”
Source: https://www.costcotravel.com/Info/About-Costco-Travel
Flea (and Antique) Markets
Fremont Sunday Market in Seattle
Portland Saturday Market (like a flea market, but more)
Source: http://www.city-data.com/articles/Portland-Saturday-Market-Portland-Oregon.html
Fin.