macy's

MKT 3210 Ch. 1 Introduction to the World of Retailing

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Introduction to the World of Retailing MKT 3210

Retailing Management

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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

• Having the right merchandise at the right price at the right place at the right time

• Retailers • Businesses that sell products or

services, or both, to consumers for their personal or family use

MKT 3210 Ch. 1 Introduction to the World of Retailing

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Examples of Retailers • Example retailer types (Ch. 2)

• Supermarkets: Kroger, Publix, Food Lion

• Supercenters: Wal-Mart, Target • Warehouse clubs: Costco, Sam’s Club • Specialty stores: The Gap, Tiffany,

Sephora • Category specialists: Best Buy, Staples,

Home Depot, Lowe’s • Department stores: Macy’s, JCPenny,

Dillard’s, Kohl’s

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Typical Channel Structure

Raw Material Suppliers

Manufacturers

Wholesalers

Retailer

Customers

Vendors

Vertical integration: (1) backward integration (2) forward integration

MKT 3210 Ch. 1 Introduction to the World of Retailing

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Functions Performed by Retailers • Providing assortments

• Offering a wide selection of brands, designs, sizes, colors, and prices for customers and vendors

• Breaking bulk • Separating cases and pallets into smaller

quantities

• Holding inventory • Storing additional merchandise so that

customers can buy it when they want to

• Providing services • Product display, layaway, salespeople service

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Economic Significance of Retailing • Retail sales

• $5.7 trillion in 2017

• Employment • Retailers are large employers.

• About 10% (over 14M people) of U.S. workforce employed in retailing in 2015

• Additional 15% in supporting activities

• Retail indices • Important indicators for economic

health and trends (e.g., total sales, sales growth by nation, region, and individual stores)

MKT 3210 Ch. 1 Introduction to the World of Retailing

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Overview of the Course The World of Retailing – types, multichannel/

omnichannel, buying behavior

The World of Retailing – types, multichannel/

omnichannel, buying behavior

Retailing Strategy – financial strategy, location,

IS, SCM, CRM

Retailing Strategy – financial strategy, location,

IS, SCM, CRM

HR & Store Management – HR, store managing, store

layout, design, customer service

HR & Store Management – HR, store managing, store

layout, design, customer service

Merchandise Management – merchandise assortments,

buying, pricing, communication mix

Merchandise Management – merchandise assortments,

buying, pricing, communication mix

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Career Opportunities in Retailing • Responsibility

• Starting management trainees are given more responsibilities more quickly than in other industries.

• Career advancement • Many opportunities for rapid advancement due

to a large number of retailers

• Compensation and benefits • Competitive starting salaries and benefits • Opportunities to earn higher income as

promoted

• Ideal candidate • Someone who is a people person, is flexible, is

decisive, has analytical skills, and has stamina