Haagen-Dazs ice-cream project

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

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Types of Retailers

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Notes to Accompany Slide:

Self-service retailers serve customers who are willing to perform their own “locate-compare-select” process to save time or money. Self-service is the basis of all discount operations and is typically used by retailers selling convenience goods (such as supermarkets) and nationally branded, fast-moving shopping goods (such as Wal-Mart or Kohl’s).

Limited-service retailers, such as Sears or JC Penney, provide more sales assistance because they carry more shopping goods about which customers need information. Their increased operating costs result in higher prices.

Full-service retailers, such as high-end specialty stores (for example, Tiffany or Williams-Sonoma) and first-class department stores (such as Nordstrom or Neiman Marcus) employ salespeople to assist customers in every phase of the shopping

Specialty stores carry narrow product lines with deep assortments within those lines.

Department stores carry a wide variety of product lines.

Supermarkets are the most frequently shopped type of retail store. Today, however, they are facing slow sales growth because of slower population growth and an increase in competition from discount supercenters (Wal-Mart) on the one hand and upscale specialty food stores (Whole Foods Market, Trader Joe’s) on the other.

Convenience stores are small stores that carry a limited line of high-turnover convenience goods.

Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services. Wal-Mart, Target, Meijer, and other discount retailers offer supercenters-very large combination food and discount stores.

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Types of Retailers (continued)

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Notes to Accompany Slide:

Discount store: A retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume.

Off-price retailer: A retailer that buys at less-than-regular wholesale prices and sells at less than retail. Examples are factory outlets, independents, and warehouse clubs.

Independent off-price retailer: An off-price retailer that is either independently owned and run or is a division of a larger retail corporation.

Factory outlet: An off-price retailing operation that is owned and operated by a manufacturer and that normally carries the manufacturer’s surplus, discontinued, or irregular goods.

Warehouse club: An off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and a hodgepodge of other goods at deep discounts to members who pay annual membership fees.

Chain stores: Two or more outlets that are commonly owned and controlled.

Franchise: A contractual association between a manufacturer, wholesaler, or service organization (a franchisor) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system.

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Retailer Marketing Decisions