retailing
includes all the activities in selling goods or services directly to final consumers for personal, nonbusiness use.
retailer/retail store
any business enterprise whose sales volume comes primarily from retailing.
types of retailers
- store retailers
- non-store retailers
- retail organisations
store retailers’ levels of service
- self-service
- self-selection
- limited service
- full service
self-selection
customers find their own goods, but they can ask for help.
limited service
carry more shopping goods and services such as credit and merchandise return privileges.
full service
salespeople are ready to assist in every phase of the ‘locate-compare-select’ process.
major types of store retailers
- specialty store (narrow product line)
- department store (several product lines)
- supermarket (self-service store)
- convenience store (limited line high-turnover convenience and takeout products)
- drug store
- discount store (low price, low margin, high volume)
- extreme value or hard-discount store (more restricted merchandise mix, even lower prices)
- off-price retailer (leftover goods, irregular merchandise. factory outlets are independent off-price retailers)
- superstore (category killer: deep assortment in one category or hypermarket: eg. carrefour)
- catalogue showroom (high-markup, fast-moving, brand-name goods)
non-store retailing categories
- direct marketing
- direct selling/multilevel selling/network marketing
- automatic vending
- buying service
direct marketing
including telemarketing, direct mail, catalog marketing, and online shopping.
direct selling/multilevel selling/network marketing
door-to-door selling or through at-home sales parties.
automatic vending
offers a variety of merchandise, including impulse goods such as soft drinks.
buying service
a store-less retailer serving a specific clientele - usually employees of large organisations - who are entitled to discounts in return for membership.
corporate retailing
to achieve economies of scale, greater purchasing power, wider brand recognition, and better-trained employees than independent stores can usually gain alone.
major types of corporate retail organisations
- corporate chain store
- voluntary chain
- retailer cooperative
- consumer cooperative
- franchise organisation
- merchandising conglomerate
voluntary chain
a wholesaler-sponsored group of independent retailers engaged in bulk buying and common merchandising.
retailer cooperative
independent retailers using a central buying organisation and joint promotion efforts.
consumer cooperative
a retail firm owned by its customers. members contribute money to open their own store, vote on its policies, elect a group to manage it, and receive dividends.
merchandising conglomerate
a corporation that combines several diversified retailing lines and forms under central ownership, with some integration of distribution and management.
corporate chain store
two or more outlets owned and controlled, employing central buying and merchandising, and selling similar lines of merchandise.
developments in the retail market
- net retail forms and combinations
- growth of giant retailers
- growth of intertype competition
- emergence of fast retailing
- decline of middle-market retailers
shopper marketing
the way manufacturers and retailers use stocking, displays, and promotions to influence customers for a product.
direct product profitability (DPP)
used by stores to measure a product’s handling costs (receiving, moving to storage, paperwork, selecting, checking, etc.) from the time it reaches the warehouse until a customer buys it in the retail store.
destination categories
may play a particularly important role because they have the greatest impact on where households choose to shop and how they view a particular retailer.
