Chapter 1, Retailing

Retailing: Final activities needed to place merchandise into the hands of consumers, or provide service to consumers. Any firm performs a retailing function IF it sells a product to, or provides a service for the final consumer.

Demands on Retailing, Why is it Undergoing so much change ?

• E-tailing

• Price Competition

• Demongraphic shifts

• Store size

E-tailing

• Just starting, still unknown

• Brick and mortar: physical store retailing

• Cannibalize channel ?

• Other tactics ?

• Shift in power, to consumer
  • Price information
  • More information dissemincation
• Good examples of instore and non-store integration ?
• Showrooming

Price Competition

• Wal Mart
• Positive ?
• Negative ?

Demographic Shifts

• Importance of Generation Y
• Generation X to middle age
• Baby boomers to retirement
• Immigration

Same Store Sales

Market Share

Store Size

• Scrambled merchandize
• Economies of scale
• Category Killers (killed by the internet) and Department Stores (pressure from Boutiques and Mass Merchandisers), coming under pressure

External Environmental Forces Confronting Retail Firms

• Consumer Behavior

• Competition

• Legal and Ethical System

• Technology

• Socioeconomic Environment

Categorizing Retailers

• Census Bureau, NAICS Codes

• Number of outlets
  • Standard stocklist versus optimal stocklist
  • Channel advisor, captain
  • Private label branding
• Margin versus Turnover

• Location

• Size