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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,1-,*,Chapter1,IntroductiontotheWorld ofRetailing,WhatisRetailing?,Retailing,aset,of b,usin,essacti,viti,es thataddsvalue to the products and servicessoldtoconsumers for theirpersonalorfamily use.,A,retailer,is abusiness that sellsproducts and/orservices toconsumers for personalor family use.,James Darell/Getty Images,2,ExamplesofRetailers,Retailers:,Kohl,s,Macy,s,Wendys,A,Jiffy Lube,AMCTheaters,AmericanEagl,e Ou,tfitter,Kroger,Firms that are retailersandwholesalersthat sell to otherbusinessaswellasconsumers:,Office Depot,The Home Depot,UnitedAirlines,Bankof America,Costco,TheMcGraw-HillCompanies,Inc./,Andr,ew Resek,photographer,TheMcGraw-HillCompanies,Inc./JohnFlournoy,photographer,3,Retailing isa HighTechIndustry,SellingMerchandiseovertheInternet,Using Internet to managesupplychains,AnalyzePOSdatatotailor assortments to stores,Computersystemsformerchandiseplanning,RyanMcVay/GettyImages,4,Nature of RetailIndustry isChanging,MomandPopStore,To Today,s Retailer,5,WorldsLargestRetailers,6,TheDistributionChannel,7,Manufact,urin,g,Wholesaling and Retailing,VerticalIntegration,firm performsmorethanoneset of activities,Ex:retailer invests inwholesaling ormanufacturing,Backward Integration,retailerperformssomedistribution and manufacturingactivities,Ex:JCPenney sells Arizona jeans(Private Label),Forward Integration,manufacturersundertakeretailingactivities,Ex:RalphLauren operatesitsown stores,8,How Retailers Add Value,BreakBulk,-Buyit inquantities customers want,HoldInventory,-Buyit ata convenient placewhenyou,wantit,Provide Assortment,-Buyotherproducts,at th,e same time,OfferServices,-Seeit beforeyou buy,get credit,layaway,RyanMcVay/Getty Images,9,How Retailers Add Value,The valueof the productand service,increasesas the retailerperformsfunctions,.,Bicycle isdevelopedat manufacturer,Bicycle isdevelopedinseveral styles,Bicycle isoffered in convenient locations inquantities ofone,Bicycle isfeaturedon floor display,Bicycle can bebought oncredit orput on layaway,10,Social andEconomicSignificance of Retailing,CommunitySupport,Over$3.4trillion in annual U.S.sales,greater than medicalcare,housing,recreation combined,Employs 27million people,21%of non-agricultural US workforce,Managementtrainingopportunities,Entrepreneurialopportunities,11,Retailingis Big Part ofEconomy,Services(45.8%,),Manufacturing(11.2%),Retail(21.8%),Government(16.6%),Other5.6%,12,Comparisonof Distribution ChannelsAcross the Globe,13,Retail Mix,Retail Strategy,Customer Service,Location,Merchandise,Assortment,Pricing,Communication Mix,StoreDesign,and Display,14,Macys Retail Mix,Retail Strategy,Customer Service,Location,Merchandise,Assortment,Pricing,Communication Mix,StoreDesign,and Display,15,Macys Retail Mix,Enclosed Malls,Customer Service,Merchandise,Assortment,Pricing,Communication Mix,Store Display,And Design,Location Strategy,16,Macys Retail Mix,Location,Pricing,Communication Mix,StoreDesign,and Display,Customer Service,ManyItemsin Apparel,and Soft Home,AssortmentStrategy,17,Macys Retail Mix,Location,Communication M,ix,StoreDesign,and Display,Customer Service,Merchandise Assortment,Moderate with,Frequent Sales,Pricing Strategy,18,Macys Retail Mix,Communication Mix,TV,Newspa,per A,ds and,Special Events,StoreDesign,And Display,Merchandise Assortment,Pricing,Customer Service,Location,19,Macy,sRetail,Mi,x,St,oreDesignandDisplay,RacetrackwithDisplays,CustomerService,Location,MerchandiseAssortments,Pricing,CommunicationMix,20,Macy,sRetailMix,CustomerService,Modest,Location,MerchandiseAssortment,Pricing,CommunicationMix,StoreDesignandDisplay,21,Target,sRetailMix,RetailStrategy,CustomerService,Location,Merchandise,Assortment,Pricing,Communicat,io,nMi,x,StoreDesign,andDisplay,22,Target,sRetailMix,Free-sta,nd,ingStores,Customer Service,Merchandise,Assortment,Pricing,Communication Mix,Store Display,And Design,LocationStrategy,23,Target,sRetailMix,Location,Pricing,CommunicationMix,StoreDesign,andDisplay,CustomerService,LargeNumberofCategories,PrivateLabels,FewItemsinEachCategory,AssortmentStrategy,24,Ta,rg,et,s,Ret,ailMix,Location,CommunicationMix,StoreDe,si,gn,andDisplay,CustomerService,MerchandiseAssortment,LowtoModest,PricingStrategy,25,Target,sRetailMix,CommunicationMix,TVandNewspaper,InsertAds,StoreDesign,AndDisplay,CustomerService,Location,MerchandiseAssortment,Pricing,26,Target,s,RetailMix,Store,De,signandDisplay,Colorful,wideaislesdisplays,forproductswithagridlayout,CustomerService,Loca,ti,on,MerchandiseAssortments,Pricing,Communication,M,ix,27,Target,sRetailMix,CustomerService,L,imited,Location,MerchandiseAss,Pricing,CommunicationMix,StoreDesignandDisplay,28,JCPenney,sStrategicEvoluti,o,n,MainStreetprivat,e,la,b,elsoftgoodsret,a,iler,Changes in environment-increaseddisposable income,growth of suburbs,interstatehighwayprogram,Emulate Sears in enclosed suburban malls,Focusonsoft goods-dropautomotive,sportinggoods,hardware,Develop catalog,
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