Retail

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"Retail stores" redirects here. For the comic strip by Norm Feuti, see Retail (comic strip).
Retail is the process of selling consumer goods or services to customers through
multiple channels of distribution to earn a profit. Retailers satisfy demand identified through
a supply chain. The term "retailer" is typically applied where a service provider fills the small
orders of a large number of individuals, who are end-users, rather than large orders of a small
number of wholesale, corporate or government clientele. Shopping generally refers to the act
of buying products. Sometimes this is done to obtain final goods, including necessities such as
food and clothing; sometimes it takes place as a recreational activity. Recreational shopping
often involves window shopping and browsing: it does not always result in a purchase.
Retail markets and shops have a very ancient history, dating back to antiquity. Some of the
earliest retailers were itinerant peddlers. Over the centuries, retail shops were transformed from
little more than "rude booths" to the sophisticated shopping malls of the modern era.
Most modern retailers typically make a variety of strategic level decisions including the type
of store, the market to be served, the optimal product assortment, customer service, supporting
services and the store's overall market positioning. Once the strategic retail plan is in place,
retailers devise the retail mix which includes product, price, place, promotion, personnel and
presentation. In the digital age, an increasing number of retailers are seeking to reach broader
markets by selling through multiple channels, including both bricks and mortar and online
retailing. Digital technologies are also changing the way that consumers pay for goods and
services. Retailing support services may also include the provision of credit, delivery services,
advisory services, stylist services and a range of other supporting services.
Retail shops occur in a diverse range of types and in many different contexts – from strip
shopping centres in residential streets through to large, indoor shopping malls. Shopping
streets may restrict traffic to pedestrians only. Sometimes a shopping street has a partial or
full roof to create a more comfortable shopping environment – protecting customers from various
types of weather conditions such as extreme temperatures, winds or precipitation. Forms of non-
shop retailing include online retailing (a type of electronic-commerce used for business-to-
consumer (B2C) transactions) and mail order.

Contents

 1Etymology
 2Definition and explanation
 3History
o 3.1Retailing in antiquity
o 3.2Retailing in Medieval Europe
o 3.3Retailing in the 17th, 18th and 19th centuries
o 3.4Retailing in the modern era
 4Retail strategy
 5The retail marketing mix
o 5.1Product
 5.1.1Product assortment
 5.1.2Customer service and supporting services
 5.1.2.1Types of customer service
o 5.2Place
 5.2.1Location
 5.2.1.1Macro factors
  5.2.1.2Micro factors
 5.2.2Channels
o 5.3Pricing strategy and tactics
 5.3.1Pricing tactics
o 5.4Personnel and staffing
 5.4.1Selling and sales techniques
o 5.5Promotion
o 5.6Presentation
 5.6.1Designing retail spaces
 6Shopper profiles
 7Retail format: types of retail outlet
o 7.1Retail type by product
o 7.2Retail types by marketing strategy
o 7.3Other retail types
 8Challenges
 9Global top ten retailers
 10Competition
o 10.1Mergers and acquisitions
 11Statistics for national retail sales
o 11.1United States
o 11.2Central Europe
o 11.3World
 12Consolidation
 13Gallery
 14See also
 15References
 16Further reading
 17External links

Etymology[edit]
Retail comes from the Old French word tailler, which means "to cut off, clip, pare, divide" in terms
of tailoring (1365). It was first recorded as a noun with the meaning of a "sale in small quantities"
in 1433 (from the Middle French retail, "piece cut off, shred, scrap, paring").[1] As in the French,
the word, retail, in both Dutch and German, also refers to the sale of small quantities of items.

Definition and explanation[edit]

Retail refers to the activity of selling goods or services directly to consumers or end-
users.[2] Some retailers may sell to business customers, and such sales are termed non-retail
activity. In some jurisdictions or regions, legal definitions of retail specify that at least 80 percent
of sales activity must be to end-users.[3]
Retailing often occurs in retail stores or service establishments, but may also occur through
direct selling such as through vending machines, door-to-door sales or electronic
channels.[4] Although the idea of retail is often associated with the purchase of goods, the term
may be applied to service-providers that sell to consumers. Retail service providers include retail
banking, tourism, insurance, private healthcare, private education, private security firms, legal
firms, publishers, public transport and others. For example, a tourism provider might have a retail
division that books travel and accommodation for consumers plus a wholesale division that
purchases blocks of accommodation, hospitality, transport and sightseeing which are
subsequently packaged into a holiday tour for sale to retail travel agents.
Some retailers badge their stores as "wholesale outlets" offering "wholesale prices." While this
practice may encourage consumers to imagine that they have access to lower prices, while being
prepared to trade-off reduced prices for cramped in-store environments, in a strict legal sense, a
store that sells the majority of its merchandise direct to consumers, is defined as a retailer rather
than a wholesaler. Different jurisdictions set parameters for the ratio of consumer to business
sales that define a retail business.

History[edit]
See also: History of merchants; History of the market
place ; History of marketing
Retailing in antiquity[edit]

Marketplace at Trajan's Forum, the earliest known example of

permanent retail shopfronts

Retail markets have existed since ancient times. Archaeological

evidence for trade, probably involving barter systems, dates
back more than 10,000 years. As civilizations grew, barter was
replaced with retail trade involving coinage. Selling and buying is
thought to have emerged in Asia Minor (modern Turkey) in
around the 7th millennium BCE.[5] Gharipour points to evidence
of primitive shops and trade centres in Sialk Hills in Kashan
(6000 BCE), Catalk Huyuk in modern-day Turkey (7,500–5,700
BCE), Jericho (2600 BCE) and Susa (4000 BCE).[6] Open air,
public markets were known in ancient Babylonia, Assyria,
Phoenicia and Egypt. These markets typically occupied a place
in the town's centre. Surrounding the market, skilled artisans,
such as metal-workers and leather workers, occupied
permanent premises in alleys that led to the open market-place.
These artisans may have sold wares directly from their
premises, but also prepared goods for sale on market
days.[7] In ancient Greece markets operated within the agora, an
open space where, on market days, goods were displayed on
mats or temporary stalls.[8] In ancient Rome, trade took place in
the forum.[9] Rome had two forums; the Forum
Romanum and Trajan's Forum. The latter was a vast expanse,
comprising multiple buildings with shops on four levels.[10] The
Roman forum was arguably the earliest example of a permanent
retail shop-front.[11] In antiquity, exchange involved direct
selling via merchants or peddlers and bartering systems were
commonplace.[12]
The Phoenicians, noted for their seafaring skills, plied their ships
across the Mediterranean, becoming a major trading power by
the 9th century BCE. The Phoenicians imported and exported
wood, textiles, glass and produce such as wine, oil, dried fruit
and nuts. Their trading skills necessitated a network of colonies
along the Mediterranean coast, stretching from modern day
Crete through to Tangiers and onto Sardinia[13] The Phoenicians
not only traded in tangible goods, but were also instrumental in
transporting culture. The Phoenician's extensive trade networks
necessitated considerable book-keeping and correspondence.
In around 1500 BCE, the Phoenicians developed a consonantal
alphabet which was much easier to learn that the complex
scripts used in ancient Egypt and Mesopotamia. Phoenician
traders and merchants were largely responsible for spreading
their alphabet around the region.[14] Phoenician inscriptions have
been found in archaeological sites at a number of former
Phoenician cities and colonies around the Mediterranean, such
as Byblos (in present-day Lebanon) and Carthage in North
Africa.[15]

Grand Bazaar, Istanbul (interior). Established in 1455, it is thought to

be the oldest continuously operating covered market

In the Graeco-Roman world, the market primarily served the

local peasantry. Local producers, who were generally poor,
would sell small surpluses from their individual farming activities,
purchase minor farm equipment and also buy a few luxuries for
their homes. Major producers such as the great estates were
sufficiently attractive for merchants to call directly at their farm-
gates, obviating the producers' need to attend local markets.
The very wealthy landowners managed their own distribution,
which may have involved exporting and importing. The nature of
export markets in antiquity is well documented in ancient
sources and archaeological case studies.[16] The Romans
preferred to purchase goods from specific places: oysters from
Londinium, cinnamon from a specific mountain in Arabia, and
these place-based preferences stimulated trade throughout
Europe and the middle East.[17] Markets were also important
centres of social life.[18]
The rise of retailing and marketing in England and Europe has
been extensively studied, but less is known about developments
elsewhere.[19] Nevertheless, recent research suggests that China
exhibited a rich history of early retail systems.[20] From as early
as 200 BCE, Chinese packaging and branding was used to
signal family, place names and product quality, and the use of
government imposed product branding was used between 600
and 900 CE.[21] Eckhart and Bengtsson have argued that during
the Song Dynasty (960–1127), Chinese society developed a
consumerist culture, where a high level of consumption was
attainable for a wide variety of ordinary consumers rather than
just the elite.[22] The rise of a consumer culture led to the
commercial investment in carefully managed company
image, retail signage, symbolic brands, trademark
protection and sophisticated brand concepts.[23]
Retailing in Medieval Europe[edit]
 The Row, Chester, Cheshire, England, c. 1895; a unique medieval
shopping arcade

In Medieval England and Europe, relatively few permanent

shops were to be found; instead customers walked into the
tradesman's workshops where they discussed purchasing
options directly with tradesmen. In 13th century London,
mercers and haberdashers were known to exist and grocers
sold "miscellaneous small wares as well as spices and
medicines" but fish and other perishables were sold through
markets, costermongers, hucksters, peddlers or other type of
itinerant vendor.[24]
In the more populous cities, a small number of shops were
beginning to emerge by the 13th century. In Chester, a medieval
covered shopping arcade represented a major innovation that
attracted shoppers from many miles around. Known as "The
Rows" this medieval shopping arcade is believed to be the first
of its kind in Europe.[25] Fragments of Chester's Medieval Row,
which is believed to date to the mid-13th century, can still be
found in Cheshire.[26] In the 13th or 14th century, another arcade
with several shops was recorded at Drapery Row in
Winchester.[27] The emergence of street names such as Drapery
Row, Mercer's Lane and Ironmonger Lane in the medieval
period suggests that permanent shops were becoming more
commonplace.

A typical 17th century shop, with customers being served through an

opening onto the street

Medieval shops had little in common with their modern

equivalent. As late as the 16th century, London's shops were
described as little more than "rude booths" and their owners
"bawled as loudly as the itinerants."[28] Shopfronts typically had a
front door with two wider openings on either side, each covered
with shutters. The shutters were designed to open so that the
top portion formed a canopy while the bottom was fitted with
legs so that it could serve as a shopboard.[29] Cox and Dannehl
suggest that the Medieval shopper's experience was very
different. Glazed windows, which were rare during the medieval
period, and did not become commonplace until the eighteenth
century, meant that shop interiors were dark places. Outside the
markets, goods were rarely out on display and the service
counter was unknown. Shoppers had relatively few opportunities
to inspect the merchandise prior to consumption. Many stores
had openings onto the street from which they served
customers.[30]
Outside the major cities, most consumable purchases were
made through markets or fairs. Markets were held daily in the
more populous towns and cities or weekly in the more sparsely
populated rural districts. Markets sold fresh produce; fruit,
vegetables, baked goods, meat, poultry, fish and some ready to
eat foodstuffs; while fairs operated on a periodic cycle and were
almost always associated with a religious festival.[31] Fairs sold
non-perishables such as farm tools,
homewares, furniture, rugs and ceramics. Market towns dotted
the medieval European landscape while itinerant vendors
supplied less populated areas or hard-to-reach districts.
Peddlers and other itinerant vendors operated alongside other
types of retail for centuries. The political philosopher, John
Stuart Mill compared the convenience of markets/fairs to that of
the itinerant peddlers:
"The contrivance of fairs and markets was early had
recourse to, where consumers and producers might
periodically meet, without any intermediate agency; and this
plan answers tolerably well for many articles, especially
agricultural produce … but were inconvenient to buyers who
have other occupations, and do not live in the immediate
vicinity … and the wants of the consumers must either be
provided for so long beforehand, or must remain so long
unsupplied, that even before the resources of society
admitted of the establishment of shops, the supply of these
wants fell universally into the hands of itinerant dealers: the
pedlar, who might appear once a month, being preferred to
the fair, which only returned once or twice a year."[32]

Fruit and Vegetable Market, Painting by Arnout de Muyser. c.

1590

Blintiff has investigated the early Medieval networks of

market towns across Europe, and suggests that by the 12th
century there was an upsurge in the number of market
towns and the emergence of merchant circuits as traders
bulked up surpluses from smaller regional, different day
markets and resold them at the larger centralised market
towns.[33] Market-places appear to have emerged
independently outside Europe. The Grand
Bazaar in Istanbul is often cited as the world's oldest
continuously-operating market; its construction began in
1455. The Spanish conquistadors wrote glowingly of
markets in the Americas. In the 15th century
the Mexica (Aztec) market of Tlatelolcowas the largest in all
the Americas.[34]
English market towns were regulated from a relatively early
period. The English monarchs awarded a charter to local
Lords to create markets and fairs for a town or village. This
charter would grant the lords the right to take tolls and also
afford some protection from rival markets. For example,
once a chartered market was granted for specific market
days, a nearby rival market could not open on the same
days.[35] Across the boroughs of England, a network of
chartered markets sprang up between the 12th and 16th
centuries, giving consumers reasonable choice in the
markets they preferred to patronise.[36] A study on the
purchasing habits of the monks and other individuals in
medieval England, suggests that consumers of the period
were relatively discerning. Purchase decisions were based
on purchase criteria such as consumers' perceptions of the
range, quality, and price of goods. This informed decisions
about where to make their purchases and which markets
were superior.[37] Today, traders and showmen jealously
guard the reputation of these historic market charters.
Braudel and Reynold have made a systematic study of
these European market towns between the thirteenth and
fifteenth century. Their investigation shows that in regional
districts markets were held once or twice a week while daily
markets were common in larger cities. Gradually over time,
permanent shops with regular trading days began to
supplant the periodic markets, while peddlers filled in the
gaps in distribution. The physical market was characterised
by transactional exchange and the economy was
characterised by local trading. Braudel reports that, in 1600,
goods travelled relatively short distances – grain 5–10 miles;
cattle 40–70 miles; wool and woollen cloth 20–40 miles.
Following the European age of discovery, goods were
imported from afar – calico cloth from India, porcelain, silk
and tea from China, spices from India and South-East Asia
and tobacco, sugar, rum and coffee from the New World.[38]
English essayist, Joseph Addison, writing in 1711, described
the exotic origin of produce available to English society in
the following terms:
"Our Ships are laden with the Harvest of every Climate: Our
Tables are stored with Spices, and Oils, and Wines: Our
Rooms are filled with Pyramids of China, and adorned with
the Workmanship of Japan: Our Morning's Draught comes to
us from the remotest Corners of the Earth: We repair our
Bodies by the Drugs of America, and repose ourselves
under Indian Canopies. My Friend Sir ANDREW calls the
Vineyards of France our Gardens; the Spice-Islands our Hot-
beds; the Persians our Silk-Weavers, and the Chinese our
Potters. Nature indeed furnishes us with the bare
Necessaries of Life, but Traffick gives us greater Variety of
what is Useful, and at the same time supplies us with every
thing that is Convenient and Ornamental."[39]
Luca Clerici has made a detailed study of Vicenza’s
food market during the sixteenth century. He found that
there were many different types of reseller operating out
of the markets. For example, in the dairy trade, cheese
and butter was sold by the members of two craft guilds
(i.e., cheesemongers who were shopkeepers) and that
of the so-called ‘resellers’ (hucksters selling a wide
range of foodstuffs), and by other sellers who were not
enrolled in any guild. Cheesemongers’ shops were
situated at the town hall and were very lucrative.
Resellers and direct sellers increased the number of
sellers, thus increasing competition, to the benefit of
consumers. Direct sellers, who brought produce from
the surrounding countryside, sold their wares through
the central market place and priced their goods at
considerably lower rates than cheesemongers.[40]
Retailing in the 17th, 18th and 19th
centuries[edit]

The retail service counter was an innovation of the eighteenth

century

By the 17th century, permanent shops with more regular

trading hours were beginning to supplant markets and
fairs as the main retail outlet. Provincial shopkeepers
were active in almost every English market town. These
shopkeepers sold general merchandise, much like a
contemporary convenience store or a general store. For
example, William Allen, a mercer in Tamworth who died
in 1604, sold spices alongside furs and
fabrics.[41] William Stout of Lancaster retailed sugar,
tobacco, nails and prunes at both his shop and at the
central markets. His autobiography reveals that he
spent most of his time preparing products for sale at the
central market, which brought an influx of customers
into town.[42]
As the number of shops grew, they underwent a
transformation. The trappings of a modern shop, which
had been entirely absent from the sixteenth and early
seventeenth century store, gradually made way for store
interiors and shopfronts that are more familiar to
modern shoppers. Prior to the eighteenth century, the
typical retail store had no counter, display cases, chairs,
mirrors, changing-rooms, etc. However, the opportunity
for the customer to browse merchandise, touch and feel
products began to be available, with retail innovations
from the late 17th and early 18th centuries.[43] Glazing
was widely used from the early 18th-century. English
commentators pointed to the speed at which glazing
was installed, Daniel Defoe, writing in 1726, noted that
"Never was there such painting and guildings, such
sashings and looking-glasses as the shopkeepers as
there is now."[44]

Josiah Wedgewood was one of the English entrepreneurs

who held expansive displays in his private home or in
rented premises

Outside the major metropolitan cities, few stores could

afford to serve one type of clientele exclusively.
However, gradually retail shops introduced innovations
that would allow them to separate wealthier customers
from the "riff raff." One technique was to have a window
opening out onto the street from which customers could
be served. This allowed the sale of goods to the
common people, without encouraging them to come
inside. Another solution, that came into vogue from the
late sixteenth century was to invite favoured customers
into a back-room of the store, where goods were
permanently on display. Yet another technique that
emerged around the same time was to hold a showcase
of goods in the shopkeeper's private home for the
benefit of wealthier clients. Samuel Pepys, for example,
writing in 1660, describes being invited to the home of a
retailer to view a wooden jack.[45] The eighteenth century
English entrepreneurs, Josiah
Wedgewood and Matthew Boulton, both staged
expansive showcases of their wares in their private
residences or in rented halls.[46]
Savitt has argued that by the eighteenth century,
American merchants, who had been operating as
importers and exporters, began to specialise in either
wholesale or retail roles. They tended not to specialise
in particular types of merchandise, often trading as
general merchants, selling a diverse range of product
types. These merchants were concentrated in the larger
cities. They often provided high levels of credit financing
for retail transactions.[47]

Galeries de bois at au Palais-Royal, one of the earliest

shopping arcades in Europe

By the late eighteenth century, grand shopping arcades

began to emerge across Europe and in the Antipodes. A
shopping arcade refers to a multiple-vendor space,
operating under a covered roof. Typically, the roof was
constructed of glass to allow for natural light and to
reduce the need for candles or electric lighting. Some of
the earliest examples of shopping arcade appeared in
Paris, due its lack of pavement for pedestrians.
Retailers, eager to attract window shoppers by providing
a shopping environment away from the filthy streets,
began to construct rudimentary arcades. Opening in
1771, the Coliseé, situated on the Champs Elysee,
consisted of three arcades, each with ten shops, all
running off a central ballroom. For Parisians, the
location was seen as too remote and the arcade closed
within two years of opening.[29] Inspired by the souks of
Arabia, the Galerie de Bois, a series of wooden shops
linked the ends of the Palais Royal, opened in 1786 and
became a central part of Parisian social life.[48]
The architect, Bertrand Lemoine, described the period,
1786 to 1935, as l’Ère des passages couverts (the
Arcade Era).[49] In the European capitals, shopping
arcades spread across the continent, reaching their
heyday in the early 19th century: the Palais Royal in
Paris (opened in 1784); Passage de Feydeau in Paris
(opened in 1791) and Passage du Claire in
1799.[29] London's Piccadilly Arcade (opened in 1810);
Paris's Passage Colbert (1826) and Milan's Galleria
Vittorio Emanuele (1878).[50] Designed to attract the
genteel middle class, arcade retailers sold luxury goods
at relatively high prices. However, prices were never a
deterrent, as these new arcades came to be the place
to shop and to be seen. Arcades offered shoppers the
promise of an enclosed space away from the chaos that
characterised the noisy, dirty streets; a warm, dry space
away from the elements, and a safe-haven where
people could socialise and spend their leisure time. As
thousands of glass covered arcades spread across
Europe, they became grander and more ornately
decorated. By the mid nineteenth century, they had
become prominent centres of fashion and social life.
 Promenading in these arcades became a popular
nineteenth century pass-time for the emerging middle
classes. The Illustrated Guide to Paris of 1852
summarized the appeal of arcades in the following
description:

The Piccadilly entrance to the Burlington Arcade in 1827–

28, shortly after its opening

"In speaking of the inner boulevards, we have made mention

again and again of the arcades which open onto them.
These arcades, a recent invention of industrial luxury, are
glass-roofed, marble-paneled corridors extending through
whole blocks of buildings, whose owners have joined
together for such enterprises. Lining both sides of these
corridors, which get their light from above, are the most
elegant shops, so that the arcade is a city, a world in
miniature, in which customers will find everything they
need."[51]
The Palais-Royal, which opened to Parisians in
1784 and became one of the most important
marketplaces in Paris, is generally regarded as the
earliest example in the grand shopping
arcades.[52] The Palais-Royal was a complex of
gardens, shops and entertainment venues situated
on the external perimeter of the grounds, under the
original colonnades. The area boasted some 145
boutiques, cafés, salons, hair salons, bookshops,
museums, and numerous refreshment kiosks as
well as two theatres. The retail outlets specialised in
luxury goods such as fine jewellery, furs, paintings
and furniture designed to appeal to the wealthy
elite. Retailers operating out of the Palais complex
were among the first in Europe to abandon the
system of bartering, and adopt fixed-prices thereby
sparing their clientele the hassle of bartering. Stores
were fitted with long glass exterior windows which
allowed the emerging middle-classes to window
shop and indulge in fantasies, even when they may
not have been able to afford the high retail prices.
Thus, the Palais-Royal became one of the first
examples of a new style of shopping arcade,
frequented by both the aristocracy and the middle
classes. It developed a reputation as being a site of
sophisticated conversation, revolving around the
salons, cafés, and bookshops, but also became a
place frequented by off-duty soldiers and was a
favourite haunt of prostitutes, many of whom rented
apartments in the building.[53] London's Burlington
Arcade, which opened in 1819, positioned itself as
an elegant and exclusive venue from the
outset.[54] Other notable nineteenth century grand
arcades include the Galeries Royales Saint-
Hubert in Brussels which was inaugurated in 1847,
Istanbul's Çiçek Pasajı opened in 1870 and
Milan's Galleria Vittorio Emanuele II first opened in
1877. Shopping arcades were the precursor to the
modern shopping mall.

The original Toad Lane Store, Rochdale, Manchester;

one of Britain's earliest co-operative stores

While the arcades were the province of the

bourgeoisie, a new type of retail venture emerged to
serve the needs of the working poor. John Stuart
Mill wrote about the rise of the co-operative retail
store, which he witnessed first-hand in the mid-
nineteenth century. Stuart Mill locates these co-
operative stores within a broader co-operative
movement which was prominent in the industrial city
of Manchester and in the counties of Yorkshire and
Lancashire. He documents one of the early co-
operative retail stores in Rochdale in Manchester,
England, "In 1853, the Store purchased for £745, a
warehouse (freehold) on the opposite side of the
street, where they keep and retail their stores of
flour, butcher's meat, potatoes, and kindred
articles." Stuart Mill also quoted a contemporary
commentator who wrote of the benefits of the co-
operative store:
Buyer and seller meet as friends; there is no
overreaching on one side, and no suspicion on the
other... These crowds of humble working men, who
never knew before when they put good food in their
mouths, whose every dinner was adulterated,
whose shoes let in the water a month too soon,
whose waistcoats shone with devil's dust, and
whose wives wore calico that would not wash, now
buy in the markets like millionaires, and as far as
pureness of food goes, live like lords.[55]

Retailing in the modern era[edit]

 Department stores, such as Le Bon Marché of
France, appeared from the mid nineteenth century

The modern era of retailing is defined as the period

from the industrial revolution to the 21st-
century.[56] In major cities, the department
storeemerged in the mid to late 19th-century, and
permanently reshaped shopping habits, and
redefined concepts of service and luxury. The term,
"department store" originated in America. In 19th
century England, these stores were known as
emporia or warehouse shops.[57] In London, the first
department stores appeared in Oxford Street and
Regent Street, where they formed part of a distinctly
modern shopping precinct.[58]When London
draper, William Whiteley attempted to transform his
Bayswater drapery store into a department store by
adding a meat and vegetable department and an
Oriental Department in around 1875, he met with
extreme resistance from other shop-keepers, who
resented that he was encroaching on their territory
and poaching their customers.[59] Before long,
however, major department stores began to open
across the US, Britain and Europe from the mid-
nineteenth century including; Harrod's of London in
1834; Kendall's in Manchester in 1836; Selfridges of
London in 1909; Macy's of New York in
1858; Bloomingdale's in 1861; Sak's in 1867; J.C.
Penney in 1902; Le Bon Marché of France in 1852
and Galeries Lafayette of France in 1905.[60] Other
twentieth century innovations in retailing included
chain stores, mail-order, multi-level
marketing (pyramid selling or network
marketing, c. 1920s), party plans (c. 1930s)
and B2C e-commerce.[61]
Many of the early department stores were more
than just a retail emporium; rather they were venues
where shoppers could spend their leisure time and
be entertained. Some department stores offered
reading rooms, art galleries and concerts. Most
department stores had tea-rooms or dining rooms
and offered treatment areas where ladies could
indulge in a manicure. The fashion show, which
originated in the US in around 1907, became a
staple feature event for many department stores
and celebrity appearances were also used to great
effect. Themed events featured wares from foreign
shores, exposing shoppers to the exotic cultures of
the Orient and Middle-East.[62]

In 1963, Carrefour opened the first hypermarket in St

Genevieve-de-Bois, near Paris,

During this period, retailers worked to develop

modern retail marketing practices. Pioneering
merchants who contributed to modern retail
marketing and management methods include: A. T.
Stewart, Potter Palmer, John
Wanamaker, Montgomery Ward, Marshall
Field, Richard Warren Sears, Rowland Macy, J.C.
Penney, Fred Lazarus, brothers Edward and
William Filene and Sam Walton.[63]
Retail, using mail order, came of age during the
mid-19th century. Although catalogue sales had
been used since the 15th century, this method of
retailing was confined to a few industries such as
the sale of books and seeds. However,
improvements in transport and postal services, led
several entrepreneurs on either side of the Atlantic
to experiment with catalogue sales. In 1861, Welsh
draper Pryce Pryce-Jones sent catalogues to clients
who could place orders for flannel clothing which
was then despatched by post. This enabled Pryce-
Jones to extend his client base across Europe.[64] A
decade later, the US retailer, Montgomery Ward
also devised a catalogue sales and mail-order
system. His first catalogue which was issued in
August 1872 consisted of an 8 in × 12 in (20 cm ×
30 cm) single-sheet price list, listing 163 items for
sale with ordering instructions for which Ward had
written the copy. He also devised the catch-phrase
"satisfaction guaranteed or your money back" which
was implemented in 1875.[65] By the 1890s, Sears
and Roebuck were also using mail order with great
success.
Edward Filene, a proponent of the scientific
approach to retail management, developed the
concept of the automatic bargain Basement.
Although Filene's basement was not the first
‘bargain basement’ in the U.S., the principles of
‘automatic mark-downs’ generated excitement and
proved very profitable. Under Filene's plan,
merchandise had to be sold within 30 days or it was
marked down; after a further 12 days, the
merchandise was further reduced by 25% and if still
unsold after another 18 days, a further markdown of
25% was applied. If the merchandise remained
unsold after two months, it was given to
charity.[66] Filene was a pioneer in employee
relations. He instituted a profit sharing program, a
minimum wage for women, a 40-hour work week,
health clinics and paid vacations. He also played an
important role in encouraging the Filene
Cooperative Association, "perhaps the earliest
American company union". Through this channel he
engaged constructively with his employees in
collective bargaining and arbitration processes.[67]

Shopping mall in Warsaw, Poland

In the post-war period, an American architect, Victor

Gruen developed a concept for a shopping mall; a
planned, self-contained shopping complex complete
with an indoor plaza, statues, planting schemes,
piped music, and car-parking. Gruen's vision was to
create a shopping atmosphere where people felt so
comfortable, they would spend more time in the
environment, thereby enhancing opportunities for
purchasing. The first of these malls opened
at Northland Mall near Detroit in 1954. He went on
to design some 50 such malls. Due to the success
of the mall concept, Gruen was described as "the
most influential architect of the twentieth century by
a journalist in the New Yorker."[68]
Throughout the twentieth century, a trend towards
larger store footprints became discernible. The
average size of a U.S. supermarket grew from
31,000 square feet (2,900 m2) square feet in 1991
to 44,000 square feet (4,100 m2) square feet in
2000. In 1963, Carrefour opened the
first hypermarket in St Genevieve-de-Bois, near
Paris, France.[69] By the end of the twentieth century,
stores were using labels such as "mega-stores" and
"warehouse" stores to reflect their growing size. In
Australia, for example, the popular hardware chain,
Bunnings has shifted from smaller "home centres"
(retail floor space under 5,000 square metres
(54,000 sq ft)) to "warehouse" stores (retail floor
space between 5,000 square metres (54,000 sq ft)
and 21,000 square metres (230,000 sq ft)) in order
to accommodate a wider range of goods and in
response to population growth and changing
consumer preferences.[70] The upward trend of
increasing retail space was not consistent across
nations, and led in the early 21st century to a 2-fold
difference in square footage per capita between the
United States and Europe.[71]
As the 21st century takes shape, some indications
suggest that large retail stores have come under
increasing pressure from online sales models and
that reductions in store size are evident.[72] Under
such competition and other issues such as business
debt,[73] there has been a noted business disruption
called the retail apocalypse in recent years which
several retail businesses, especially in North
America, are sharply reducing their number of
stores, or going out of business entirely.

Retail strategy[edit]
See also: Strategic planning

Retailers make many strategic decisions – store type,

market served, product assortment and customer
services

The distinction between "strategic" and

"managerial" decision-making is commonly used to
distinguish "two phases having different goals and
based on different conceptual tools. Strategic
planning concerns the choice of policies aiming at
improving the competitive position of the firm, taking
account of challenges and opportunities proposed
by the competitive environment. On the other hand,
managerial decision-making is focused on the
implementation of specific targets."[74]
In retailing, the strategic plan is designed to set out
the vision and provide guidance for retail decision-
 makers and provide an outline of how the product
and service mix will optimize customer satisfaction.
As part of the strategic planning process, it is
customary for strategic planners to carry out a
detailed environmental scan which seeks to identify
trends and opportunities in the competitive
environment, market environment, economic
environment and statutory-political environment.
The retail strategy is normally devised or reviewed
every 3– 5 years by the chief executive officer.
The strategic retail analysis typically includes
following elements:[75]

The retailer also considers the overall strategic

position and retail image

* Market analysis
Market size, stage of market, market competitiveness,
market attractiveness, market trends
* Customer analysis
Market segmentation, demographic, geographic and
psychographic profile, values and attitudes, shopping habits,
brand preferences, analysis of needs and wants, media
habits
* Internal analysis
Other capabilities e.g. human resource capability,
technological capability, financial capability, ability to
generate scale economies or economies of scope, trade
relations, reputation, positioning, past performance
* Competition analysis
Availability of substitutes, competitor's strengths and
weaknesses, perceptual mapping, competitive trends
* Review of product mix
Sales per square foot, stock-turnover rates, profitability per
product line
* Review of distribution
channels
Lead-times between placing order and delivery, cost of
distribution, cost efficiency of intermediaries
* Evaluation of the
economics of the
strategy
Cost-benefit analysis of planned activities
At the conclusion of
the retail analysis, the
retail marketers should
have a clear idea of
which groups of
customers are to be
the target of marketing
activities. Retail
research studies
suggest that there is a
strong relationship
between a store's
positioning and the
socio-economic status
of customers.[76] In
addition, the retail
strategy, including
service quality, has a
significant and positive
association with
customer loyalty.[77] A
marketing strategy
effectively outlines all
key aspects of firms'
targeted audience,
demographics,
preferences. In a
highly competitive
market, the retail
strategy sets up long-
term sustainability. It
focuses on customer
relationships, stressing
the importance of
added value, customer
satisfaction and
highlights how the
store's market
positioning appeals to
targeted groups of
customers.[78]

The retail
marketing
mix[edit]
 The retail marketing
mix or the 6 Ps of
retailing

See also product

management; promotio
n mix; marketing
mix; price; servicescap
es and retail design
In the 1980s, the
customary sales
concept in the retail
industry gradually
showed many
disadvantages.Many
transactions cost too
much, the enterprise
can not retain
customers, only pay
attention to the
process of a single
transaction, do not pay
attention to the
marketing of customer
development and
maintenance, which
leads to each
transaction need to
spend marketing costs
to develop new
customers, but can not
retain customers.The
traditional marketing
theory holds that the
marketing process is a
one-time value
exchange process with
the transaction as the
means and exchange
of goods needed by
both parties as the
ultimate purpose.This
view holds that when
the transaction is
completed, the
relationship between
the two parties will also
end, so it is called
"transactive-oriented
marketing concept",
which realizes the
transaction of products
or services between
the two parties through
the identification of
target clients.This
transaction-oriented
marketing concept
generally follows the
development process
of finding target
consumers,
negotiating, trading
and ending
relationships to
complete the
transaction.This
traditional transaction
process is a one-time
transaction in which
both parties aim to
maximize their own
interests.This kind of
transactional
marketing concept will
bring about follow-up
problems such as poor
after-sales service
quality and lack of
feedback channels for
both parties.In
addition, because it
needs to redevelop
client relationship for
each transaction, it
causes a high total
transaction cost, which
promotes the gradual
development of the
concept of establishing
long term cooperative
relationship with
customers.That is to
say, enterprises begin
to pay attention to
establishing long term
good relations with
clients, and focus on
the core from
transaction to
relationship.[79] Althoug
h for retail enterprises,
expand the sales
market and attract new
customers is very
important, but also
should pay attention to
retail enterprises to
establish and maintain
long term good
relationship with old
customer is also very
important, relationship
marketing in order to
improve the
relationship with the
customers as the core,
which is beneficial to
enterprises in the
current competitive
retail market for the
competitiveness of the
steady, also is retail
enterprise
development direction
in the future. Once the
strategic plan is in
place, retail managers
turn to the more
managerial aspects of
planning. A retail mix is
devised for the
purpose of
coordinating day-to-
day tactical decisions.
The retail marketing
mix typically consists
of six broad decision
layers including
product decisions,
place decisions,
promotion, price,
personnel and
presentation (also
known as physical
evidence). The retail
mix is loosely based
on the marketing mix,
but has been
expanded and
modified in line with
the unique needs of
the retail context. A
number of scholars
have argued for an
expanded marketing,
mix with the inclusion
of two new Ps,
namely, Personnel and
Presentation since
these contribute to the
customer's unique
retail experience and
are the principal basis
for retail differentiation.
Yet other scholars
argue that the Retail
Format (i.e. retail
formula) should be
included.[80] The
modified retail
marketing mix that is
most commonly cited
in text-books is often
called the 6 Ps of
retailing (see diagram
at right).[81][82]
Product[edit]
See Product
management
The primary product-
related decisions
facing the retailer are
the product assortment
(what product lines,
how many lines and
which brands to carry);
the type of customer
service (high contact
through to self-service)
and the availability of
support services (e.g.
credit terms, delivery
services, after sales
care). These decisions
depend on careful
analysis of the market,
demand, competition
as well as the retailer's
skills and expertise.
Product
assortment[edit]

A typical supermarket
carries an assortment of
between 30,000 and
60,000 different products
 Assorted books

The term product

assortment refers to
the combination of
both product breadth
and depth. The main
characteristics of a
company's product
assortment are:[83]
(1) the length or
number of products
lines
the number of different products carried by a store
(2) the breadth
refers to the variety of product lines that a store offers. It is
also known as product assortment width, merchandise
breadth, and product line width.:
(3) depth or
number of
product
varieties
within a
product line
the number of each item or particular styles carried by a
store
(4)
consisten
cy
how products relate to each other in a retail environment.
For a
retaile
r,
finding
the
right
balanc
e
betwe
en
breadt
h and
depth
can
be a
key to
succe
ss. An
avera
ge
super
marke
t
might
carry
30,00
0–
60,00
0
differe
nt
produ
ct
lines
(produ
ct
length
or
assort
ment),
but
might
carry
up to
100
differe
nt
types
of
toothp
aste
(produ
ct
depth)
.[84] Sp
ecialit
y
retaile
rs
typical
ly
carry
fewer
produ
ct
lines,
perha
ps as
few as
20
lines,
but
will
norma
lly
stock
greate
r
depth.
Costc
o, for
exam
ple,
carrie
s
5,000
differe
nt
lines
while
Aldi c
arries
just
1,400
lines
per
store.[8
5]

Dis
co
unt
gro
cer
y
ret
ail
er,
Ald
i,
ha
s
su
cc
 es
sfu
lly
tri
m
me
d
the
nu
mb
er
of
pro
du
ct
lin
es
it
car
rie
s
to
ab
out
1,4
00

Large
assort
ments
offer
consu
mers
many
benefi
ts,
notabl
y
increa
sed
choice
and
the
possib
ility
that
the
consu
mer
will be
able
to
locate
the
ideal
produ
ct.
Howe
ver,
for the
retaile
r,
larger
assort
ments
incur
costs
in
terms
of
record
-
keepin
g,
mana
ging
invent
ory,
pricing
and
risks
associ
ated
with
wasta
ge
due to
spoile
d,
shopw
orn or
unsold
stock.
Carryi
ng
more
stock
also
expos
es the
retaile
r to
higher
risks
in
terms
of
slow-
movin
g
stock
and
lower
sales
per
squar
e foot
of
store
space.
On
the
other
hand,
reduci
ng the
numb
er of
produ
ct
lines
can
gener
ate
cost
saving
s
throug
h
increa
sed
stock
turnov
er by
elimin
ating
slow-
movin
g
lines,
fewer
stocko
uts,
increa
sed
bargai
ning
power
with
suppli
ers,
reduc
ed
costs
associ
ated
with
wasta
ge
and
carryi
ng
invent
ory,
and
higher
sales
per
squar
e foot
which
mean
s
more
efficie
nt
space
utilisat
ion.
When
deter
mining
the
numb
er of
produ
ct
lines
to
carry,
the
retaile
r must
consid
er the
store
type,
store's
physic
al
storag
e
capaci
ty, the
perish
ability
of
items,
expect
ed
turnov
er
rates
for
each
line
and
the
custo
mer's
needs
and
expect
ations.
Custo
mer
servic
e and
supp
orting
servic
es[edi
t]

Self-
service
is a
more
cost
efficien
t way
to
deliver
goods

Custo
mer
servic
e is
the
"sum
of acts
and
eleme
nts
that
allow
consu
mers
to
receiv
e what
they
need
or
desire
from
[the]
retail
establi
shme
nt."
Retail
ers
must
decide
wheth
er to
provid
e a full
servic
e
outlet
or
minim
al
servic
e
outlet,
such
as no-
servic
e in
the
case
of
vendin
g
machi
nes;
self-
servic
e with
only
basic
sales
assist
ance
or a
full
servic
e
operat
ion as
in
many
boutiq
ues
and
specia
lity
stores
. In
additio
n, the
retaile
r
needs
to
make
decisi
ons
about
sales
suppo
rt
such
as
custo
mer
deliver
y and
after
sales
custo
mer
care.
Retaili
ng
servic
es
may
also
includ
e the
provisi
on of
credit,
deliver
y
servic
es,
adviso
ry
servic
es,
excha
nge/
return
servic
es,
produ
ct
demo
nstrati
on,
specia
l
orders
,
custo
mer
loyalty
progra
ms,
limited
-scale
trial,
adviso
ry
servic
es
and a
range
of
other
suppo
rting
servic
es.
Retail
stores
often
seek
to
differe
ntiate
along
custo
mer
servic
e
lines.
For
exam
ple,
some
depart
ment
stores
offer
the
servic
es of
a styli
st; a
fashio
n
adviso
r, to
assist
custo
mers
selecti
ng a
fashio
nable
wardr
obe
for the
forthc
oming
seaso
n,
while
smalle
r
boutiq
ues
may
allow
regula
r
custo
mers
to
take
goods
home
on
appro
val,
enabli
ng the
custo
mer to
try out
goods
before
makin
g the
final
purch
ase.
The
variety
of
suppo
rting
servic
es
offere
d is
known
as
the se
rvice
type.
At one
end of
the
spectr
um,
self-
servic
e
operat
ors
offer
few
basic
suppo
rt
servic
es. At
the
other
end of
the
spectr
um,
full-
servic
e
operat
ors
offer a
broad
range
of
highly
perso
nalise
d
custo
mer
servic
es to
augm
ent
the
retail
experi
ence.[8
6]

When
makin
g
decisi
ons
about
custo
mer
servic
e, the
retaile
r must
balanc
e the
custo
mer's
desire
for
full-
servic
e
agains
t the
custo
mer's
willing
ness
to pay
for the
cost of
deliver
ing
suppo
rting
servic
es.
Self-
servic
e is a
very
cost
efficie
nt way
of
deliver
ing
servic
es
since
the
retaile
r
harne
sses
the
custo
mers
labour
power
to
carry
out
many
of the
retail
tasks.
Howe
ver,
many
custo
mers
appre
ciate
full
servic
e and
are
willing
to pay
a
premi
um for
the
benefi
ts of
full-
servic
e.[87]
A
sales
assist
ant's
role
typical
ly
includ
es
greeti
ng
custo
mers,
providi
ng
produ
ct and
servic
e-
relate
d
inform
ation,
providi
ng
advice
about
produ
cts
availa
ble
from
curren
t
stock,
answe
ring
custo
mer
questi
ons,
finalisi
ng
custo
mer
transa
ctions
and if
neces
sary,
providi
ng
follow-
up
servic
e
neces
sary
to
ensur
e
custo
mer
satisfa
ction.[8
8]
For
retail
store
owner
s, it is
extre
mely
import
ant to
train
perso
nnel
with
the
requisi
te
skills
neces
sary
to
deliver
excell
ent
custo
mer
servic
e.
Such
skills
may
includ
e
produ
ct
knowl
edge,
invent
ory
mana
geme
nt,
handli
ng
cash
and
credit
transa
ctions,
handli
ng
produ
ct
excha
nge
and
return
s,
dealin
g with
difficul
t
custo
mers
and of
cours
e, a
detaile
d
knowl
edge
of
store
policie
s. The
provisi
on of
excell
ent
custo
mer
servic
e
create
s
more
opport
unities
to
build
enduri
ng
custo
mer
relatio
nships
with
the
potent
ial to
turn
custo
mers
into
sourc
es of
referra
l or
retail
advoc
ates.
In the
long
term,
excell
ent
custo
mer
servic
e
provid
es
busine
sses
with
an
ongoi
ng rep
utatio
n and
may
lead
to a
comp
etitive
advan
tage.
Custo
mer
servic
e is
essent
ial for
sever
al
reaso
ns.[89]
Firstly,
custo
mer
servic
e
contri
butes
to the
custo
mer's
overall
retail
experi
ence.
Secon
dly,
eviden
ce
sugge
sts
that a
retail
organi
zation
which
trains
its
emplo
yees
in
appro
priate
custo
mer
servic
e
benefi
ts
more
than
those
who
do
not. C
ustom
er
servic
e
trainin
g enta
ils
instruc
ting
perso
nnel in
the
metho
ds of
servici
ng the
custo
mer
that
will
benefi
t
corpor
ations
and
busine
sses.
It is
import
ant to
establi
sh a
bond
amon
gst
custo
mers-
emplo
yees
known
as Cu
stome
r
relatio
nship
mana
geme
nt.[90]
Co
unt
er
ser
vic
e
is
as
so
cia
ted
wit
h
full
ser
vic
e
ret
ail
out
let
s
an
d
all
ow
 s
the
sal
es
per
so
n
to
pro
vid
e
ex
per
t
ad
vic
e

Types
of
custo
mer
servic
e[edit
]
There
are
sever
al
ways
the
retaile
r can
deliver
servic
es to
consu
mers:

 C
ou
nt
er
se
rvi
ce
,
w
he
re
go
od
s
ar
e
ou
t
of
re
ac
h
of
bu
ye
rs
an
d
m
us
t
be
ob
tai
ne
d
fr
o
m
th
e
se
lle
r.
T
hi
s
ty
pe
of
re
tai
l
is
co
m
m
on
fo
r
s
m
all
ex
pe
ns
iv
e
 ite
m
s
(e
.g.
je
w
ell
er
y)
an
d
co
nt
rol
le
d
ite
m
s
lik
e
m
ed
ici
ne
an
d
liq
uo
r.
 Cl
ic
k
an
d
C
o
m
m
ut
e,
w
he
re
pr
od
uc
ts
ar
e
or
de
re
d
on
lin
 e
an
d
ar
e
pi
ck
ed
up
vi
a
a
dri
ve
th
ro
ug
h.
 S
hi
p
to
St
or
e,
w
he
re
pr
od
uc
ts
ar
e
or
de
re
d
on
lin
e
an
d
ca
n
be
pi
ck
ed
up
at
th
e
re
tai
ler
's
 m
ai
n
st
or
e
 D
eli
ve
ry,
w
he
re
go
od
s
ar
e
sh
ip
pe
d
dir
ec
tly
to
co
ns
u
m
er'
s
ho
m
es
or
w
or
kp
la
ce
s.
 M
ail
or
de
rf
ro
m
a
pri
nt
ed
ca
tal
og
ue
w
as
in
ve
nt
ed
in
17
44
an
d
w
as
co
m
m
on
in
th
e
lat
e
19
th
an
d
ea
rly
20
th
ce
nt
uri
es
.
Or
de
rin
g
by
te
le
ph
on
e
w
as
co
m
m
on
in
th
e
20
th
ce
nt
ur
y,
eit
he
r
fr
o
m
a
ca
tal
og
,
ne
w
sp
ap
er
,t
el
ev
isi
on
ad
ve
rti
se
m
en
to
r
a
lo
ca
l
re
st
au
ra
nt
m
en
u,
fo
r
im
m
ed
iat
e
se
rvi
ce
(e
sp
ec
ial
ly
fo
r
pi
zz
a
de
liv
er
y),
re
m
ai
ni
ng
in
co
m
m
on
us
e
fo
r
fo
od
or
de
rs.
Int
er
ne
t
sh
op
pi
ng
–
a
fo
r
m
of
de
liv
er
y
–
ha
s
ec
lip
se
d
ph
on
e-
or
de
rin
g,
an
d,
in
se
ve
ral
se
ct
or
s
–
su
ch
as
bo
ok
s
an
d
m
us
ic
–
all
ot
he
r
fo
r
m
s
of
bu
yi
ng
.
T
he
re
is
in
cr
ea
si
ng
co
m
pe
tit
or
pr
es
su
re
to
de
liv
er
co
ns
u
m
er
go
od
s
–
es
pe
ci
all
y
th
os
e
off
er
ed
on
lin
e
–
in
a
m
or
e
ti
m
el
y
fa
sh
io
n.
La
rg
e
on
lin
e
re
tai
ler
s
su
ch
as
A
m
az
on
.c
o
m
ar
e
co
nti
nu
all
y
in
no
va
tin
g
an
d
as
of
20
15
off
er
on
e-
ho
ur
de
liv
er
y
in
ce
rt
ai
n
ar
ea
s.
T
he
y
ar
e
al
so
w
or
ki
ng
wi
th
dr
on
e
te
ch
no
lo
gy
to
pr
ov
id
e
co
ns
u
m
er
s
wi
th
m
or
e
eff
ici
en
t
de
liv
er
y
op
tio
ns
.
Di
re
ct
m
ar
ke
tin
g,
in
cl
ud
in
gt
el
e
m
ar
ke
tin
g
an
d
tel
ev
isi
on
s
ho
pp
in
g
ch
an
ne
ls,
ar
e
al
so
us
ed
to
ge
ne
ra
te
tel
ep
ho
ne
or
de
rs.
st
ar
te
d
ga
ini
ng
si
gn
ifi
ca
nt
m
ar
ke
t
sh
ar
e
in
de
ve
lo
pe
d
co
un
 tri
es
in
th
e
20
00
s.
 D
oo
r-
to
-
do
or
s
al
es
,
w
he
re
th
e
sa
le
sp
er
so
n
so
m
eti
m
es
tr
av
el
s
wi
th
th
e
go
od
s
fo
r
sa
le.
 S
elf
-
se
rvi
ce
,
 w
he
re
go
od
s
m
ay
be
ha
nd
le
d
an
d
ex
a
mi
ne
d
pri
or
to
pu
rc
ha
se
.
 Di
git
al
de
liv
er
y
or
D
o
w
nl
oa
d,
w
he
re
int
an
gi
bl
e
go
od
s,
su
ch
as
m
us
ic,
fil
m,
an
d
el
ec
tr
on
ic
bo
ok
s
an
d
su
bs
cri
pti
on
s
to
m
ag
az
in
es
,
ar
e
de
liv
er
ed
dir
ec
tly
to
th
e
co
ns
u
m
er
in
th
e
fo
r
m
of
inf
or
m
ati
on
tr
an
s
mi
tte
d
eit
he
r
ov
er
wi
re
s
or
air
-
w
av
es
,
an
d
is
re
co
ns
tit
ut
ed
by
a
de
vi
ce
w
hi
ch
th
e
co
ns
u
m
er
co
nt
rol
s
(s
uc
h
as
an
M
P
3
pl
ay
er
;
se
e
di
git
al
rig
ht
s
m
an
ag
e
m
en
t).
T
he
di
git
al
sa
le
of
m
od
el
s
fo
r
3
D
pri
nti
ng
al
so
fit
s
he
re
,
as
do
th
e
m
ed
ia
le
as
in
g
 ty
pe
s
of
se
rvi
ce
s,
su
ch
as
st
re
a
mi
ng
.
Plac
e[edit
]
Place
decisi
ons
are
primar
ily
conce
rned
with
consu
mer
acces
s and
may
involv
e
locatio
n,
space
utilisat
ion
and
operat
ing
hours.
Sel
ler
s
of
so
uv
eni
rs
are
typ
ical
ly
loc
ate
d
in
hig
h
traf
fic
are
as
su
ch
as
thi
s
Lo
nd
on
so
uv
eni
r
sta
nd
sit
uat
ed
ne
ar
 a
rail
wa
y
sta
tio
n
on
a
bu
sy
str
eet
cor
ner

Locati
on[ed
it]
Also
see Si
te
selecti
on
Persp
ective
of
large
retail
enterp
rises
of
supply
chain
relatio
nship
marke
ting is
based
on the
theory
of
supply
chain
mana
geme
nt in
large
retail
enterp
rises
of
supply
chain
in the
applic
ation
of
relatio
nship
marke
ting, it
emph
asizes
that
the
suppli
ers,
large-
scale
retail
enterp
rises,
custo
mers
form a
chain
of
large
retail
enterp
rises
and
suppli
ers to
form
coope
rative
marke
ting,
establi
sh
mutua
lly
benefi
cial
long
term
good
relatio
nship
with
custo
mers.
Relati
onship
marke
ting of
huge
retail
enterp
rises
from
the
persp
ective
of
supply
chain
mainly
includ
es two
relatio
nship
marke
ts,
suppli
er
relatio
nship
and
custo
mer
relatio
nship
marke
t.Beca
use
the
two
stakeh
olders
that
have
the
greate
st
influen
ce on
the
profits
of
retail
enterp
rises
are
suppli
ers
and
custo
mers.
First,
as the
suppli
er of
comm
odities
to
retail
enterp
rises,
it
directl
y
deter
mines
the
procur
ement
cost of
comm
odities
to
retail
enterp
rises,
which
is
mainly
reflect
ed in
the
purch
ase
price
of
comm
odities
thems
elves,
the
cost
incurr
ed in
the
procur
ement
proce
ss,
and
the
loss
cost
cause
d by
unsta
ble
supply
of
comm
odities
.In
additio
n, the
good
relatio
nship
with
suppli
er
intera
ction,
large
retail
enterp
rises
can
also
promo
te the
suppli
ers
timely
grasp
the
marke
t
inform
ation,
impro
ved or
innova
tive
produ
cts
accor
ding
to
custo
mer
dema
nd,
which
contri
buted
to the
retail
enterp
rises
impro
ve the
marke
t
comp
etitive
ness
of the
goods
are
sold,
so the
retail
enterp
rise's
relatio
nship
with
suppli
er
directl
y
affects
the
retail
enterp
rises
in the
comm
odity
marke
t
comp
etitive.
Secon
d, due
to the
transf
er of
advan
tages
betwe
en
buyer
s and
sellers
, the
retail
indust
ry has
turned
to the
buyer'
s
marke
t, and
consu
mers
have
beco
me
the
key
resour
ces
for
major
retaile
rs to
comp
ete
with
each
other.[
91]
The
refore,
it is
very
import
ant to
establi
sh a
good
relatio
nship
with
clients
and
impro
ve
custo
mer
loyalty
. The
relatio
nship
marke
ting of
custo
mer
relatio
nship
marke
t
regard
s the
transa
ction
with
clients
as a
long
term
activit
y.Reta
il
enterp
rises
should
pursu
e
long-
term
mutua
l
benefi
t
maxim
ization
rather
than a
single
transa
ction
sales
profit
maxim
ization
.This
requir
es
large
retail
enterp
rises
to
establi
sh a
custo
mer-
orient
ed
tradin
g
relatio
nship
with
the
custo
mer
relatio
nship
marke
t.
Retail
stores
are
typical
ly
locate
d
where
marke
t
opport
unities
are
optim
al –
high
traffic
areas,
centra
l
busine
ss
district
s.
Select
ing
the
right
site
can
be a
major
succe
ss
factor.
When
evalua
ting
potent
ial
sites,
retaile
rs
often
carry
out
a trad
e area
analys
is; a
detaile
d
analys
is
design
ed to
appro
ximate
the
potent
ial
patron
age
area.
Techn
iques
used
in
trade
area
analys
is
includ
 e: Rad
ial
(ring)
studie
s; Gra
vity
model
s and
Drive
time
analys
es.
In
additio
n,
retaile
rs
may
consid
er a
range
of
both
qualita
tive
and
quanti
tative
factor
s to
evalua
te to
potent
ial
sites
under
consid
eratio
n:
Macro
factor
s[edit
]
Macro factors include market characteristics (demographic,
economic and socio-cultural), demand, competition and
infrastructure (e.g. the availability of power, roads, public
transport systems)
Mi
cr
o
fa
ct
or
s[
e
 di
t]
Micro factors include the size of the site (e.g. availability of
parking), access for delivery vehicles
C
h
a
n
n
e
l
s
[
e
d
i
t
]
A
m
a
j
o
r
r
e
t
a
i
l
t
r
e
n
d
h
a
s
b
e
e
n
t
h
e
s
h
i
f
t
t
o
m
u
l
t
i
-
c
h
a
n
n
e
l
r
e
t
a
i
l
i
n
g
.
T
o
c
o
u
n
t
e
r
t
h
e
d
i
s
r
u
p
t
i
o
n
c
a
u
s
e
d
b
y
o
n
l
i
n
e
r
e
t
a
i
l
,
m
a
n
y
b
r
i
c
k
s
a
n
d
m
o
r
t
a
r
r
e
t
a
i
l
e
r
s
h
a
v
e
e
n
t
e
r
e
d
t
h
e
o
n
l
i
n
e
r
e
t
a
i
l
s
p
a
c
e
,
b
y
s
e
t
t
i
n
g
u
p
o
n
l
i
n
e
c
a
t
a
l
o
g
u
e
s
a
l
e
s
a
n
d
e
-
c
o
m
m
e
r
c
e
w
e
b
s
i
t
e
s
.
H
o
w
e
v
e
r
,
m
a
n
y
r
e
t
a
i
l
e
r
s
h
a
v
e
n
o
t
i
c
e
d
t
h
a
t
c
o
n
s
u
m
e
r
s
b
e
h
a
v
e
d
i
f
f
e
r
e
n
t
l
y
w
h
e
n
s
h
o
p
p
i
n
g
o
n
l
i
n
e
.
F
o
r
i
n
s
t
a
n
c
e
,
i
n
t
e
r
m
s
o
f
c
h
o
i
c
e
o
f
o
n
l
i
n
e
p
l
a
t
f
o
r
m
,
s
h
o
p
p
e
r
s
t
e
n
d
t
o
c
h
o
o
s
e
t
h
e
o
n
l
i
n
e
s
i
t
e
o
f
t
h
e
i
r
p
r
e
f
e
r
r
e
d
r
e
t
a
i
l
e
r
i
n
i
t
i
a
l
l
y
,
b
u
t
a
s
t
h
e
y
g
a
i
n
m
o
r
e
e
x
p
e
r
i
e
n
c
e
i
n
o
n
l
i
n
e
s
h
o
p
p
i
n
g
,
t
h
e
y
b
e
c
o
m
e
l
e
s
s
l
o
y
a
l
a
n
d
m
o
r
e
l
i
k
e
l
y
t
o
s
w
i
t
c
h
t
o
o
t
h
e
r
r
e
t
a
i
l
s
i
t
e
s
.
[
9
2
]

O
n
l
i
n
e
s
t
o
r
e
s

a
r
e
u
s
u
a
l
l
y
a
v
a
i
l
a
b
l
e
2
4
h
o
u
r
s
a
d
a
y
,
a
n
d
m
a
n
y
c
o
n
s
u
m
e
r
s
i
n
W
e
s
t
e
r
n
c
o
u
n
t
r
i
e
s
h
a
v
e
I
n
t
e
r
n
e
t
a
c
c
e
s
s
b
o
t
h
a
t
w
o
r
k
a
n
d
a
t
h
o
m
e
.
P
r
i
c
i
n
g
s
t
r
a
t
e
g
y
a
n
d
t
a
c
t
i
c
s
[
e
d
i
t
]
S
e
e
a
l
s
o

P
r
i
c
i
n
g
S
t
r
a
t
e
g
i
e
s

A
p
r
i
c
e
t
a
g
 i
s
a
h
i
g
h
l
y
v
i
s
u
a
l
a
n
d
o
b
j
e
c
t
i
v
e
g
u
i
d
e
t
o
v
a
l
u
e

T
h
e
b
r
o
a
d
p
r
i
c
i
n
g
s
t
r
a
t
e
g
y
i
s
n
o
r
m
a
l
l
y
e
s
t
a
b
l
i
s
h
e
d
i
n
t
h
e
c
o
m
p
a
n
y
'
s
o
v
e
r
a
l
l
s
t
r
a
t
e
g
i
c
p
l
a
n
.
I
n
t
h
e
c
a
s
e
o
f
c
h
a
i
n
s
t
o
r
e
s
,
t
h
e
p
r
i
c
i
n
g
s
t
r
a
t
e
g
y
w
o
u
l
d
b
e
s
e
t
b
y
h
e
a
d
o
f
f
i
c
e
.
B
r
o
a
d
l
y
,
t
h
e
r
e
a
r
e
s
i
x
a
p
p
r
o
a
c
h
e
s
t
 o
p
r
i
c
i
n
g
s
t
r
a
t
e
g
y
m
e
n
t
i
o
n
e
d
i
n
t
h
e
m
a
r
k
e
t
i
n
g
l
i
t
e
r
a
t
u
r
e
:
Operations-oriented pricing: where the objective is to
optimise productive capacity, to achieve operational
efficiencies or to match supply and demand through varying
prices. In some cases, prices might be set to demarket.[93]
Revenue-oriented pricing: (also known as profit-oriented
pricing or cost-based pricing) – where the marketer seeks to
maximise the profits (i.e., the surplus income over costs) or
simply to cover costs and break even.[93]
Customer-oriented pricing: where the objective is to
maximise the number of customers; encourage cross-selling
opportunities or to recognise different levels in the
customer's ability to pay.[93]
Value-based pricing: (also known as image-based pricing)
occurs where the company uses prices to signal market
value or associates price with the desired value position in
the mind of the buyer. The aim of value-based pricing is to
reinforce the overall positioning strategy e.g. premium
pricing posture to pursue or maintain a luxury image.[94][95]
Relationship-oriented pricing: where the marketer sets
prices in order to build or maintain relationships with existing
or potential customers.[96]
Socially-oriented pricing: Where the objective is to
encourage or discourage specific social attitudes and
behaviours. e.g. high tariffs on tobacco to discourage
smoking.[97]
Upselling and cross selling are sometimes known
as suggestive selling. When the consumer has selected their
main purchase, sales assistants can try to sell the customer
on a premium brand or higher quality item (up-selling) or can
suggest complementary purchases (cross-selling). For
instance, if a customer purchases a non-stick frypan, the
sales assistant might suggest plastic slicers that do not
damage the non-stick surface.

Skilled sales assistants find ways to focus on value rather

than price. Selling on value often involves identifying a
product’s unique features. Adding value to goods or services
such as a free gift or buy 1 get 1 free adds value to
customers where as the store is gaining sales[107]
Sales staff must learn to recognise when the customer is
ready to make a purchase. If the sales person feels that the
customer is ready, then they may seek to gain commitment
and close the sale. Experienced sales staff soon learn to
recognise specific verbal and non-verbal cues that signal the
client's readiness to buy. For instance, if a customer begins
to handle the merchandise, this may indicate a state of buyer
interest. Clients also tend to employ different types of
questions throughout the sales process. General questions
such as, "Does it come in any other colours (or styles)?"
indicate only a moderate level of interest. However, when
clients begin to ask specific questions, such as "Do you have
this model in black?" then this often indicates that the
prospect is approaching readiness to buy.[108] When the sales
person believes that the prospective buyer is ready to make
the purchase, a trial close might be used to test the waters.
A trial close is simply any attempt to confirm the buyer's
interest in finalising the sale. An example of a trial close, is
"Would you be requiring our team to install the unit for you?"
or "Would you be available to take delivery next Thursday?"
If the sales person is unsure about the prospect's readiness
to buy, they might consider using a 'trial close.' The
salesperson can use several different techniques to close
the sale; including the ‘alternative close’, the ‘assumptive
close’, the ‘summary close’, or the ‘special-offer close’,
among others.
Some shops sell second-hand goods. In the case of
a nonprofit shop, the public donates goods to the shop to be
sold. In give-away shops goods can be taken free.
Pawnbrokers Another form is the pawnshop, in which goods
are sold that were used as collateral for loans. There are
also "consignment" shops, which are where a person can
place an item in a store and if it sells, the person gives the
shop owner a percentage of the sale price. The advantage of
selling an item this way is that the established shop gives the
item exposure to more potential buyers. E-tailers like OLX
and Quikr also offer second-hand goods.
Companies by industry
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Lingerie

porting goods

wimwear

Chemical

Oil and gas

Oil exploration and production

Oilfield service

ublic utilities

olar thermal power

Asset management

Banks

nternational

nvestment

Hedge funds

rivate equity

tock exchanges

Venture capital

Beer and breweries

Casual dining

Champagne houses

Cheesemakers

Chocolate

Coffee

Coffeehouses

ast food
ood

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izza

Restaurant chains

Revolving

oft drinks

Tea
Vineyards and wineries

Biotechnology
Health club
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Aerial lift

Aircraft

Astronomical instruments

Automobile

Bicycles

CIGS

Cymbals

Dump trucks

Horns

Locomotive

Microphone

Modern armament

Motorcycles

Radio-controlled model aircraft kits

Rolling stock

cooters

quipment

olid-state drives

teel

tuffed toys

Touch-solution

Traction motors

Tractors

Tram

Wind turbines

Animation
nime

Cable television

Children's book publishers

ilm production

ornography

Record labels

Television networks
Video games

Book clubs
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hains

ndependent

Convenience

Cooperatives

Department

Games

Hypermarkets

harmacies

upermarkets

uperstores

Casinos

Construction equipment rental

Hotels

Law firms

Management consulting

Marketing research

Advertising technology

Automation integrator

Computer-aided design

Computer hardware

Computer systems

Consumer electronics

Electric-vehicle batteries

Electronic design automation

Enterprise search

lash memory controllers

nformation technology

hotovoltaics

emiconductors

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Telecommunications

Airlines
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Bus

Cruise lines

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Railway

hip

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Lists of companies
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