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An Introduction to Retailing
Retailing
Retailing encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sale to the final consumer.
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Issues in Retailing
How can we best serve our customers while earning a fair profit? How can we stand out in a highly competitive environment where consumers have too many choices? How can we grow our business, while retaining a core of loyal customers?
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The Philosophy
Retailers can best address these questions by fully understanding and applying the basic principles of retailing, as well as the elements in a well-structured, systematic, and focused retail strategy.
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# of stores
# of employees
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8 9 10
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Kmart
Costco Safeway J.C. Penney
37,028
34,797 34,301 32,004
2,150
369 1,773 3,770
240,525
64,500 193,000 270,000
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Wholesaler
Final Consumer
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Multi-Channel Retailing
A retailer sells to consumers through multiple retail formats Web sites Physical stores
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Distribution Types
Exclusive: suppliers make agreements with one or few retailers that designate the latter as the only ones in a specified geographic area to carry certain brands or products Intensive: suppliers sell through as many retailers as possible Selective: suppliers sell through a moderate number of retailers
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Popularity of Stores
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Retail Strategy
An overall plan for guiding a retail firm Influences the firms business activities Influences firms response to market forces
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Coordinated Effort
Value driven Goal Orientation
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Retailing Concept
Retail Strategy
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Customer Service
Activities undertaken by a retailer in conjunction with the basic goods and services it sells. Store hours Parking Shopper-friendliness Credit acceptance Salespeople
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Relationship Retailing
Seek to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encounter Concentrate on the total retail experience Monitor satisfaction Stay in touch with customers
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Strategic
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