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Chapter 1,Introduction to the World of Retailing,1-2,What is Retailing?,Retailing a set of business activities that adds value to the products and services sold to consumers for their personal or family use.,A retailer is a business that sells products and/or services to consumers for personal or family use.,James Darell/Getty Images,1-3,Examples of Retailers,Retailers: Kohls, Macys, Wendys, A, Jiffy Lube, AMC Theaters, American Eagle Outfitter, Kroger Firms that are retailers and wholesalers that sell to other business as well as consumers: Office Depot, The Home Depot, United Airlines, Bank of America, Costco,The McGraw-Hill Companies, Inc./Andrew Resek, photographer,The McGraw-Hill Companies, Inc./John Flournoy, photographer,1-4,Retailing is a High Tech Industry,Selling Merchandise over the InternetUsing Internet to manage supply chainsAnalyze POS data to tailor assortments to storesComputer systems for merchandise planning,Ryan McVay/Getty Images,1-5,Nature of Retail Industry is Changing,Mom and Pop Store,To Todays Retailer,1-6,Worlds Largest Retailers,1-7,The Distribution Channel,1-8,Manufacturing, Wholesaling and Retailing,Vertical Integration firm performs more than one set of activitiesEx: retailer invests in wholesaling or manufacturingBackward Integration retailer performs some distribution and manufacturing activitiesEx: JCPenney sells Arizona jeans (Private Label)Forward Integration manufacturers undertake retailing activitiesEx: Ralph Lauren operates its own stores,1-9,How Retailers Add Value,Break Bulk -Buy it in quantities customers wantHold Inventory -Buy it at a convenient place when you want itProvide Assortment -Buy other products at the same timeOffer Services -See it before you buy, get credit, layaway,Ryan McVay/Getty Images,1-10,How Retailers Add Value,The value of the product and service increases as the retailer performs functions.,Bicycle is developed at manufacturer,Bicycle is developed in several styles,Bicycle is offered in convenient locations in quantities of one,Bicycle is featured on floor display,Bicycle can be bought on credit or put on layaway,1-11,Social and Economic Significance of Retailing,Community SupportOver $3.4 trillion in annual U.S. sales greater than medical care, housing, recreation combinedEmploys 27 million people 21% of non-agricultural US workforceManagement training opportunitiesEntrepreneurial opportunities,1-12,Retailing is Big Part of Economy,Services (45.8%),Manufacturing (11.2%),Retail (21.8%),Government (16.6%),Other 5.6%,1-13,Comparison of Distribution Channels Across the Globe,1-14,Retail Mix,Retail Strategy,Customer Service,Location,MerchandiseAssortment,Pricing,Communication Mix,Store Designand Display,1-15,Macys Retail Mix,Retail Strategy,Customer Service,Location,MerchandiseAssortment,Pricing,Communication Mix,Store Designand Display,1-16,Macys Retail Mix,Enclosed Malls,Location Strategy,1-17,Macys Retail Mix,Location,Pricing,Communication Mix,Store Design and Display,Customer Service,Many Items in Apparel and Soft Home,Assortment Strategy,1-18,Macys Retail Mix,Location,Communication Mix,Store Design and Display,Customer Service,Merchandise Assortment,Moderate with Frequent Sales,Pricing Strategy,1-19,Macys Retail Mix,Communication Mix,TV, Newspaper Ads andSpecial Events,Store DesignAnd Display,Merchandise Assortment,Pricing,Customer Service,Location,1-20,Macys Retail Mix,Store Design and Display,Racetrack with Displays,Customer Service,Location,Merchandise Assortments,Pricing,Communication Mix,1-21,Macys Retail Mix,Customer Service,Modest,Location,Merchandise Assortment,Pricing,Communication Mix,Store Design and Display,1-22,Targets Retail Mix,Retail Strategy,Customer Service,Location,MerchandiseAssortment,Pricing,Communication Mix,Store Designand Display,1-23,Targets Retail Mix,Free-standing Stores,Location Strategy,1-24,Targets Retail Mix,Location,Pricing,Communication Mix,Store Design and Display,Customer Service,Large Number of CategoriesPrivate Labels Few Items in Each Category,Assortment Strategy,1-25,Targets Retail Mix,Location,Communication Mix,Store Design and Display,Customer Service,Merchandise Assortment,Low to Modest,Pricing Strategy,1-26,Targets Retail Mix,Communication Mix,TV and Newspaper Insert Ads,Store DesignAnd Display,Customer Service,Location,Merchandise Assortment,Pricing,1-27,Targets Retail Mix,Store Design and Display,Colorful, wide aisles displaysfor products with a grid layout,Customer Service,Location,Merchandise Assortments,Pricing,Communication Mix,1-28,Targets Retail Mix,Customer Service,Limited,Location,Merchandise Assortment,Pricing,Communication Mix,Store Design and Display,1-29,JCPenneys Strategic Evolution,Main Street private label soft goods retailerChanges in environment - increased disposable income, growth of suburbs, interstate highway programEmulate Sears in enclosed suburban mallsFocus on soft goods - drop automotive, sporting goods, hardwareDevelop catalog, develop electronic retailingStand alone storesCentralized checkout,1-30,Organic and natural foods supermarket chainAssortment beyond organic/natural foodsPrivate labels - Whole Food, 360 Day ValueLove, trust, and employee empowermentAlways innovation: Candy Island Lamar Street Greens Fifth Street Seafood In-store Massage Therapist,Whole Foods Implementation,1-31,Ethical Situations for a Retail Manager,Should a retailer sell merchandise that is suspects was made using child labor?Should it advertise that its prices are lowest in area even though some items are not?Should a buyer accept an expensive gift from a vendor?Should salespeople use high-pressure sales when they know the product is not the best for the customers needs?Should a retailer give p
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