Retail Management Chapter 2

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Retail Management

Chapter 2: Types Of Retailers


•Variety - is the number of merchandise
categories a retailer offers. It is often
referred as breadth of merchandise
carried by retailer.

•Assortment - is the number of


different items in a merchandise
category. It is referred to as depth of
merchandise.

•SKU or stockkeeping unit - each


different item of merchandise.
•Food Retailers
• Conventional Supermarket - is a self-service
food store offering groceries, meat and produce
with limited sales of nonfood items, such as
health and beauty aids and general
merchandise.
• Trends in Supermarket Retailing

- Competition (in terms of distribution,


cost, prices)
- Changing Consumption Pattern (time
pressure, eating out more, meal solutions)
• Supercenters - the fastest growing retail
category; are large stores that combine a
supermarket with a full-line discount store.
•Warehouse Clubs - are retailers that offer a limited
and irregular assortment of food and general
merchandise with little service at low prices for
ultimate consumers and small business.
•Convenience Store - provide a
limited variety of assortment of
merchandise at a convenient
location.
•Typically receives deliveries
everyday.
•They can charge higher prices
than supermarkets.
•General Merchandise Retailers
•Department Stores - retailers that carry a
broad variety and deep assortment, offer
customer services and organize their stores
into distinct departments for displaying
merchandise.
Full-line Discount Stores-
retailers that offer a broad
variety of merchandise,
limited service and low
prices.
•Offer brands that are less
known or fashionable
compared with those in
department stores.
•Specialty Store -
concentrates on limited
number of complementary
merchandise categories and
provide a high level of
service in relatively small
store. Ex. Those only offering
cosmetics or perfume.
Drugstores - specialty stores concentrating on health
and personal grooming merchandise.
•Extreme value retailers - are
small, full-line discount stores
that offer a limited merchandise
assortment at very low prices.
•Example 99 store
•Off-Price Retailers - also
known as close-out retailers
wherein they offer inconsistent
assortment of brand name
merchandise at low prices.
•Outlet store / Factory outlet
Non-Store Retailers
•Electronic Retailers -
also known as e-tailing,
online retailing and
internet retailing. They
communicate to
customers and offer
goods and services
through internet.
•Catalog Retailing – the
retail offering is
communicated through
catalog, whereas direct-
mail retailers communicate
through letters and
brochures.
•Vending Machine
Retailing – merchandise
or services are stored in a
machine and dispensed
to costumers when they
deposit card or credit
card.
• Service Retailers
Firms that primarily sells services
rather than merchandise.
Examples are airline, banks,
education, fast food, insurance,
restaurants etc.
•Types of Ownership

• Independent, Single-
Store Establishments
• Corporate Retail
Chains
• Franchising

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