Professional Documents
Culture Documents
PPT2-1
Types of Retailers
Use Different Mixes merchandise
Variety (Breadth) Assortment (Depth)
LO3
Categorizing Retailers
Census Bureau Number of Outlets Margin versus Turnover Location Size
LO3
Low Turnover
High Turnover
Low Margin
PPT2-2
PPT2-3
PPT2-4
Merchandise Offering
Variety (breadth of Merchandise) The number of merchandise categories offered by a retailer Assortment (Depth of Merchandise) The number of different items (SKUs) offered in a merchandise category
PPT2-7
Types of Retailers
Food Retailers
Mom and Pop Stores Convenience stores Supermarkets
Specialty Stores
Discount Stores Category Specialists
Supercenters
Off-Price Retailer
Warehouse Club
PPT2-8
Supermarkets General merchandise discount stores Fast-food restaurants Drug stores Convenience stores Wholesale clubs Specialty food stores
100 68 65 39 37 27 9
Source: Consumers Are Skeptical Again, 63rd Annual Report of the Grocery Industry, Progressive Grocer, April 1996, p.42.
PPT2-6
LO2
E-tailing
E-tailing is one of the most dynamic areas of retailing accounting for more than 20 billion dollars in 2000 and estimated to rise to over 100 billion by 2005. Bluefly, a leading on-line retailer since its launch in Sept. 1997 continues to find success in the on-line format.
LO2
E-tailing
Although the opportunities in e-tailing can be enormous. E-tailers, such as eToys, which closed its web site in February of 2001, have found that the competition is intense and sustaining a competitive etail enterprise is challenging.
LO2
LO2
Category Killers
Just For Feet, the category killer in the athletic footware and apparel sector founded in 1977, cruised through the 1990s. However, Just For Feet has suffered financial setbacks from a lack of adapting to changes in the evolving retail landscape.
LO4
$30B $10B $ 8B $ 7B $ 6B $ 5B $ 4B $ 3B $ 2B $ 1B
Sears
Wal-Mart K-Mart
A&P
LO4
Quantity Pricing Actions move the consumer up and down the current demand curve.
Quantity Non-price Actions seek to shift the demand curve to right and make it more inelastic.
LO4
LO4
LO4
LO4
MQ4
Managerial Question
Should retailers advertise the fact that they are the owners of the private label brand(s) they sell?
LO4
LO4
LO3
LO3
LO3
Wheel of Retailing
Some would argue that McDonalds has become a victim of the wheel of retailing. When McDonalds started out, it served a select menu. Over the years, the McDonalds product offering has expanded to the inclusion of playgrounds, thus opening the way for new, low-cost fast-food providers, such as Checkers.
LO3
Time
Narrow Assortment
Wide Assortment
LO3
LO3
LO3
LO3
LO3
LO3
Decline
The once promising idea is no longer needed in the marketplace. As a result, market share and profits fall.
Introduction
Growth
Maturity
E-tailing (1990s) Food Courts (1980s) Warehouse Clubs (1970s) Supercenters (1990s) Airport-based Department Stores (1860s) Retailers (1980s) Supermarkets (1930s) Convenience Stores (1960s) Category Killers (1970s)