RETAILING AND WHOLESALING.ppt

Notes: A retail establishment can be classified according to its ownership, level of service, product assortment, and price. Retailers use the latter three variables to position themselves in the competitive marketplace. These variables can be combined in several ways to create distinctly different retail operations. Notes: Independent retailers are retailers owned by a single person or partnership. Around the world, most retailers are independent. Chain stores are owned and operated as a group by a single organization. Franchises are owned and operated by individuals, but are licensed by a larger supporting organization. Notes: The level of service that retailers provide can be classified along a continuum, from full-service to self-service. On Line: Walgreen’s Do you think drugstore Web sites add value for the consumer? What services on Walgreens’ site would you be most likely to use? Would Internet selling be a factor in your choice of a pharmacy? Notes: With the experimentation with alternative formats of retail stores, classification has become more difficult. Department stores: carries a wide variety of shopping and specialty goods. Purchases are made within each department. Specialty stores: merchandise is tailored to specific target markets. Price is a secondary consideration to consumers. Supermarkets: U.S. consumers spend about a tenth of income in supermarkets. Trends: the growth of prepared foods and time-saving products, and the need for convenience. Drugstores: stock pharmacy-related products and services. Convenience stores: defined as a miniature supermarket, carrying only a limited line of convenience goods. Discount stores: a retailer that competes on the basis of low prices, high turnover, and high volume. Restaurants: straddle the line between retailing establishments and service establishments. Notes: Nonstore retailing is shopping without visiting a store. The major forms are shown here. On Line Avon