© south-western educational publishing goals lesson 1.1 retail businesses describe the methods...

© South-Western Educational Publishing

GOALSGOALS

LESSON 1.1RETAIL BUSINESSES

Describe the methods used to categorize retail businesses

Explain the retail life cycle


Retail

Retail is the sale of goods or services directly to the final customer.

Benefits of Retail Stores include:

1. Individuals able to purchase items they cannot make or generate

2. Manufacturers of products are able to earn a profit


Retail Establishments

Department store Provides a variety of general merchandise

in a single convenient locationDiscount merchandiser

Displays and sells a variety of products at lower prices than other retailers


Retail Establishments

Specialty storeSpecializes in a specific type of

merchandiseWarehouse club/superstore

Self-service retailer sells national brands at a low price


Retail Establishments Wholesale club

Self service retailer offers nationally advertised brand-name goods at wholesale prices

Membership is usually required Factory outlet

Display and sell products they receive from other retails or manufacturers

Catalog Customers place orders by mail, telephone or

internet site


4 Methods of Categorizing Retailers

1. NAICS categories North American Industry Classification System Every establishment that contributes to the US

economy has an NAICS 6 digit code All retail establishment codes start with 44 or 45

2. Establishments A retail business can be categorized by the

number of establishments the business operates A retail store with more than eleven establishments is

known as a chain store


4 Methods of Categorizing Retailers

3. Location Malls, freestanding buildings,

Internet

4. Size Stores can be categorized

according to size (# of employees and sales volumes)


1. Innovation

2. Development

3. Maturity

4. Decline

Retail Life Cycle

DevelopmentDevelopmentDeclineDecline

MaturityMaturity

InnovationInnovation


The Retail Life Cycle

1. Innovation Anything that is new or unique,

making it different from other retail stores

Must have more than a good idea Many businesses fail during this phase



2. Development Sales and profits increase at a

dramatic rate Business becomes more

complicated



3. Maturity As the business matures sales and

customers begin to decline Competition begins to affect store



4. Decline Store will eventually lose customers

and no longer earn a profit. It becomes time to close the

business

© south-western educational publishing goals lesson 1.1 retail businesses describe the methods...

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