retailing professor chip besio cox school of business

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RETAILING

Professor Chip BesioCox School of Business

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RETAILERS ARE REINVENTING THEIR STORES TO MATCH THE WAY YOU WANT TO SHOP!

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RETAILERS LOVE ITWHEN THE MAYOR VISITS!

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THE VALUE OF RETAILING

Retailing

Consumer Utilities Offered by Retailing

• Place

• Possession

The Global Economic Impact of Retailing

• Form

• Time

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Which retailer best provides which utilities?

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The relative size of different types of retailers

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CLASSIFYING RETAIL OUTLETSFORM OF OWNERSHIP

Independent Retailer

Corporate Chain

• Wholesaler-Sponsored Voluntary Chains

Contractual Systems

• Retailer-Sponsored Cooperatives

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CLASSIFYING RETAIL OUTLETSFORM OF OWNERSHIP

• Franchising

Contractual Systems

Business-FormatFranchises

Product-DistributionFranchises

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The top five franchises in the United States

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Self-Service

CLASSIFYING RETAIL OUTLETSLEVEL OF SERVICE

Limited Service

Full-Service

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Stores vary in terms of the breadth and depth of their merchandise lines

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Depth of Product Line

CLASSIFYING RETAIL OUTLETSTYPE OF MERCHANDISE LINE

• Specialty Outlets

• Category Killers

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Breadth of Product Line

CLASSIFYING RETAIL OUTLETSTYPE OF MERCHANDISE LINE

• General Merchandise Stores

• Scrambled Merchandising

Hypermarket

Intertype Competition

Supercenter

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Hypermarkets are popular in Europe and Latin America while supercenters are popular in the U.S.

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For Lands’ End, intertype competition means that there is competition between various dissimilar retail outlets

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Many retailing activities do not involve a store

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NONSTORE RETAILING

Automatic Vending

Direct Mail and Catalogs

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NONSTORE RETAILING

Television Home Shopping

Online Retailing

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GOING ONLINEFor Some Consumers, Shopping is a Game!

Shopping “Bots” find best prices

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NONSTORE RETAILING

Telemarketing

Direct Selling

• Do-Not-Call Registry

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Elements of a retailing strategy

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RETAILING STRATEGYPOSITIONING A RETAIL STORE

Retail Positioning Matrix

• Breadth of Product Line

• Value Added

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The four positioning strategies for retailers

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RETAILING STRATEGYRETAILING MIX

Retailing Mix

• Original Markup

• Maintained Markup

Retail Pricing

Markdown

• Gross Margin

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RETAILING STRATEGYRETAILING MIX

Everyday Low Pricing (EDLP)

Everyday Fair Pricing

Benchmark or Signpost Items

Shrinkage

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RETAILING STRATEGYRETAILING MIX

Off-Price Retailing

• Warehouse Club

• Outlet Store

• Single/Extreme Value Store

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RETAILING STRATEGYRETAILING MIX

Store Location

• Regional Shopping Centers

• Central Business District

Anchor Stores

• Strip Mall

• Community Shopping Center

• Power Center

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RETAILING STRATEGYRETAILING MIX

Retail Communication

• Shopper Marketing

• Image

Merchandise• Category Management

• Marketing Metrics Sales per Sq. Ft. Same Store Sales

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USING MARKETING DASHBOARDSWhy Apple Stores May Be

the Best in the United States!

Sales per Square Foot ($) and Same Store Sales Growth (%)

Same Store Growth (%) =

Store Sales Year 2 ($) Š Store Sales Year 1 ($) Store Sales Year 1 ($)

100

Sales per Square Foot ($) = Total Sales ($)

Selling Area in Square Feet (#)

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THE CHANGING NATURE OF RETAILINGTHE WHEEL OF RETAILING AND RETAIL LIFE CYCLE

Wheel of Retailing

Retail Life Cycle

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The wheel of retailing describes how outlets change over time

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The retail life cycle describes the stage of growth and decline for retail outlets

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FUTURE CHANGES IN RETAILING

Multichannel Retailers

Managing the Customer Experience

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MARKETING MATTERSThe Multichannel Marketing Multiplier

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MAKING RESPONSIBLE DECISIONSGREEN ISN’T JUST A COLOR TO RETAILERS.

IT’S A VALUE!