Chapter 12
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CHAPTER 12. RETAILING STRATEGY. DEFINITION OF RETAILER. Sells majority of sales to consumers. RETAILING STRATEGY. Current Types of Retailers Retail Revenue Streams Retail Cost Efficiencies Concentrated Niches. CURRENT TYPES OF RETAILERS. Retail stores only Online retailers only

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CHAPTER 12

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Chapter 12

CHAPTER 12

RETAILING STRATEGY


Definition of retailer

DEFINITION OF RETAILER

Sells majority of sales to consumers


Retailing strategy

RETAILING STRATEGY

  • Current Types of Retailers

  • Retail Revenue Streams

  • Retail Cost Efficiencies

  • Concentrated Niches


Current types of retailers

CURRENT TYPES OF RETAILERS

  • Retail stores only

  • Online retailers only

  • Retail stores and online retailers


Retail store innovations

RETAIL STORE INNOVATIONS

IndustryPeriodInnovation

Department Store 1880’s Urban Growth

Supermarket 1930’s Depression

Discounter 1950’s Affluence

Specialty Market 1980’s Breakup of Markets


Department stores

DEPARTMENT STORES

  • Broad product lines

  • Lots of services

  • High markups


Department store examples

DEPARTMENT STORE EXAMPLES

  • Neiman Marcus

  • Dillard’s

  • Nordstrom


Supermarkets

SUPERMARKETS

  • Primarily food products

  • Expanded into non-food products

  • Extensive self-service


Houston supermarkets

HOUSTON SUPERMARKETS

  • Kroger

  • HEB

  • Whole Foods

  • Trader Joe’s


Discount stores

DISCOUNT STORES

  • Compete on price

  • Volume-oriented

  • Limited assortment sizes


Discount store examples

DISCOUNT STORE EXAMPLES

  • Walmart

  • Costco

  • Target

  • Sam’s


Specialty retailers

SPECIALTY RETAILERS

  • Focus on a specific customer market

  • Stock products in depth


Specialty retailers examples

SPECIALTY RETAILERS EXAMPLES

  • Best Buy

  • Container Store

  • Office Depot

  • Ikea


Changes in office supply retailing

CHANGES IN OFFICE SUPPLY RETAILING

Neighborhood Office Supply

Office Depot

Amazon.com

Time iPad


Online retailers only

ONLINE RETAILERS ONLY

Selling on-line


Online retailing examples

ONLINE RETAILING EXAMPLES

  • Warby Parker eyewear

  • Threadless

  • Blinds.com

  • Blue Nile

  • Fanatic, Inc


Affiliates of blinds com

AFFILIATES OF BLINDS.COM

  • Interior design companies

  • Custom home builders

  • Home carpet companies


Online jewelrer blue nile

ONLINE JEWELRER(Blue Nile)

Make the sale

Collect the money

Buy diamonds from

wholesaler

Drop ship from wholesaler

to customer


Retail stores and online retailers

RETAIL STORES AND ONLINE RETAILERS

  • Bonobos and Nordstrom

  • True Fit and Macy’s


U s web sales in 2012

U.S. WEB SALES IN 2012

Amazon$61 Billion

Wal-Mart$8 Billion


Retail revenue streams

RETAIL REVENUE STREAMS

  • Sale of product

  • Credit add-on

  • Service add-on

  • Warranty add-on

  • Trade-in


Retail cost efficiencies

RETAIL COST EFFICIENCIES

ActivitiesCost Savings

Self-Service Reduces sales staff

Supply Chains Reduces logistic costs

Internet Selling Reduces channel costs


Concentrated retail niches

CONCENTRATED RETAIL NICHES

  • Charming Charlie

  • Men’s Wearhouse

  • Hot Mama

  • Buc-ee’s


Retailing trends

RETAILING TRENDS

Small Retailers Large Retailers

Retail Store Orders Internet Retail Orders

Internet Retail Orders Your Home Delivery

Buyers Sellers

(More(Less

Control)Control)


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