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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

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)