Types of Retailers: Retailing Management 8E © The Mcgraw-Hill Companies, All Rights Reserved
Types of Retailers: Retailing Management 8E © The Mcgraw-Hill Companies, All Rights Reserved
Types of Retailers: Retailing Management 8E © The Mcgraw-Hill Companies, All Rights Reserved
Types of
Retailers
CHAPTER 2
Types of Retailers
Multichannel Retailing
• Variety (breadth)
• Assortment (depth)
• Services Offered
• Prices and the cost of offering breath and depth of
merchandise and services
Many SKUs
Because the retailer must have backup stock for each SKU
in addition to holding the inventory
• Conventional supermarkets
• 30,000 SKU
• Limited assortment
supermarkets (extreme value
food retailers)
• 2000 SKU
• Offer one or two brands and sizes
• Designed to maximize efficiency and
reduce costs
• Offer merchandise at 40-60% lower
prices than conventional
supermarkets
Efficient
Lower Costs Lower Prices
Distribution
• Department Stores
• Specialty Stores
• Category Specialists
• Home Improvement Centers
• Discount Stores
• Drugstores
• Off-Price retailers
• Extreme Value Retailers
• Competition
• Discount Stores on Price
• Specialty Stores on Service,
Depth of Assortment
• Lower Cost by Reducing Services
• Centralized Cash Wraps
• More Sales
• Customers Wait for Sale
• Focus on Apparel and Soft
Home
• Develop Private Labels and
Exclusive Brands
• Consolidation
• Walgreens, CVS, Rite-Aid
• Competition
• Supermarkets, Discount Stores and
Mail-in orders
• Evolution to a New Format
• Stand Alone Sites with Drive Thru
Windows
• offering more frequent purchase
food items
• Improved systems provide
personalized service
Retailing Management 8e © The McGraw-Hill Companies, All rights reserved. 2 - 31
Category Specialists CHAPTER 2
1
Consumer Business
• Displayed in a warehouse
atmosphere
• Customer Service: How to
select and how to use
merchandise
• Competition focuses on
price, effort to differentiate
and services provided
Ryan McVay/Getty Images
• Close-out retailers
• Offer an inconsistent assortment of brand name
merchandise at low prices
• TJX companies (T.J. Maxx, Marshalls)
• Ross Stores, Burlington Coat factory, Big Lots, Tuesday
Morning
• Intangibility
• Problems in Evaluating Service Quality
• Performance of Service Provider
• Simultaneous Production and Delivery
• Importance of Service Provider
• Perishability
• No Inventory, Must Fill Capacity
• Inconsistency of the Offering
• Importance of HR Management
Retailing Management 8e © The McGraw-Hill Companies, All rights reserved. 2 - 38
Examples of Service Retailers CHAPTER 2
1
• Independent, Single
Store Establishments
• Wholesale-sponsored
voluntary group
• Corporate Retail
Chains
• Franchises