Difference between net sales and cost of goods sold Operating expenses: All stores in a retail chain stock the same merchandise Optional stock list: They have harder-working, more motivated employees They can focus and tailor their efforts and merchandise in one trade area LO 2 29 Number of Outlets Standard stock list: Anything that affects how consumers choose to spend money affects the retailing industry Retailers must consider the changes in the external environment LO 1 6 E-Tailing The great unknown for retail managers will be the ultimate role of the Internet Bricks-and-mortar retailers: They do not reflect all retail activity Comparisons between years may not be accurate LO 2 28 Number of Outlets Retailers with Perspectives on retailing units are a stronger competitive threat because they can: Operates on a high gross margin percentage and a high rate of inventory turnover LO 2 36 Location The most significant of the new nontraditional shopping locations could be the one which combines culture with entertainment or shopping LO 2 37 Size The reason for classifying by size is that the operating performance of retailers tends to vary according to size With advances in technology, using classification of size is unclear LO 2 38 Exhibit 1.
The number of times per year, on average, that a retailer sells its inventory High-performance retailers: Each store in a retail chain is given the flexibility to adjust its merchandise mix to local tastes and demands LO 2 30 Number of Outlets Channel advisor or channel captain: Operating costs as a percentage of sales Costco, a retailer, seeks to boost store traffic by lowering prices on key products LO 1 14 Is Wal-mart good for America?
Operate out of a physical building M-tailing - Shoppers use their smartphones to purchase merchandise and services Apps - Digital services that can be downloaded Fastest growing form of e-tailing LO 1 7 E-Tailing Growth of the Web 2.
Expenses the retailer incurs in running the business other than the cost of the merchandise LO 2 34 Margins Versus Turnover Inventory turnover: The fluctuating birthrate The growing importance of the 70 million Generation Y consumers The move of Generation X into middle age LO 1 17 Demographic Shifts The beginning movement of the baby boomer generation into retirement The increasing number of women relative to men graduating from college and concurrent rise in unemployment among men relative to women LO 1 18 Demographic Shifts Successful retailers must: Institution in the marketing channel who is able to plan for and get other channel institutions to engage in activities they might not otherwise engage in Large store retailers are able to perform the role of channel captain LO 2 31 Number of Outlets Private label branding: Rent Inventory costs, and Labor costs.
Measure of profitability derived by dividing gross margin by net sales Gross margin: Spread many fixed costs over a larger number of stores Achieve economies in purchasing Advantages of single-unit retailers: Department stores and Category killers.
The retailing career path that involves responsibility for: Two retail formats that have recently seen a significant decrease in average store size and a decrease in number of stores are: Consists of the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer Any firm that sells a product or provides a service to the final consumer is said to be performing the act of retailing What trends do you see in Retailing?
Is the category killer dying? Exists when a retailer handles many different and unrelated items It is the result of the pressure being placed on many retailers to increase profits LO 1 22 Store Size Retailers realized that having supersized stores increased several major costs:Learning Objectives Explain what retailing is and why it is undergoing so much change today Describe the five methods used to categorize retailers Understand what is.
Chapter 1 Perspectives on Retailing Learning Objectives Explain what retailing is and why it is undergoing so much change today. Describe the five methods used to. Perspectives on retail and consumer goods, Number 3 June 1, – Our third edition addresses topics that are top of mind for consumer-sector executives worldwide.
Retailing and consumer patronage behavior constitute fascinating research areas within the field of marketing. In one of the most comprehensive analyses of global online retailing carried out to date, the inaugural Global Perspective on Retail report examines online retailing and looks at the technological infrastructure, regulatory environment and size of the retail and online market in more than Chapter 1 Perspectives on Retailing Overview: In this chapter, we acquaint you with the nature and scope of retailing.
We present retailing as a major economic force in the United States and as a significant area for career opportunities.Download