CH05 Retail institutions by store-based strategy mix Flashcards
strategy mix (p. 111)
the firm’s particular combination of store location, operating procedures, goods/services offered, pricing tactics, store atmosphere, and customer services, and promotional methods
destination retailer (p. 111)
where consumers view the company as distinctive enough to be loyal to it and go out of their way to shop their
wheel of retailing (p. 111)
figure 5-1
retail innovators often first appear as low-price operators with low costs and low profit margin requirements. over time, the innovators upgrade the products they carry and improve their facilities and customer service, and prices rise
scrambled merchandising (p. 113)
when a retailer adds goods and services that may be unrelated to each other and to the firm’s original business
eg. sweaters in a shoe store
retail life cycle (p. 114)
states that retail institutions–like the goods and services they sell–pass through identifiable life stages: intro, growth, maturity, and decline
mergers (p. 116)
involve the combination of separately owned retail firms
diversification (p. 116)
retailers become active in businesses outside their normal operations, by adding stores in different goods/service categories
downsizing (p. 117)
when unprofitable stores are closed or divisions are sold off by retailers unhappy with parformance
convenience store (p. 119)
- a small, well-located, food-oriented retailer that is open long hours and carries a moderate number of items at above-average prices
- average atmosphere and customer service
supermarket (p. 119)
a self-service food store with grocery, meat, and produce departments and a minimum annual sales of $2 million
conventional supermarket (p. 120)
a departmentalized food store with a wide range of food and related product; sales of general merchandise are rather limited
food-based superstore (p. 120)
larger and more diversified than a conventional supermarket but usually smaller and less diversified that a combination store
combination store (p. 121)
unites supermarket and general merchandise in one facility, with general merchandise accounting for 25% to 40% of sales
supercenter (p. 121)
a combo store blending an economy supermarket with a discount department store
hypermarket (p. 121)
- a very large store with a wide range of goods and a large parking lot, typically situated outside a town
- the European institution that did not succeed in the states
box (limited-line) store (p. 121)
a food-based discounter that focuses on a small selection of items, moderate hours of operation, few services, and limited manufacturer brands
warehouse store (p. 122)
a food-based discounter that offers a moderate number of food items in a no-frills setting
specialty store (p. 122)
-concentrates on selling one type of goods or service line
- eg. young women’s apparel
category killer (power retailer) (p. 123)
- aka power retailer
- a large store, typically one of a chain, which specializes in a particular type of discounted merchandise and becomes the dominant retailer in that category
- eg. walmart, what amazon is trying to do
department store (p. 123)
- a large retail unit with an extensive
assortment (width and depth) of goods and services that is organized into separate departments
for purposes of buying, promotion, customer service, and control - eg. hudson’s bay
traditional department store (p. 124)
- merchandise quality ranges from average to quite good
- pricing is moderate to above average
- customer service ranges from medium levels of sales help, credit, delivery, and so forth to high levels of each
full-line discount store (p. 125)
offers a wide range of products like a department store but sells them at lower prices by purchasing in bulk and selling over an extended period
variety store (p. 125)
handles an assortment of inexpensive and popularly priced
goods and services, such as apparel and accessories, costume jewelry, notions and small wares,
candy, toys, and other items in the price range
off-price chain (p. 126)
features brand-name (sometimes designer) apparel and accessories, footwear (primarily women’s and family), linens, fabrics, cosmetics, and/or house-wares and sells them at everyday low prices in an efficient, limited-service environment
factory outlet (p. 127)
a manufacturer-owned store that sells closeouts, discontinued merchandise, irregulars, canceled orders, and sometimes in-season, first-quality merch
membership (warehouse) club (p. 127)
- straddles the line between wholesaling and retailing; it appeals to price-conscious consumers, who must be members to shop
there - eg. costco
flea market (p. 128)
- many retail vendors sell a range of products at discount prices in plain surroundings
- marche aux puces st. eustache
