contemp retail managment Flashcards
• How retailers add value
o Offer Services
o Hold inventory
o Provide assortments
o Break bulk
• Retailers role in the supply chain
Retailers are the final place where the customers get lined to the manufacturers
Vertical Integration
o When a comp preforms more then one set of activates in the channel
Backward integration
o when the retailer also preforms distribution and manufacturing activates
♣ Jcpenny
Forward integration
o manufactures undertake retailing activates… selling direct. Manufactures that are also retailers.
♣ Ralph Lauren operates its own store
♣ Large retailers engage in both wholesaling and retailing
Strategic vs tactical decisions
o Stratigic decisions are focusing on the long term
o Tactical is how you are implicating or doing it.
Retail stragety
o Need to identify the the compition
o Identifying the customers
Compition
♣ Inratype comp: Dillards vs JCPennys
♣ Intertype Comp: Allways some kinda of overlap. Dillards vs Wal-Mart
General trends in retailing
o New types of retailers… online
o Globalization
o Growth in services retailing
o Growth in omini shopping by traditional retailers
o Increased use of technology to reduce cost, increase value delivered
Types of retailers
General Trends Types of Retailers Retail Mix Assortment Services General Merchandising Retailers Careers
retail mixes
o Variety- breth of merch… number of cataglories
o Assortment – depth of merch… number of skus
Omniretailer
The Multichannel Retailer
benefits of stores
♣ Touching and feeling merch ♣ Personal service ♣ Risk reduction browsing ♣ Immediate gratification ♣ Cash payments
benefits of catalogs
♣ Safety ♣ Convenience ♣ Ease of use ♣ Think about what you are doing ♣ Places away from malls
benefits of catalogs
♣ Safety ♣ Convenience ♣ Broad and Deep Selections ♣ Extensive and timely information ♣ Personalization
benifits of multichannle
- low cost
- increassd assortment
- current information
• Elements in Retail Strategy
o Target Market
o Retail Format
- Sustainable Competitive
Advantage
• Criteria in selecting a target market
o Want it to be large and growing
o Little competition
o More profits
o Consistent with competitive advantage
• Sources of Sustainable Completive Advantage
♣ location ♣ customer loyalty ♣ customer service ♣ exclusive merch ♣ low-cost supply chain ♣ information systems ♣ buying power with vendors ♣ committed employees
Less sustainable competitive advantage
♣ Better computer’s ♣ More employees ♣ More merch ♣ Greater assortment ♣ Lower prices ♣ More advertising ♣ More promotions ♣ Cleaner stores
• Customer Loyalty
o Way to keep the customers coming back and keeping the attention on them
♣ Points
♣ Credit card
• Branding
o Can create emotional attachments
o Positioning is ensuring that they think of the brand first
• Vendor Relationships
o Low cost- efficiency through coordination ♣ Electronic data interchange ♣ Collaborative planning o Exclusive sale of desirable o Special treatment
• Human Resources
o Strategies to recruit and retain employees
• Distribution and Info System
o Creates better service
• Growth Strategies
o Market expansion
o Market penetration
types of locations
- Unplanned locations
- Planned locations
- Gross leasable area
Unplanned locations-
do not have centralized management that determines what stores will be in a development.
Planned locations
-the shopping center and/or manager makes and enforces policies that govern store operations.
Gross leasable area
Total floor area designed for the retailer’s occupancy.
Mixed Use Developments (MXDs)
Combine several different uses into one complex, including shopping centers, offices, hotels, residential complexes, civic centers, and convention centers.
o Free standing sites
♣ Not part of a mall or anything
o City or town location
uptown westerville
♣ Lifestyle Center
Usually upscale stores an expensive restaurants
♣ Inclosed Mall
polaris
o Outlet Centers
Destination
o Power Center
♣ Huge stores
o Mixed Use Developments
♣ More the norm
♣ Malls turning into this
♣ Nit just shopping
o Theme/ Festival Centers
♣ In a way these are pop up shops
♣ Holidays
Big data elements
- volume
- velocity
- variety
Big data volume
lots and lots of GBs
big data velocity
how fast they can prosses it
big data variety
where they are getting the data (diffrent channels)
Data anyaliss
data alone has no meaning unless they are analysized
customer service
The set of activities and programs undertaken by retailers to make the shopping experience more rewarding for their customers. These activities increase the value customers receive from the merchandise and service they purchase.
Advantages of customer service
keep customers returninh
customer service approaches
- Personalized Approach
- Greater benefits to customers
- Greater inconsistency
Higher cost - Standardized Approach
-Lower cost
-High consistency
-Meets but does not exceed expectations
Customer Relationship Management (CRM)
A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty with a retailer’s most valuable customers.
