Lecture 1

Question 1

The concept of retailing

Answer 1

All activities by companies to deliver
directly goods, services and
information, through any available
channel to the consumer (end user).

Question 2

Drivers of retail:

Answer 2

people
economy
technology

Question 2

people

Answer 2

o More single households: so less disposable income to spend
o Urbanization: concentrating retail
o Number of 50+: spend on services, not on goods as they have had most phases in their lives like buying a new house or baby’s
o Unemployment rate: relation to sales

Question 3

economy

Answer 3

o Consumer confidence vs willingness to buy
o Consumer confidence vs AEX rate
o Retail sales: non-food retailers are not growing at the same pace as inflation
o Retail sales by sector: i.e., shoes and recreation dipped during covid
o 2019-2022: high inflation

Question 4

technology

Answer 4

o E-commerce share & online sales growth
o The cost of online retailing is way higher than traditional sales
o Decreasing floor productivity

Question 5

Floor productivity

Answer 5

how much sales per square meter of a shop, for online stores this is measured by the square meter of the warehouse

Question 6

Retailing in times of scarcity:

Answer 6

• Scarcity in resources
• Scarcity in employees
• Scarcity in energy
• Scarcity in logistics and distribution
• Scarcity in consumer trust
• Scarcity in disposable income