Retail Industry Quiz

A large retail store that sells a wide variety of food and household goods.

A company that owns and operates a large network of supermarkets, often with different formats like convenience stores, hypermarkets, and superstores.

A type of supermarket that focuses on offering a wider range of products, often including non-food items like clothing, electronics, and home goods.

A type of supermarket that combines a large grocery section with a discount department store.

A large supermarket that emphasizes value and low prices, typically carrying fewer product options but still offering a wide grocery selection.

A small supermarket that focuses on convenience and offers a limited selection of products, often located in urban areas or near gas stations.

A type of supermarket that emphasizes low prices and often carries a limited selection of products, typically focusing on essential items like food and household goods.

A type of supermarket that also sells pharmaceutical products, often including a pharmacy counter and prescription services.

Zara's ability to quickly adapt its product offerings to changing fashion trends.

Zara owns its own dyeing company, allowing it to delay fabric coloring until popular colors are identified.

Zara produces a large percentage of its clothes internally, giving complete control over production.

Zara keeps its manufacturing, design, and warehousing operations concentrated in Galicia, Spain.

Zara prioritizes smaller production batches to quickly respond to changing fashion trends.

Zara's communication structure allows designers to quickly learn about new trends in the market.

Zara's ability to quickly adjust its manufacturing process to produce new designs, minimizing delays.

Zara's strategy of not overproducing any particular style allows for quick incorporation of new trends.

Breaking down large orders into smaller, individualized packages to make ordering more accessible.

A metric that evaluates a company's profitability by dividing gross margin by the average inventory balance.

A measure of how effectively a company uses its physical space to generate profits, calculated by dividing gross margin by the square footage of the store.

Focusing on minimizing inventory throughout the supply chain, often through just-in-time production or lean manufacturing techniques.

A strategy for retailers to increase sales by making their products easily accessible to customers through convenient store locations or online platforms.

The process of designing and developing products in-house, rather than outsourcing them to external companies.

A management style that emphasizes efficiency and cost reduction in all aspects of the business, typically through frugal practices and tight control over spending.

A supply chain strategy that prioritizes flexibility and responsiveness to changes in customer demand, often through vertically integrated production facilities and partnerships with suppliers.

A retail strategy that focuses on offering products at low prices with high turnover, aiming to achieve profitability through volume sales.

A retail strategy where the business emphasizes low costs of production and operations, often by minimizing overhead expenses, efficient sourcing, and streamlined logistics.

Zara's target customer is a fashion-conscious, young, female shopper who values new and exclusive clothing but is also price-sensitive.

Zara's retail model emphasizes quick delivery and a wide variety of fashionable products, catering to the rapidly evolving fashion preferences of its target market.

Zara's strategy of rapid product turnover relies on flexible manufacturing practices that allow the company to adapt quickly to changing fashion trends and consumer demands.

Zara defies conventional retailing practices by prioritizing small-batch production, rapid product innovation, and tight control over logistics and ordering, allowing for quick adaptation to changing fashion tastes.

Zara's high-cost, seemingly contradictory retailing model thrives through its seemingly high-cost strategy, generating significant revenue through its fast-paced product turnover and its ability to cater to the ever-changing fashion needs of its target market.

Zara's vertically integrated system helps manage costs, ensure quality, and maintain control over the entire value chain, enabling quicker response to market demands and optimization of production and distribution processes.

Independently owned and operated firms that buy and sell products, holding ownership and operating through warehouses to distribute goods.

The practice of a company selling products to another intermediary, typically a retailer, who then sells them to consumers.

The practice of a company selling products directly to consumers who utilize the product.

Trade associations that support and advocate for the interests of wholesale distributors.

Reports that highlight potential improvements and dangers within the industry, often created by trade associations.

The ownership of goods by wholesale distributors, allowing them to set prices and control distribution.

The claim that wholesale distributors are facing an imminent decline or closure.

The argument that reports on wholesalers may unintentionally signal a decline in the industry.

The process of combining smaller, less efficient businesses into larger, more efficient ones, often through mergers and acquisitions. This creates a major shift in the industry, leading to economies of scale, and reducing competition.

The ability of a larger company to produce goods or services at a lower cost per unit because of increased efficiency and economies of scale. This is a key driver of industry consolidation.

The process of changing fundamental aspects of an industry's operations using technology and automation. This often leads to significant improvements in efficiency, cost reduction, and customer service.

The use of technology to improve operational processes such as picking, order processing, billing, inventory control, and delivery route scheduling. Efficiency and accuracy increase significantly.

The advantages that wholesalers gain by adopting IT systems, such as barcoding, scanning, and electronic order processing, which eliminate manual processes and improve accuracy and speed.

The ability of wholesalers to use data collected from IT systems to provide valuable insights to their customers, such as inventory management advice, display recommendations (planograms), and quick price updates.

The process of acquiring companies to achieve critical mass and leverage economies of scale. This is often driven by the need to amortize large investments in technology and infrastructure.

The change in an industry's structure caused by massive consolidation where a few large firms dominate. This can lead to increased market power and reduced competition.