Questions and Answers
What are some general trends in retailing?
What is service retailing?
Investing more in experiences rather than products, primarily selling services.
What is omnichannel retailing?
A multichannel approach that provides a seamless shopping experience.
What are some retailer merchandise characteristics?
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What is variety (breadth) in retailing?
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What is assortment (depth) in retailing?
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What is a stock keeping unit (SKU)?
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What is a retailer mix?
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What are the two types of merchandise retailers?
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What are the characteristics of supermarkets?
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What are some trends in supermarket retailing?
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What are the characteristics of a supercenter?
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What are the characteristics of warehouse clubs?
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What are the characteristics of a convenience store?
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What are some characteristics of department store retailing?
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What are soft goods?
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What are hard goods?
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What are some issues department store retailing is facing?
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What is a fast-fashion retailer?
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Study Notes
General Trends in Retailing
- Emergence of new retail types, like Nordstrom, enhancing competition.
- Globalization example: Levi’s expanding reach.
- Significant growth in services retailing, focusing on experiences over products.
- Rise of omnichannel retailers, integrating online and offline shopping.
- Increased technology usage for cost reduction, exemplified by Kohl's kiosks.
Service Retailing
- Focus primarily on selling services rather than physical products.
- Examples include travel agencies, hair salons, hotels, fitness centers, and healthcare providers.
- Emphasis on creating memorable customer experiences.
Omnichannel Retailing
- A multichannel sales strategy aiming for a seamless customer shopping experience.
- Customers can transition between online platforms and physical stores effortlessly.
Retailer Merchandise Characteristics
- Variety refers to the breadth of different merchandise categories available.
- Assortment denotes the depth of items/styles within a specific category.
- Stock Keeping Unit (SKU) is a unique identifier for each individual item of merchandise.
Variety (Breadth)
- Represents the number of different merchandise categories offered by a retailer.
- Can be categorized as broad (e.g., men’s and women’s products) or shallow.
Assortment (Depth)
- Indicates the diversity of products within a particular merchandise category.
- Can vary from shallow (limited styles) to deep (extensive selection, e.g., types of shoes).
Stock Keeping Unit (SKU)
- Each SKU is a distinct unit of merchandise, often identified by a unique code.
Retailer Mix
- Retailers combine various elements in their retail mix:
- Merchandise variety and assortment.
- Service offerings and store design.
- Pricing strategies and promotional communication.
- Example: BJ's uses location, pricing, and merchandise as part of its retailing strategy.
Types of Merchandise Retailers
- Food Retailers include supermarkets, supercenters, warehouse clubs, and convenience stores.
- General Merchandise Retailers comprise department stores, specialty stores, drugstores, and off-price retailers.
Supermarkets Characteristics
- Conventional supermarkets rely heavily on perishables, constituting 30% of sales with up to 30,000 SKUs.
- Limited assortment supermarkets offer fewer SKUs (1500-2000) with lower prices by maximizing efficiency, such as Aldi.
Trends in Supermarket Retailing
- Facing competition from supercenters, warehouse clubs, convenience stores, and extreme price retailers.
- Changing consumption patterns influenced by lifestyle shifts, with increased eating out and meal solution services.
Characteristics of Supercenters
- Large retail spaces (185,000 sq ft) combining supermarkets with discount stores for one-stop shopping.
- High incidence of impulse purchases, with well-known examples including Walmart and Super Target.
Warehouse Clubs Characteristics
- Limited assortment of food and general merchandise at low prices, catering to individuals and small businesses.
- Operates in low-cost locations with minimal service and simple store designs.
Convenience Store Characteristics
- Local market tailored assortments for enhanced shopping convenience.
- Emphasis on fresh and healthy food options, quick service, and accessibility.
Department Store Retailing Characteristics
- Offers a broad variety of products with deep assortments, and above-average customer service.
- Merchandise organized into distinct departments for easier navigation.
Soft Goods
- Refers to non-durable consumer goods like clothing and cosmetics.
Hard Goods
- Refers to durable consumer products including appliances, furniture, and electronics.
Issues Facing Department Store Retailing
- Intense competition from discount and specialty stores, which outperform in price and service.
- Fast-fashion retailers compel traditional stores to adapt quickly to trends.
- Customers often delay purchases for sales, affecting sales consistency.
Fast-Fashion Retailers
- Characterized by rapid design turnover, capturing trends quickly to appeal to consumers.
- Notable brands include H&M, Zara, and Forever21, which prioritize style at competitive prices.
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Description
Explore the latest trends in retailing, including the emergence of new retail types, the rise of omnichannel strategies, and the focus on service retailing. Learn how globalization and technology are shaping the retail landscape and emphasizing customer experiences over products. This quiz covers key concepts and examples to enhance your understanding of modern retailing dynamics.