Retail Management PDF

RETAIL MANAGEMENT Chapter 1: Overview about retail world RULES When Who Why 5W1H How What Where On time Ask...

RETAIL MANAGEMENT Chapter 1: Overview about retail world RULES When Who Why 5W1H How What Where On time Ask – Ask & Ask?? Self-learning at home Switch your phone to Do homework Don’t talk privately silent mode Content What is retail? The role of retail in supply chain management Value-added from retailers The economic and social roles of retailers Retail channels and global distribution system Changes in Distribution channels Retail opportunities: management, entrepreneur Decision process in retail management Activity Spend five minutes writing your responses to the following questions: When is the last time you went to your favorite retailer? What store was it? Maybe you prefer to shop online. Why? Have you wondered about the journey those products take before making it out to the shelves? What is your definition the word “retail” Which company is retailer? What is retailing? Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use A retailer is a business that sells products and/or services to consumers for personal or family use The role of retail in supply chain management Retailers are a key component in a supply chain that links manufacturers to consumers A supply chain is a set of firms that make and deliver goods and services to consumers Wholesalers buy and store merchandise in large quantities from manufacturers and then resell the merchandise (usually in smaller quantities) to retailers Why are retailers needed? Wouldn’t it be easier and cheaper for consumers to cut out the middlemen, the wholesalers and retailers, and buy directly from manufacturers? Because retailers add value and are more efficient at adding this value than manufacturers or wholesalers CONSIDERABLE Supply Chains A supply chain is system of organizations, people, activities, information, and resources that involve transformation in an efficient, nimble, and seamless way Supplier: person providing service (domestic or international) Factory: supplier has raw materials made into products Distribution Center: finished product goes here after leaving factory Regional Distribution Center: local to area with many advantages Retailers Create Value Providing Breaking Holding Providing Assortments Bulk Inventory Services Functions of a retailer Creates value (Assorting, breaking bulk, holding inventory, providing services) Customer convenience Important link in the supply chain Supply of information Risk bearing (Spoilage, natural risks, change in customer’s taste) Financing Introduction of new products Advertising Economic development Challenges in Retailing 1. Inventory: having too much or too little can affect reputation of retailer and perception of consumer 2. Mobile Experience and Engagement: 90% of customers use smartphones while shopping 3. Digital Disruption: 5 stages (need recognition, information search, evaluating alternatives, purchase decision, post-purchase evaluation) The economic and social roles of retailers Corporate Social Responsibility (CSR): The voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations, in addition to the concerns of its stakeholders Role in Developed Economies: 4,3 trillion USD (2011) Employment: 14 million people were employed in retailing in 2012 Retail channels and global distribution system Top 50 Global Retailers 2024 Leading global retailers of 2023 Retail channels and global distribution system Differences in Distribution Channels Changes in Distribution channels Information Systems in Retail Frequently utilized information systems in retail: Inventory Management Software (IMS): tracks inventory levels, orders, sales, and deliveries Customer Relationship Management (CRM): looks at data about current and future customers in hopes of retaining and building relationships (personal profile/details, sales history, communication, feedback) Accounting Information Systems (AIS): system of collecting, storing, and processing data used by decision makers Historical Changes in Retail Pre-1800s: retail was made up of local merchants who provided full service to customers (credit, repairs, etc.) First department store was developed in 1800s, by the 1950s over 4,000 department stores operated, and by 1970s department stores closed and replaced with malls 1990s: Internet impacted retail industry, online shopping became widely popular and still is to this day Retail opportunities: Management Management: People with a wide range of skills and interests needed because retailers' functions include Finance Purchase Accounting Management information system (MIS) Supply management including warehouse and distribution management Design and new product development Retail opportunities: Entrepreneur Entrepreneur: Retailing provides opportunities for people who want to start their own business Some of the world's richest people are retailing entrepreneurs Amazon: Jeff Beros Decision process in retail management The Retail Mix Strategic vs. Tactical Decisions Doing the Right Thing (direction) vs. Doing Things Right (execution) Strategic Decisions Are: ✓ Made Infrequently ✓ Long-term ✓ Require significant investment ✓ Not easily reversed Location, Organization Design, Information and Distribution Systems, Customer Service Checklist for Making Ethical Decisions Misconceptions About Careers in Retailing College not needed Low pay Long hours Boring Dead-end job No benefits Everyone is part-time Unstable environment No opportunity for women and minorities Why You Should Consider Retailing Entry level management positions: department manager or assistant buyer/planner Manage and have P&L responsibility on your first job Starting pay average with great benefits Some retailers pay graduate school No two days are alike Buying and planning for financially analytically oriented Management for people-people THANK FOR LISTENING!