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Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
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General Trends in Retailing
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■New Types of Retailers
■Increased Concentration
■Globalization
■Growth In Services
Retailer
■Demise of Pure
Electronic Retailers (Webvan, eToys, etc)
■Growth in Use of
Multi-Channel Retailing by Traditional Retailers
■Increase Use of
Technology to Reduce Cost; Increase Value Delivered
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New Types of Retailers
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■Category Specialists
-PETsMART
-Bed,
Bath and Beyond
■CarMax and Auto Nation
■Netflix, eBay,
Priceline, Travelocity
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Types of Retailers
■Retailers Use Different Retail Mixes |
-merchandise: variety (breadth) / assortment (depth) -services -store design, visual merchandising -location -pricing ■Infinite Variations ■Some combination of retail mixes satisfy the needs of significant segments and persist over time. |
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Variety
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(breadth) /
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Assortment
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(depth)
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Merchandise Offering
Variety (breadth of merchandise): Assortment (depth of merchandise): |
Wide vs. narrow
- The
number of merchandise categories......deep
vs. shallow
-the number
of items in a category (SKUs)
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Stocking a deep and broad assortment is
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Costly for retailers.
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Many SKU's lead to inventory investment cost ^ because
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Because the retailer must have backup stock for each SKU
in addition to holding the inventory |
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Types of Merchandise Retailers
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Food Retailers
General Merchandise |
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Department Stores
Specialty Stores
Discount Stores
Category Specialists
Off-Price Retailers
Warehouse Clubs
Value Retailers
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General Merchandise
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Mom and Pop Stores
Convenience Stores Supermarkets Supercenters |
Food Retailers
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Channel preference for food
shopping channel where grocery purchasers do most of their food shopping
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■Supermarkets - 56%
■Supercenters - 23% ■Warehouse Clubs - 4% ■Convenience Stores - |
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■Conventional supermarkets
n??? SKU
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30,000
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N2000 SKU
nOffer one or two
brands and sizes
nDesigned to maximize
efficiency and reduce costs
nOffer merchandise at
40-60% lower prices than conventional supermarkets
Save-A-Lot, ALDI (German’s Wal-Mart
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■Limited assortment supermarkets (extreme
value food retailers)
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provides quality merchandise at low prices by reducing its assortment in order
to control store operating expenses
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ALDI: German’s Wal-Mart
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