Retailing

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Retailing
Retailing includes
all the activities
involved in selling
products
or services
directly to final
consumers for
their personal,
non-business use.

Retailer
-Sales come
primarily from
retailing

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Shopper marketing
. using point-of-sale promotions and
advertising to extend brand equity to the
last mile and encourage favorable instore purchase decisions.

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What are the types of Retailers

Wal-mart
Sears
Tiffany

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Convenience Stores

Sheetz positions itself

as more than just a
convenience store.
Driven by its Total
Customer Focus
mission and the
motto, Feel the
Love, Sheetz aims to
provide convenience
without compromise

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What are the types of Retailers

Carry a narrow product line with a deep
assortment (single-line, limited line, or
superspecialty store); Category Killers
Wal-mart
Carry several product lines, with each line
operated as a separate department managed
Sears
by specialist buyers or merchandisers
Tiffany
A relatively large, low cost self-service
operation; grocery and household products;
highest frequency (Out-of home- cooking)
Small stores open 7 days long hours carryig
limited line of high-turnover convenience
products at higher price
Very large stores for routinely purchased
food and non-food items

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Types of Retailers (continued)

1.Corporate Chain
1. Independents off-price outlet
(retail group or single shop)
2. Factory Outlet
3. Warehouse clubs

2.Contractual
Associations
e.g. Franchise (40
% US retail)

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Discussion
Why the number of departments stores is
diminishing in Hong Kong?

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Retail Marketing Decisions

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Retail Targeting and Positioning

By positioning itself strongly

away from Wal-Mart and other
discounters, Whole Foods has
made itself one of the nations
fastest-growing and more
profitable food retailers Whole
Foods Market focuses on
selling high-quality natural
and organic foods

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Why Successful? Differentiation

-Product
Product:: Food,
Food,
grocery
grocery
and
and life-style
life-style products
products
-Price:
Price: Everyday
Everyday low
low price
price
-High-low
High-low pricing
pricing
-Promotion:
Promotion: TV
TV ++ ads
ads
-Distribution
Distribution
-(store
(store atmosphere)
atmosphere)
-Clean,
Clean, well-organized,
well-organized,
-Spatial
Spatial
-international,
international, organic
organic

Product
Product:: Food,
Food,
Price:
Price: Low
Low
-Global
Global sourcing,
sourcing,
-small
small suppliers,
suppliers,
-no
no shelf-space
shelf-space rental
rental fee,
fee,
-Promotion:
Promotion: word-of-mouth
word-of-mouth
-Distribution
Distribution
-(store
(store atmosphere)
atmosphere)
-Wet
Wet market,
market, housing
housing estate,
estate,
-Bright
Bright and
and Simple
Simple

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Shopping Centers Today

Todays shopping
centers are more
about creating
places to be rather
than just places to
buy

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Global Retailing Trends and Developments

Trend #1: New retail forms, shortening retail life cycles,

and retail convergence
(Department store 100 year to reach maturity; Warehouse
store 10 years)

- Wheel-of-retailing
many new types of retailing forms begin as low margin, low price,
lowstatus operations, upgrade services, increase price, become
conventional retails, cycle begins.
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Trend #2: Slow Economy

Trend #2: A slowed economy and tighter consumer spending

Postrecession Economy
- Pay-Less; Target, McDonald
- Add Value
Home Depot: You can do it. We can
help. More saving. More doing.
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Trend #3: Green Retailing

Green: Stores, products, and consumer decisions

e.g. McDonalds new eco-friendly restaurants are designed from the bottom up with a whole new eco-attitude

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Trend #4

Rise of megaretailers

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Trend #5

Growing importance of retail technology

e.g. touch-screen kiosks, customer-loyalty cards,
electronic shelf labels and signs and selfscanning checkout systems.

Global expansion of major retailers

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Growth of Direct and

Online Retailing

The Internet has spawned a whole new breed of shoppers people who just
cant buy anything unless they first look it up online and get the lowdown

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Trend #6

Global expansion of major retailers

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