Introduction to the

World of Retailing

By:
Pratibha Jain
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.
Examples of Retailers
 Retailers:
-Sears, Holiday Inn, McDonalds, Amazon.com,
Jiffy Lube, AMC Theaters, American Eagle
Outfitter, FAO Schwartz, Kroger

 Firms that are retailers and

wholesalers that sell to other
business as well as consumers:
-Office Depot, The Home Depot, United Airlines,
Bank of America.
How Retailers Add Value
 Breaking Bulk
-Buy it in quantities customers want
 Holding Inventory
-Buy it at a convenient place when you want it
 Providing Assortment
-Buy other products at the same time
 Offering Services
-See it before you buy, get credit, layaway
Distribution Channel
PPT
PPT1-4
1-4
Distribution
Distribution Channel
Channel
Decision Variables for Retailers
Economic Significance of Retailing

 Over $2.5 trillion in annual U.S. sales

-greater than medical care, housing, recreation
combine
 Employs 17% of population
-about the same as manufacturing and growing
 Management training opportunities
 Entrepreneurial opportunities
Retailing is a High Tech Industry
 - Selling Merchandise over the Internet

 - Using Internet to manage supply chains

 - Analyze POS data to tailor assortments

to stores

 - Computer systems for merchandise

planning
Globalization of Retailing
 Source Merchandise From Around the
World

 Wal-Mart Operates in U.S., China, Mexico,

UK, Germany

 Carrefour has Stores in 25 Countries

Retail Environment Differs Across the
Globe
Wal-Mart’s Retail Mix