Retailing in Europe

Similarities

• Self Service Merchandising

• Rising Market Share of large Chains

 Differences
• Store Size

• Scrambled Merchandising

• Customer Service

• Malls versus Central Business Districts

• Store hours
Future of Retail in Europe
• EU suffers of four
symptoms

– Incapacity to find common

identity
– Declined Population
– Huge unemployment
– Lack of vision
Future of Retail in U.S
• Retailing has improved since 2009
recession

• GAP and Old Navy Store sales fell as

shelves were bare

• $10 billion is the amount of Super Bowl

related consumer spending that was
predicted by the National Retail
Federation (NRF)

• BMW invested $1 billion in the U.S. in

order to make the "built in
• America" cars that it advertised during
Super Bowl XLV.
Comparison of Retailing
• In the recent past, retailing
pattern of U.S and Europe had
been similar .

• Global Recession has impacted

the retailing sector badly.

• The future of developed nations

is looking bleak.

• The retailers have started to go

global by looking into
developing countries
What are the Retailing Practices
followed by European Countries
over United States ?
 Independent & Exclusive Stores
• Individually owned and operated retail shop
• Exclusive Shop for a Product

Advantages
• The size of the product range
• Improved quality
• usually quite small in Store Size
• no unnecessary stuff
• can find what we want very quickly
Scrambled Vs Narrow Product Mix
• US – More number of Scrambled
Merchandising.
• Europeans prefers Product focused Shops.
Advantages:
• Larger Selection
• Freshest Products
• Improved Customer Service
 Shopping Malls instead of Central Business
Districts
Central Business Districts
• Expense very high
• More competition
• Retailers prefers City Centers
Shopping Malls by Single Retailer
Europeans prefers Shopping Malls
 Working Hours
United States
• Seven-day Store Openings
• Extended Hours of Operation
Europe
• Most of the Shops-not Open on Sunday
• Closes after 1 PM on Saturdays
• Only on Week Days
• Targets Evening Visitors on Week days
 Consumer decision process.
• Problem definition
Current state vs desired state
• Information search
Internal search: persons memory, routine
purchases.
External search : friends, peers, public sources.
• Alternative evaluation
Evoked set- collection of well known brands.
In this stage screening(ie, minimal options)
• Purchase decision
Difference exists between actual purchase and
purchase decision.
• Post purchase stage.
Cognitive dissonance- a psychological state
( have we made a write/worth purchase?)
Perfomance</>/= expectation? Its an equation
for evaluation and future intension for purchase.
 Difference beween us and europe.

• US- high brand loyals, price is immaterial.

• European- price consious(middle in retail
wheel)
• Us – scrambled merchandising popular and
implemented mostly in us.(one stop shop)
• European-separate trips, they feel they get
fresh products and better customer service by
doing so.
• European: Decision making- browse a lot.
US view European's as slow but European's feels
browsing as an opportunity to get the best.
US- success of malls at the expense of central
business units.
European-popularity of central business districts.
Store hours: us-all day opened. Europe-holiday on
weekends.
 Wrap up
• The difference in decisions exists according to the
customers:
• Culture
• Sub culture
• Income levels
• Social groups influence
• Situation determinants.
• generally Varies from people to people and region
to region.
 How could a European retailer utilize self
service merchandising ?
Self service is the practice of serving oneself, usually when
purchasing items.

• It helps to reduce retail personnel cost and increases the

impulse purchase

• The cost involved in appointing the retail personnel can be

used in a fruitful way

• The early vision was a self-service kiosk that the customer

would access to navigate, answer questions, and move to the
checkout counter as fast and efficiently as possible.
How do retailers benefit?
•    Better retail placement
•    Better product information for customer
•    Real-time retail performance feedback
•    Reduced retailer overhead costs to sales

How does - consumer, retailer, and brand marketer – benefit?

•    Product knowledge
•    Brand trial & loyalty
•    Convenient customer service
•    Better customer experience