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OFF-PRICE RETAILERS Off-price retailers sell clothing and accessories from major-label brands at a significant discount Take advantage of overruns, canceled orders, and forecasting mistakes made by their counter-parts in the full-price retail sector.
OPPORTUNITIES: • • • • • • Overruns Surplus or excess inventory Cancelled orders Forecasting mistakes Little damages Unwanted inventory
Three Types of Off-Price Retailers
.TJX is the parent company of 8 different off-price retail chains: T. Marshalls. In total TJX operates 2. England and Ireland. TJX Companies . HomeSense.J.INDEPENDENT OFF-PRICE STORE: • Independent off-price retailers are either owned and run by entrepreneurs or are divisions of larger retail corporations.K. most large off-price retailer operations are owned by bigger retail chains Three Big Off-Price Store in the U.743 stores in the United States. HomeGoods. Wright and Bob's Stores.J. Although many off-price operations are run by smaller independents. T. Winners. Canada. Maxx A. Maxx.S.
the off-price retail concept was reconfigured for the Philippine market and packaged into smaller and more convenient store locations. Big Lots (BIG) . ROST operates two chains: Ross Dress for Less (Ross) and DD's Discounts.Inspired by the outlet store concepts in the US and Europe. Ross. such as TJ Maxx.third Largest Off-Price Store in the United States. Marshalls and the like.second-largest off-price retailer in the United States. Specifically. it is a closeout retailer. Ross Stores (ROST) . It sells everything from food and clothes to furniture and appliances. TOPS (The Off-Price Store in the Philippines) . .
Sam's Club. usually selling a wide variety of merchandise. In the Philippines. a division of WalMart. It was incorporated in January 1975 by Chinese-Filipino entrepreneur Jimmy Gow to operate Uniwide commercial shopping . As of 2010. in which customers are required to buy large. the Philippines. mistakes and overruns WAREHOUSE CLUBS A warehouse club is a retail store. Uniwide Sales. four warehouse club chains operate in the US.TRENDS AND FORCES THAT AFFECT OFF-PRICE MARKET: • • • • Fashion is not the key variable in Off-price Retail Off-price Retail is Growing Faster than its Full-price Counterparts Off-price Companies Depend on Manufacturing Mistakes for their Product Supply Cost Pressure on the Industry is Building ADVANTAGES: Cheap Major Label Brand Product Heavy Discounts DISADVANTAGES: Often are damaged. Inc. which makes these clubs attractive to both bargain hunters and small business owners. Costco. and FedMart. wholesale quantities of the store's products. BJs. The concept is similar to the consumers‘ cooperative supermarkets found in Europe. we have Uniwide Sales. was one of the retail operators in Metro Manila. Inc.
After some time. • • • • • HISTORY 1930 .000 employees. Robinsons Malls and Ayala Malls.Outlet malls first appeared in the Eastern United States. Outlets offer prices that are consistently lower by 30 to 70 % or more than those you would find at a regular retailer The invention of the factory outlet store is often credited to Harold Alfond. . A store attached to a factory or warehouse. Uniwide has about 2. which saves additional money since they can operate directly from a factory or warehouse. usually it is still completely usable. Handles excess or irregular merchandise and has a large variety of store factory specific locations. The price is lowered and the item comes more directly to the buyer from the seller. Other factory outlets are operated entirely online. Plaza Fair and Isetann Department Store but lagged behind SM Supermalls. and there is no need to pay the cost of running a brick and mortar store. It is set to be close down by the order of Securities and Exchange Commission.centers such as the lease of commercial spaces within the compound of their malls and department stores. Ever Gotesco Malls. but is not able to sell at a regular retailer so it was sent to an outlet store. the audience expanded to non-employees as well. It has two branches.Started to offer damaged or excess goods to employees at a low price. OUTLET STORE OR FACTORY OUTLET • • • • Is a brick and mortar or online retail store in which manufacturers sell their stock directly to the public. The quality of the products that you will find at an outlet store varies. The competing retailers of the 70s and the 80s are: COD Department Store. Of retail business that sells things directly from a manufacturer to the consumer. founder of the Dexter Shoe Company.
Pennsylvania.000 square feet of retail space.000 feet. 1980s and 1990s . 2003 . Able to see the product and check it out before you buy it. Direct selling .The primary purpose of outlet stores was to dispose of excess or damaged goods. The average outlet mall is opened with between 100.1936 . Outlet shopping online you will be able to shop quickly at a number of different sites.Outlet malls experienced strong growth. and television marketing programs. Generally of good quality and they are always real name-brand products. catalog sales. Advantages: • • • • Products are usually on sale.000 to 600. 1974 . Disadvantages: • • Do not feature very new products or fashions. It includes such services as vending machines. The average outlet mall has an area of 216. direct-to-home selling.Vanity Fair opened up the first multi-store outlet center in Reading.Outlet malls generated $15 billion in revenue from 260 stores nationwide. TYPES OF NON-STORE RETAILERS Direct marketing. telemarketing. 1970s . mail order.Anderson-Little (a men's clothing brand) opened an outlet store independent of its existing factories.000 to 200. Space is limited! NON-STORE RETAILERS: The selling of goods and services without establishing a physical store is known as NonStore Retailing.000 feet. This can gradually increase to up 500.
DIRECT MARKETING: Using print or broadcast advertising to contact consumers who in turn. Advantages: • • • • Shopping convenience. and ask them to purchase by mail or telephone. Automated Vending Telemarketing Online Retailing/E-tailing. at their workplace and . Forms of direct marketing include: Direct mail . Catalog retailing . Televised shopping . which are TV commercials that run for 30 minutes or even longer on an entertainment channel. Consumers must place orders without seeing or touching the actual merchandise.in which various categories of products are promoted on dedicated TV channels and through infomercials.in which firms mail letters. Price changes and new products can be announced only through supplementary catalogs or brochures. Low operating expenses. Disadvantages: DIRECT SELLING The marketing of consumer goods and services directly to consumers on a person-toperson basis. generally in their homes or the homes of others. brochures and even product samples to consumers. Future is difficult to forecast.in which companies mail catalogs to consumers or make them available at retail stores. buy products without visiting a retail store. Costly and must be prepared long before they are issued.
Inc. ADVANTAGES: For the Direct sellers: • Possibility to establish and to run own business at minimum cost/low risk. Direct selling occurs in two primary ways: on a one-to-one basis and on a party-plan basis. • Large range of products available. . • Convenient flexible earning opportunities. and home care markets. • Spouses or family members can be partners in business (family business). maintaining and promoting the highest global standards for responsible and ethical conduct. Facilitating interaction among direct selling executives on issues of importance to the industry. Serving as a trusted global resource for information on direct selling. World Federation of Direct Selling Associations (WFDSA) is a non-governmental. voluntary organization globally representing the direct selling industry as a federation of national Direct Selling Associations. • Adequate training and support from companies. Its goals are: Developing. • No formal qualifications required.other places away from permanent retail locations. Advocating the industry's positions and interest with governments. beauty. household and personal care company that sells products through representatives in over 140 countries across the world. media and key influencers. known simply as Avon is an American international manufacturer and distributor of beauty. primarily in the health. • Social contact and personal recognition. Avon Products. • Adjustable opportunities ranging from part-time to full-time activity. Largest Direct Selling Companies Amway (short for American Way) is an American multinational directselling company using multi-level marketing techniques that sells a variety of products. • Flexibility to choose working hours.
beverages. The first modern coin-operated vending machines were introduced in London. Texas at its Dallas convention displayed its "talking" vending machine. • Right to withdraw the purchase within a given period (additional protection). a firstcentury engineer and mathematician. Ussery Industries of Dallas. England in the early 1880s. Origin and Increasing Specializations • The first reference to a vending machine is in the work of Hero of Alexandria. cologne. lottery tickets.S. • 50s-70s was an era of life insurance vending machines at the airports. cigarettes. the machine said "thank you" and added a one-liner voiced by comic Henny Youngman. consumer products and even gold and gems to customers automatically. • In December 1970. • Direct contact with the seller. With insertion of a coin. after the customer inserts currency or credit into the machine. was built in 1888 by the Thomas Adams Gum Company. alcohol. the Venda Talker. DISADVANTAGES: • Expensive • Time Consuming • Limited Coverage • Inconvenient or Obtrusive AUTOMATED VENDING Vending Machine is a machine which dispenses items such as snacks. . • Guarantee and after sales service. dispensing post cards. • Personalized delivery at home.For the Consumers: • Opportunity to try and test the products. • The first vending machine in the U. • Only in 1920s do we see soft drinks and cigarettes put inside the vending machine for the first time. • Vending machines became commonplace during the industrial revolution. selling gum on New York City train platforms. • Tailored made demonstration and consultation in a friendly environment. • Flexible buying hours.
DISADVANTAGES: • Stressful career choice. chargeboxes entered the market with a big success. either released first. . credit cards and cub memberships. or into a cup. • Usually ends with dead leads. with the increasing popularity of mobile devices. or put in by the customer. TELEMARKETING: Sometimes called telephone selling. telemarketing refers to a sales person initiating contact with a shopper and closing a sale over the telephone. • Hard to establish trust between sellers and buyers. • Flexible schedule.• During the last decade of 20th century. or turning of a knob. • Prone to fraud. a product may become available by: • The machine releasing it. or • The unlocking of a door. so that it falls in an open compartment at the bottom. Many products that can be bought without being seen are sold over the telephone. MECHANICS: After paying. magazine subscriptions. drawer. Examples are pest control devices. ADVANTAGES: • Can be done at home.
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