CH 11 Retailing and Wholesaling

BUSI 2208 Dr. Irene Lu

Topics Outline

1. Major types of retailers

2. Major retailer marketing decisions
3. Major types of wholesalers and their marketing
decisions

BUSI 2208 Dr. Irene Lu

 Topic 1

Types of Retailing

BUSI 2208 Dr. Irene Lu

Retailing: Connecting Brands with
Consumers

• Activities involved in selling goods or services directly

to consumers for their personal use
– _Retailer_: Business whose sales come primarily
from retailing

BUSI 2208 Dr. Irene Lu

The Shifting Retailing Model

• _Omni- channel__ retailing: Creating a seamless

cross-channel buying experience that integrates in-
store, online, and mobile shopping
• The boundaries between in-store and online retailing
are rapidly blurring.

BUSI 2208 Dr. Irene Lu

Types of Store Retailers

• Retailer classification can be based on

– Amount of service offered
– Breadth and depth of the product lines
– Relative prices charged
– Way they are organized

BUSI 2208 Dr. Irene Lu

Amount of Service
Self-service retailers
• Serve customers who are willing to perform their own locate-
compare-select process
Limited-service retailers
• Carry more shopping goods about which customers need
information
• Provide more sales assistance
Full-service retailers
• Carry more specialty goods
• Assist customers in every phase of the shopping process

BUSI 2208 Dr. Irene Lu

 Major Store Retailer Types
Type Description Examples
Specialty A store that carries a narrow product line with REI, Sunglass
Store a deep assortment, such as apparel stores, Hut, Sephora
sporting-goods stores, furniture stores,
florists, and bookstores.
Department A store that carries several product lines— Macy’s, Hudson’s
Store typically clothing, home furnishings, and Bay, Holt
household goods—with each line operated as Renfrew
a separate department managed by specialist
buyers or merchandisers.
Supermarket A relatively large, low-cost, low-margin, Sobeys,
high-volume, self-service operation designed Superstore,
to serve the consumer’s total needs for Safeway
grocery and household products.
Convenience A relatively small store located near 7-Eleven, Circle
Store residential areas, open 24/7, and carrying a K, Couche-Tard
limited line of high-turnover convenience
products at slightly higher prices.
BUSI 2208 Dr. Irene Lu
Type Description Examples
Superstore A very large store that meets consumers’ total Walmart
needs for routinely purchased food and nonfood Supercentre,
items. This includes supercentres, combined (discount store);
supermarket and discount stores, and category Best Buy,
killers, which carry a deep assortment in a Staples, Bed
particular category. Bath & Beyond
(category killers)
Discount A store that carries standard merchandise sold at Walmart, Target,
Store lower prices with lower margins and higher Kohl’s
volumes.
Off-price A store that sells merchandise bought at less-than- Mikasa (factory
retailer regular wholesale prices and sold at less than outlet); Winners
retail. These include factory outlets owned and (independent off-
operated by manufacturers; independent off-price price retailer);
retailers owned and run by entrepreneurs or by Costco, Sam’s
divisions of larger retail corporations; and Club (warehouse
warehouse (or wholesale) clubs selling a limited clubs)
selection of goods at deep discounts to consumers
who pay membership fees.
BUSI 2208 Dr. Irene Lu
 Major Types of Retail Organizations
Type Description Examples
Corporate Two or more outlets that are commonly Hudson’s Bay (department
Chain owned and controlled. Corporate chains stores), Giant Tiger
appear in all types of retailing but they (discount stores), Sobeys
are strongest in department stores, (grocery stores), Shoppers
discount stores, food stores, drugstores, Drug Mart (drugstores)
and restaurants.
Retailer Co- Group of independent retailers who Associated Grocers
operative jointly establish a central buying (groceries), Home
organization and conduct joint Hardware (hardware)
promotion efforts.
Franchise Contractual association between a McDonald’s, Subway,
Organization franchisor (a manufacturer, wholesaler, Pizza Hut, Jiffy Lube,
or service organization) and franchisees 7-Eleven
(independent businesspeople who buy
the right to own and operate one or
more units in the franchise system)..

BUSI 2208 Dr. Irene Lu

 Ten well Known Canadian Franchisers

5 BUSI 2208 Dr. Irene Lu

 Topic 2

Major retailer marketing decisions

BUSI 2208 Dr. Irene Lu

Retailer Marketing Strategies

BUSI 2208 Dr. Irene Lu

_retailing_ Mix

 Retail Pricing
 Store Location
 Central business district
 Regional shopping centers (up to about 150 stores
with anchor stores)
 Community shopping centers
 Retailing communication
–Image, atmosphere or ambience, layout, color,
lighting, music, etc.
 Merchandise
BUSI 2208 Dr. Irene Lu
 Topic 3

Major types of wholesalers and their

marketing decisions.

BUSI 2208 Dr. Irene Lu

Wholesaling

• Involves all the activities in selling goods and services

to those buying for resale or business use
– Wholesaler: A firm engaged primarily in
wholesaling activities

BUSI 2208 Dr. Irene Lu

Wholesaler Marketing Strategies

BUSI 2208 Dr. Irene Lu