15. Retailing Strategy

15. Retailing Strategy

1. includes all act involved in selling, renting, and providing goods and services to ultimate consumers for personal, family or household use.

   • A. Form of Ownership
     • 1. Independent retailer is one of the most common forms of retail ownership
       • 2. Corporate chain involves multiple outlets under common ownership. Centralization of decision making and purchasing is common.
         • 3. Contractual System - Involve independently owned stores that band together to act like a choice
           • Franchising is when an individual or firm contracts with a parent company to set up a business or retail outlet
   • b. Level of Service
     • 1. Self-service
       • 2. Limited Service
         • 3. Full service outlets
           • Outlets provide a complete range of services to cater to the shopper.
         • Outlets provide some services such as credit, merchandise return, and telephone ordering. Ex Canadian Tire
       • Exists when the customer performs many functions, and little service is provided by the outlet - Costco.
   • C. Merchandise Line
     • Retail outlets are classified by the
       • Breadth of the product line
         • Categories
       • Depth of product line
         • Assortment
   • 1. Stores with large assortment (depth) are limited - line stores or single-line stores or specialty outlets
     • This includes most of the smaller mall stores
     • 2. Store with broadlines (good breadth, many categories) are often called general merchandise stores. Department Stores carry a wide range of products but not unusual sizes
       • a. Scrambled merchandising is when a store offers several unrelated product lines. This creates:
         • Intertype Competition
           • Competition between dissimilar type of retail outlets. Ex Costco
         • Intratype Competition
           • One company to another. Ex Groceries Vs Groceries
         • b. Hypermarkets are large stores (over 200,000 square feet) offering a mix of food products and general merchandise