L2

• Retail Mix


  The most basic characteristic used to describe the different types of retailers
• Retail Mix

  • Type of Merchandise/and or service offered
  • Variety and Assortment
  • Level of customer service
  • Price of Merchandise
• Retail Merchandising


  The combination of strategies a business takes to encourage customers to purchase items in a retail store
• Variety


  The number of merchandise categories a retail offers
• Assortment


  The number of different items offered in a merchandise category
• Stock-Keeping Unit (SKU)


  Each different item of merchandise
• Services expected of all retailers

  • Displaying merchandise
  • Accepting credit cards
  • Being open at convenient hours
• Additional services some retailers charge for

  • Home delivery
  • Gift wrapping
• Conventional Supermarket

  • Large, self-service retail food store offering groceries, meat, and produce, as well as some non-food items such as healthy and beauty aids and general merchandise
  • Fresh Merchandise located in the areas around the outer walls, including dairy, bakery, meat and meal solutions
  • Offering more fair-trade, natural, organic, and locally sourced foods for health and environmentally conscious consumers
• Supercenter


  • Very large supermarkets that sell food and a wide range of other products usually at lower prices than other stores
  • Offers a full line of groceries, an optical department, a tire and oil-change department, a grill, portrait studio, hair salon, photo-processing lab, plus yogurt and cookie shops
  • Some customers find them inconvenient because it can take a long time to find the items they want
• Convenience Store


  • Provide a limited variety and assortment of merchandise at a convenient location in 3,000-5,000 square foot stores with speedy check out
  • Enable consumers to make purchases quickly
  • Generally charge higher prices than supermarkets for similar products like milk, eggs, and bread
• Department Store


  • Carry a broad variety and deep assortment, offer customer services, and organize their store into distinct departments for displaying merchandise
  • Offer both soft goods (non-durable or consumable goods) and hard goods (durable manufactured items)
• Specialty Store


  • Concentrate on limited number of complementary merchandise categories and provide high level of service
• Off-Price Retailers


  • Offer an inconsistent assortment of brand name merchandise at a significant discount off of the manufacturer's suggested retail price (MSRP)
  • Closeouts are end of season merchandise that will not be used in following seasons
  • Irregulars are merchandise with minor mistakes in construction
  • The off-price retail model relies on the purchase of over-produced, or excess, branded goods at a lower price, thus being able to sell to consumers at a discount
• Service Retailers


  • Retailers who deal with products that are categorized as services
  • May be involved in hotel industries, hospitals, restaurants, salons, and airlines, movie theaters, or colleges
  • Require the participants to offer quality services to keep and attract new customers
• Differences between Service and Merchandise Retailers

  • Intangibility
  • Perishability
  • Simultaneous production and consumption
  • Inconsistency of the offering to customers
• Types of Retail Ownership

  • Independent, single-store establishment
  • Corporate chains
  • Franchising