CHAPTER 1

• Retailing


  Consist of the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer and to provide services to the consumer
• Bricks and Mortar Retailers


  Retailers that operate out of a physical and geographic based building or store
• E-Tailing


  Electronic retailing, the sale of goods and services through the Internet
• M-Tailing


  Wherein the power of the mobile phone technology is harnessed in retailing
• Price Competition


  Competitive pricing is the process of selecting strategic price points to best take advantage of a product or service-based market relative to competition
• Same-Store Sales


  Compares an individual store's sales to its sales for the same month in the previous year
• Store Size


  The amount of selling space will be one of the most important factors in selecting a location
• Scrambled Merchandising


  Exists when a retailer handles many different and unrelated items
• NAICS Codes


  The U.S Bureau of the Census classifies all retailers using three-digit North American Industry Classification System (NAICS) codes
• Number of Outlets


  The number of outlets each firm operates
• Gross-margin percentage


  A measure of profitability derived by dividing gross margin by net sales
• Gross margin


  The difference between net sales and cost of goods sold
• Operating expense


  Expenses that a retailer incurs in running the business other than the cost of the merchandise
• Inventory turnover


  The number of times per year, on average, that a retailer sells its inventory
• High-performance retailers


  Retailers that produce financial results substantially superior to the industry average
• Size


  May be classified by sales volume and number of employees
• Store management


  The retailing career path that involves responsibility for selecting, training, and evaluating personnel, as well as in-store promotions, displays, customer service, building maintenance, and security
• Buying


  The retailing career path whereby one uses quantitative tools to develop appropriate buying plans for the store's merchandise
• Salary

  Entry-level retail managers or buyers who do exceptionally well can double or triple incomes in three to five years. Retail entrepreneurs can build high levels of economic wealth
• Career Progression


  A person capable of handling increasing amounts of responsibility can move up quickly
• Geographic Mobility


  In order to progress rapidly, a person must often be willing and able to make several moves, even if the changes may not be attractive in terms of an individual's lifestyle
• Societal Perspective


  Professional merchants are considered respected and desirable members of their community, state, and nation. Leading retail executives are well-rounded individuals with a high social consciousness. Retailers serve society not only outside their retailing career but also within it as well
• Analytical Method

  The analytical retail manager is a finder and investigator of facts. These facts are summarized and synthesized so a manager can make decisions systematically
• Creative Method


  The creative retail manager is an idea person. This retail manager tends to be a conceptualizer and has a very imaginative and fertile mind capable of creating a highly successful retail chain
• Two-Pronged Approach


  The synthesis of creativity and analysis is necessary in all fields of retailing. To decide who or what to duplicate requires not only creativity but also an analysis of the strategies that retailers are pursuing
• Environmental 


  to anticipate and adapt continuously to external forces in the environment.
• Profit is all retail decisions will have an effect on the firm’s financial performance.
• Same-Store Sales

  Compares an individual store’s sales to its sales for the same month in the previous year
• Decision Making 


  to focus on the need to collect and analyze data for making intelligent retail decisions.
• Profit

  all retail decisions will have an effect on the firm’s financial performance.
• Management Planning

  adapt systematically to a changing environment. A retailer who wants to have the competitive edge must plan today for the future
• Enthusiasm

  Retailers must have a strong feeling of warmth for their jobs, otherwise they will convey the wrong image to their customers and department associates.
• Perseverance

  Retailers may become frustrated due to the many things they can’t control.
• Stress Tolerance

  Retailing is a fast-paced and demanding career in an ever-changing environment.
• Risk Taking

  Retail managers should be willing to take calculated risks based on thorough analysis and sound judgement; they should also be willing to accept responsibility for the results.
• Organization

  The ability to establish priorities and plans and follow through to achieve great results
• Leadership

  The ability to inspire the team members to trust and respect ability to delegate, guide, and persuade the team.
• Initiative

  Retail managers are doers. They must have the ability to originate action rather than wait to be told what to do. Manager must monitor the numbers of business (sales volumes, profits, inventory, levels, etc.) and seize opportunities for action
• Flexibility

  The ability to adjust to the ever-changing needs of the situation.
• Decisiveness

  The ability to make rapid decisions and to render judgment, take action, and commit oneself to a course of action until completion.