PMM6

• • Retailing is the set of business activities that adds value to products and services sold to consumers for their personal or family use.
• • Retailers are a key component in a supply chain that links manufacturers to consumers.
• • A supply chain is a set of firms that make and deliver goods and services to consumer.
• The value-creating activities ARE PROVIDING ASSORTMENT, BREAKING BULK , HOLDING INVENTORY , PROVIDING SERVICES
• • Providing Assortment. Offering an assortment enables customer to choose from a wide selection of products, brands, sizes, and prices at one location.
• • Breaking Bulk. Retailers offer product in smaller quantities tailored to individual consumers’ and households’ consumption patterns.
• • Holding Inventory. A major value-providing activity performed by retailers is holding inventory so that products will be available when consumers want them.
• • Providing Services. Retailers provide services that make it easier for customers to buy and use products.
• • Vertical integration means that a firm performs more than one set of activities in the channel.
• • Backward integration arises when a retailer performs some wholesaling and manufacturing activities such as operating warehouses.
• • Forward integration occurs when a manufacturer undertakes retailing and wholesaling activities.
• • The competition between the same type of retailers is called intratype competition.
• • Scrambled merchandising is when retailers offer merchandise not typically associated with their

  type of store.
• • Intertype competition is a competition among retailers that sell similar merchandise using different types of retail outlets.
• • The retail mix is a set of decisions retailers make to satisfy customer needs and influence their purchase decisions.
• Retailer Characteristics

  ·      Type of Merchandise/Service

  ·      Variety and Assortment

  ·      Level of Customer Service

  ·      Price
• ·      Variety (also called breadth) is the number of

  merchandise categories a retailer offers.
• Assortment (also called depth) is the number of

  different items offered in a merchandise category.
• Each different item of merchandise is called a stock-

  keeping unit (SKU).
• Supermarkets

  A conventional supermarket is a retail food store offering groceries, meats, and produce, as well as some non-food items such as health and beauty aids
• 
  

  ·      Supercenters are large retail stores that combine a traditional grocery store with a department store, offering customers a one-stop shopping experience for a wide range of products
• 
  

  ·      Warehouse clubs are retail establishments that offer a membership-based model to customers, providing them access to a wide range of products at discounted prices. These clubs typically sell goods in large quantities, and customers can buy items in bulk.
• Convenience Stores

  ·      It focuses on providing a convenient and accessible shopping experience for consumers. These stores typically stock a limited selection of everyday items, emphasizing quick and easy access for customers. Convenience stores are known for their extended operating hours, with many open 24 hours a day.
• 
  

  ·      Online grocery retailers are businesses that allow customers to purchase groceries and other household items through the internet, with the orders delivered to their doorstep or made available for pickup.
• FOOD RETAILERS ARE SUPERMARKETS , SUPERCENTERS , WAREHOUSE CLUBS , CONVENIENCE STORES , ONLINE GROCERY RETAILERS
• GENERAL MERCHANDISE RETAILERS ARE DEPARTMENT STORES , FULL-LINE DISCOUNT STORES , CATEGORY SPECIALISTS , SPECIALTY STORES , DRUGSTORES , OFF-PRICE RETAILERS
• ·      Service retailers are firms that primarily sell services rather than merchandise.
• ·      Intangibility

  -Customers cannot see or touch them because they are performances or actions
• ·      Simultaneous Production And Consumption

  -Services are produced and consumed at the same time.
• ·      Perishability

  -Services cannot be saved, stored or resold.
• ·      Inconsistency

  -No two services will be identical.
• DIFFERENCE BETWEEN SERVICE AND MERCHANDISING RETAILERS ARE INTANGIBILITY , SIMULTANEOUS PRODUCTION AND CONSUMPTION , PERISHABILITY , INCONSISTENCY
• 3 TYPES OF OWNERSHIP ARE INDEPENDENT , SINGLE- STORE ESTABLISHMENT , CORPORATE RETAIL CHAINS , FRANCHISING
• ·      Independent, Single-Store Establishment

  Independent, small retailers are usually owned and managed by a single founder.
• ·      Corporate Retail Chains

  A retail chain is a company that operates multiple retail units under common ownership and usually has centralized decision-making for defining and implementing its strategy.
• Franchising is a contractual agreement in which the franchisor sells the rights to use its business trademark, service mark, or trade name, or another commercial symbol of the company to the franchisee.

   
• 4 RETAIL CHANNELS ARE SINGLE-CHANNEL RETAILING , MULTICHANNEL RETAILING , CROSS-CHANNEL RETAILING, OMNICHANNEL RETAILING
• Retail Channel

  ·      It is the way a retailer sells and delivers merchandise and services to its customers.
• Single-channel Retailing

  ·      Retailers sell and deliver merchandise and services to their customer through only one channel.
• Multichannel Retailing

  ·      Retailers offer more than one channel to sell and deliver merchandise and services to consumers. Channels operate without integrating operations between them.