chapter 13 retailers. fashion from concept to consumer, 8/e© 2005 pearson education, inc. gini...
TRANSCRIPT
Chapter 13
Retailers
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
The Retailing Picture
• Retailing is the link between manufacturer and consumer.• Enormous changes have recently occurred in retailing methods,
management and ownership.• Most top retail stores began in manufacturing and marketing
centers:– Paris– London– Tokyo– Rome– Milan– New York
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
The Retailing Picture
• Flagship stores remain in cities with branch stores added in suburbs, following the post war exodus to suburbia spurred by the development of highways.
• Malls, enclosed climate controlled establishments managed as a single property are dominate form.
• These shopping centers take many forms:– Regional centers and fashion specialty centers– Power, or value centers– Outlet centers– Recreational or theme centers– Life style centers, urban malls and transportation centers
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
The Retailing Picture
• During the last quarter of the 20th century, many retailers, pushed by competition, debt, inventory control and poor management, closed.
• In spite of this market contraction, the United States boasts 19 square feet of retail selling per person in the country now, compared to just 7 feet per person in 1970.
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
Retailing Strategies Today
• Today’s retailer responds to the increased competition and stagnant market by mirroring trends in consumer lifestyles.
• These strategies include:– Unique merchandise– Value directed retailing– Service oriented retailing– Entertainment– Global expansion
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
Store-Based Retailers
• Over the past hundred years a variety of retail operations have evolved, with distinction blurring between categories of merchants.
• Some of the most important categories are:– Specialty stores including:
• Single line• Single brand, or private label• Limited line• Multiple line
– Department stores
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
Store-Based Retailers
• Categories continued:– Mass merchants including:
• Discounters• Off price retailers• Outlet stores• Warehouse clubs
– Promotional stores– Consignment stores
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
Retail Organizations
• Retailing functions are generally divided into six areas of responsibility:– Merchandising
– Retail operations
– Marketing
– Finance
– Real estate or store planning
– Human resources
• Merchandising, operations, and marketing are responsible for driving sales.
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
Retail Organizations
• Small stores typically have one person, often the owner, handling many. responsibilities while large stores usually enjoy specialization of task.
• Lease departments handle areas where special sales training is necessary:– Furs– Shoes– Fine jewelry
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
Type of Ownership
• Three types of ownership exist:
– Sole proprietorships, where a single person owns the operation and is responsible for all decisions. They represent the vast majority of independent fashion stores.
– Partnerships, where two or more persons own the business. Most often each partner has a particular specialty, and as the store grows, tasks specialize.
– Corporations, where stockholders finance the corporation and elect a board of directors. The board selects chairmen and officers to run the company. These officers set policy and ensure proper execution of these strategies.
– Nearly all chains are corporations.
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
Nonstore Retail
• Originally developed for consumer convenience, it has evolved into many formats critical for success in today’s retail environment.
• Mail order catalogues offer merchandise for shopping at home.
• Production and distribution are critical since quick response to fashion trends is difficult.
Fashion From Concept to Consumer, 8/e © 2005 Pearson Education, Inc.Gini Frings Upper Saddle River, New Jersey 07458
Nonstore Retail
• E-commerce is basically catalog via the Internet with the additional bonus of quicker ordering and fulfillment and better viewing capacity.
• Television home shopping includes shopping networks and infomercials transmitted via the television.
• All of these effectively allow shoppers to remain at home and shop at their convenience.