• Put the following words in order:

consumer, retailer, manufacturer, wholesaler

manufacturer→ wholesaler →reatailer → consumer

What do they represent?

The p_od_ct’s d_ _ _ _ib_t_on cha_ _el

DISTRIBUTION CHANNEL

Producer

Wholesaler/distributor

Retailer

ConsumerHow do you shop for X? Why?

AgentOwn sales force

Online(Internet)or telephone ormail order sales

Retail and wholesale trade

Services provided by wholesalerA - For the producers B - For the retailers

1__ Advising them on current market trends

2__ Offering choice of products from many producers

3__ Finishing goods by grading, packing and branding

4__ Reducing transport costs

5__ Making mass production possible by ordering in large quantities → reducing production costs

6__ Supplying small quantities to suit their needs

Services provided by wholesalerA - For the producers B - For the retailers

1_A_ Advising them on current market trends

2_B_ Offering choice of products from many producers

3_A_ Finishing goods by grading, packing and branding

4_A_ Reducing transport costs

5_A_ Making mass production possible by ordering in large quantities → reducing production costs

6_B_ Supplying small quantities to suit their needs

Services provided by wholesaler

• For the producer: – Reducing transport costs– Advising producer on current market trends– Finishing goods by grading, packing and branding– Making mass production possible by ordering in

large quantities → reducing production costs• For the retailer:

– Offering choice of products from many producers– Supplying small quantities to suit retailers’ needs

wholesaler

SUPPLY THE RIGHT WORD:• _______________ is the business of selling large

quantities of goods at low prices to other businesses, rather than to the general public.

WHOLESALING

DISTRIBUTION CHANNEL

Producer

Wholesaler/distributor

Retailer

Consumer

AgentOwn sales force

Online(Internet)or telephone ormail order sales

Retailing• FINISH THE LINE…

The retailer buys goods or products in large quantities from…

manufacturers or importers, either directly or through a …

wholesaler, and then sells individual items or small

quantities to …

the general public or end users, usually in..

a shop.

RetailingSTORM CLOUDS OVER THE MALL

As consumer spending slows, rival strategies are being put to the test

(RB, p 39)

• I Look at the title and subtitle – can you guess what the article is about – ANTICIPATING

• II Read topic sentences to inform your expectations – PREDICTING

• III Read paragraph by paragraph and underline words and expressions you find interestingAfter reading each paragraph correct the matching sentence in Task III (p 40 )– Eg. Pg 1 – Task III, sentence 1

STORM CLOUDS OVER THE MALL (RB, p 39)

Pg 1high streetthe generic name (and frequently the official name) of the main

street of a town where many shops and businesses are.Name the high street in Zagreb? How is business there?... his British retailing institution... is?Bootsbrace for an awful Xmasget ready for the pressure of XmasWhat do you think Zagreb shopkeepers are bracing for?

Correct the mistake in paragraph summary (Task III, 1):Consumer spending rises in Europe, competition is intense

and some retail chains decide to merge with rival chains.

STORM CLOUDS OVER THE MALL (RB, p 39)

Pg 1high streetthe generic name (and frequently the official name) of the main

street of a town where many shops and businesses are.Name the high street in Zagreb? How is business there?... his British retailing institution... is?Bootsbrace for an awful Xmasget ready for the pressure of XmasWhat do you think Zagreb shopkeepers are bracing for?

Correct the mistake in paragraph summary:Consumer spending declines in Europe, competition is intense

and some retail chains decide to merge with rival chains.

Pg 2

Shopkeepers are notorious Eeyores –

known for being pessimistic

(Winnie the Pooh’s donkey friend)

mire = swamp, bog

What is Germany’s economy like? Mired?

sinking, declining

gas guzzlingguzzle – drink to excess, greedilyQUESTION: Can you say beer guzzling?

Correct the mistake in paragraph summary:While Britain’s and Germany’s GDP is falling, consumer

confidence is on the rise around the world.

Pg 2Shopkeepers are notorious Eeyores – known for being pessimistic (Winnie the Pooh’s donkey friend)

mire = swamp, bogWhat is Germany’s economy like? Mired? sinking, declining

gas guzzling guzzle – drink to excess, greedilyQUESTION: Can you say beer guzzling?

Correct the mistake in paragraph summary:

While Britain’s and Germany’s GDP is falling, consumer confidence is on the rise around the world.

declining

• Pg 3 fuel bills are cutting into customers’ spending?Correct the SUMMARY:Rising fuel costs and household debt affect customers’

spending which in turn has a positive effect on the sales of weaker retail players.

• Pg 4Correct the SUMMARY:British supermarket chains expand into more product areas,

and this affects negatively high-street chains and department stores.

• Pg 5• An upmarket version of WalMart Which is it?appealing or catering to high-income consumers; of high

quality Target

Correct the SUMMARY:

Retailers’ survival strategy relies primarily on meeting a wide array of customers' needs.

• Pg 3 fuel bills are cutting into customers’ spending?SUMMARY:Rising fuel costs and household debt affect customers’

spending which in turn has a negative effect on the sales of weaker retail players.

• Pg 4SUMMARY:Giant supermarket chains expand into more product areas,

and this affects negatively high-street chains and department stores.

• Pg 5• An upmarket version of WalMart Which is it?appealing or catering to high-income consumers; of high

quality Target

SUMMARY:

Retailers’ survival strategy relies primarily on meeting customers' needs, and specialisation (niche market).

Pg 6retailers can stumble in new markets to proceed unsteadily, encounter difficultiesThrow in the towel (boxing?)admit/concede defeat, give upSwap stores for hypermarkets exchange

Correct the SUMMARY:

Secondly, retailers should keep a foothold inas many regions as possible to reach economies of scale.

Pg 7Have no global clout - advantage, influencehave no significant global influenceCorrect the SUMMARY:Many retail chains have global clout.

Pg 6retailers can stumble in new markets to proceed unsteadily, encounter difficultiesThrow in the towel (boxing?)admit/concede defeat, give upSwap stores for hypermarkets exchange

SUMMARY:

Secondly, retailers should only expand to regions where they are strong.

Pg 7Have no global clout - advantage, influencehave no significant global influenceSUMMARY:Only a few retail chains have global clout.

Pg 8Give a retailer the benefit of the doubt adopt a favourable opinion even when evidence is

uncertainTo source products globallyto obtain, to find a supplier SUMMARY:Thirdly, retailers need to win consumer confidence through

pricing, the biggest supermarkets own factories where they manufacture own-branded products cheaply.

Pg 9 Replenish stocks Remember: Time is not replenishable...To supply what is lackingSUMMARY:Fourthly, some wholesalers introduce changes in the

supply chain.

Pg 8Give a retailer the benefit of the doubt adopt a favourable opinion even when evidence is

uncertainTo source products globallyto obtain, to find a supplier SUMMARY:Thirdly, retailers need to win consumer confidence through

pricing or service. Many retailers source high-quality products globally and brand them as their own.

Pg 9 Replenish stocks Remember: Time is not replenishable...To supply what is lackingSUMMARY:Fourthly, some retailers introduce changes in the supply

chain.

Pg 10

Correct the SUMMARY:

Consumer spending declines because of the use of the Internet.

Pg 11

A website can drive in-store sales

stimulate the sales in brick & mortar stores

Beef up a website

strengthen, reinforce

Correct the SUMMARY:

Sales in virtual stores (c_ _ _ k -and-mortar stores) work against brick-and-mortar sales.

Pg 10

SUMMARY:

Consumer spending grows because of the use of the Internet.

Pg 11A website can drive in-store sales stimulate the sales in brick & mortar storesBeef up a website strengthen, reinforce

SUMMARY:

Sales in virtual stores (click-and-mortar stores) complement/add to brick-and-mortar sales.

HW: RB, pp 41-42IV Survival advice to retailers.Review the list and get ready to present, comment...

Which is the most important / future oriented do you think?

What are some of the advantages of online shopping over buying in bricks-and-mortar shops?

E-commerce, RB: pp 43-44

II Having read Storm clouds over the mall (2005), do you think that by 2012 major retailers made strong efforts to participate in e-commerce?

III Find the following retailers in the text and explain why they are mentioned.

HW: a) Read the text carefully and do exercises on p 44

b) Submit task VI

in excessMistified?

https://www.youtube.com/watch?v=26ELh7P2ZtA

London Calling• https://www.youtube.com/watch?v=EfK-WX2pa8c