4 - 1

RetailingRetailing

4 - 2

Retailing

Retailing includes

all the activities

involved in selling

products

or services

directly to final

consumers for

their personal,

non-business use.

Retailer

-Sales come primarily from retailing

4 - 3

Shopper marketing

• . using point-of-sale promotions and advertising to extend brand equity to “the last mile” and encourage favorable in-store purchase decisions.

4 - 4

What are the types of Retailers

Wal-mart

Tiffany

Sears

4 - 5

Convenience Stores

11 - 5

Sheetz positions itself as more than just a convenience store. Driven by its Total Customer Focus mission and the motto, “Feel the Love,” Sheetz aims to provide “convenience without compromise”

4 - 6

What are the types of Retailers

Wal-mart

Tiffany

Sears

Carry a narrow product line with a deep Carry a narrow product line with a deep assortment (single-line, limited line, or assortment (single-line, limited line, or superspecialty store); Category Killerssuperspecialty store); Category Killers

Carry several product lines, with each line Carry several product lines, with each line operated as a separate department managed operated as a separate department managed by specialist buyers or merchandisersby specialist buyers or merchandisers

A relatively large, low cost self-service A relatively large, low cost self-service operation; grocery and household products; operation; grocery and household products; highest frequency (Out-of home- cooking)highest frequency (Out-of home- cooking)

Small stores open 7 days long hours carryig Small stores open 7 days long hours carryig limited line of high-turnover convenience limited line of high-turnover convenience products at higher priceproducts at higher price

Very large stores for routinely purchased Very large stores for routinely purchased food and non-food itemsfood and non-food items

4 - 7

Types of Retailers (continued)

1. Independents off-price outlet (retail group or single shop)

2. Factory Outlet

3. Warehouse clubs

1.Corporate Chain

2.Contractual Associations

e.g. Franchise (40% US retail)

4 - 8

Discussion

• Why the number of departments stores is diminishing in Hong Kong?

4 - 9

Retail Marketing Decisions

4 - 10

Retail Targeting and Positioning

11 - 10

By positioning itself strongly away from Wal-Mart and other discounters, Whole Foods has made itself one of the nation’s fastest-growing and more profitable food retailers Whole Foods Market focuses on selling high-quality natural and organic foods

4 - 11

Why Successful? Differentiation

ProductProduct: Food,: Food,Price:Price: Low Low

-Global sourcing, Global sourcing, -small suppliers, small suppliers,

-no shelf-space rental fee,no shelf-space rental fee,-Promotion:Promotion: word-of-mouth word-of-mouth

-Distribution Distribution -(store atmosphere)(store atmosphere)

-Wet market, housing estate,Wet market, housing estate,-Bright and SimpleBright and Simple

ProductProduct: Food,: Food,Price:Price: Low Low

-Global sourcing, Global sourcing, -small suppliers, small suppliers,

-no shelf-space rental fee,no shelf-space rental fee,-Promotion:Promotion: word-of-mouth word-of-mouth

-Distribution Distribution -(store atmosphere)(store atmosphere)

-Wet market, housing estate,Wet market, housing estate,-Bright and SimpleBright and Simple

-ProductProduct: Food, : Food, grocery grocery

and life-style productsand life-style products-Price:Price: “Everyday low price” “Everyday low price”

-““High-low” pricing High-low” pricing -Promotion:Promotion: TV + ads TV + ads

-Distribution Distribution -(store atmosphere)(store atmosphere)

-Clean, well-organized, Clean, well-organized, -SpatialSpatial

-international, organicinternational, organic

-ProductProduct: Food, : Food, grocery grocery

and life-style productsand life-style products-Price:Price: “Everyday low price” “Everyday low price”

-““High-low” pricing High-low” pricing -Promotion:Promotion: TV + ads TV + ads

-Distribution Distribution -(store atmosphere)(store atmosphere)

-Clean, well-organized, Clean, well-organized, -SpatialSpatial

-international, organicinternational, organic

4 - 12

Shopping Centers Today

• Today’s shopping centers are more about creating places to be rather than just places to buy

11 - 12

4 - 13

Global Retailing Trends and Developments

Trend #1: New retail forms, shortening retail life cycles,

and retail convergence

(Department store 100 year to reach maturity; Warehouse

store 10 years)

- Wheel-of-retailing

many new types of retailing forms begin as low‑margin,

low‑price, low‑status operations, upgrade services, increase price,

become conventional retails, cycle begins.

4 - 14

Trend #2: Slow Economy

Trend #2: A slowed economy and tighter consumer spending

Postrecession Economy - “Pay-Less”; Target, McDonald

- Add Value

Home Depot: “You can do it. We can help.” “More saving. More doing.”

11 - 14

4 - 15

Trend #3: Green Retailing

11 - 15

Green: Stores, products, and consumer decisions

e.g. McDonald’s new eco-friendly restaurants are designed from the bottom up with a whole new eco-attitude

4 - 16

Trend #4

• Rise of megaretailers

11 - 16

4 - 17

Trend #5

• Growing importance of retail technologye.g. touch-screen kiosks, customer-loyalty cards,

electronic shelf labels and signs and self-scanning checkout systems.

• Global expansion of major retailers

11 - 17

4 - 18

Growth of Direct and Online Retailing

11 - 18

The Internet has spawned a whole new breed of shoppers – people who just can’t buy anything unless they first look it up online and get the lowdown

4 - 19

Trend #6

• Global expansion of major retailers

11 - 19