RETAIL TRADE

WHICH WORD IS MISSING?  the buying and selling of goods and services INTERNATIONAL ELECTRONIC ________________ INTERNET MOBILE

WHICH WORD IS MISSING?  the buying and selling of goods and services INTERNATIONAL ELECTRONIC COMMERCE INTERNET MOBILE

WHICH WORD IS MISSING?  the activity of buying, selling, or exchanging goods within a country or between countries  the value of country's exports and imports, especially when these are compared FREE INTERNATIONAL INVISIBLE VISIBLE __________________ OVERSEAS FAIR FOREIGN

WHICH WORD IS MISSING?  the activity of buying, selling, or exchanging goods within a country or between countries  the value of country's exports and imports, especially when these are compared FREE INTERNATIONAL INVISIBLE VISIBLE TRADE OVERSEAS FAIR FOREIGN

WHOLESALE AND RETAIL TRADE SECTORS The WHOLESALE TRADE sector comprises establishments engaged in wholesaling m___________. The wholesaling process is an intermediate step in the d ___________ of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) g ___________ for re-sale (i.e. goods sold to other wholesalers or retailers), (b) capital or non-consumer goods, and (c) raw m ___________ and supplies used in production. Wholesalers sell merchandise to other b___________ and normally operate from a warehouse or office.

WHOLESALE AND RETAIL TRADE SECTORS The WHOLESALE TRADE sector comprises establishments engaged in wholesaling merchandise. The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) goods for re-sale (i.e. goods sold to other wholesalers or retailers), (b) capital or non-consumer goods, and (c) raw materials and supplies used in production. Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office.

WHOLESALE AND RETAIL TRADE SECTORS The RETAIL TRADE sector comprises establishments engaged in r____________ merchandise. The retailing process is the final step in the distribution of merchandise; retailers are, therefore, organized to sell merchandise in s ____________ quantities to the general public. This sector comprises two main types of retailers: s____________ and non-store retailers.

WHOLESALE AND RETAIL TRADE SECTORS The RETAIL TRADE sector comprises establishments engaged in retailing merchandise. The retailing process is the final step in the distribution of merchandise; retailers are, therefore, organized to sell merchandise in small quantities to the general public. This sector comprises two main types of retailers: store and non- store retailers.

REMEMBER THE 4Ps?

HOW ABOUT PLACING? A Besides effective promotion and pricing, a product must be easily a ______________ to the consumer. Efficient business operation means getting the p ______________ to the right place at the right time. The p ______________ of a product is influenced by the distribution channel and the place of sale. For example, a low quality product sold in a small c ______________ shop is likely to be sold at a fairly low price. On the other hand, the price of a cup of coffee can range from €3 to €30 depending on where you have it.

HOW ABOUT PLACING? A Besides effective promotion and pricing, a product must be easily accessible to the consumer. Efficient business operation means getting the product to the right place at the right time. The price of a product is influenced by the distribution channel and the place of sale. For example, a low quality product sold in a small corner shop is likely to be sold at a fairly low price. On the other hand, the price of a cup of coffee can range from €3 to €30 depending on where you have it.

PLACING - LET’S RECAP... B The channel of d_____________ is the route a product passes from the producer to the consumer. Some of the most popular channels of distribution are: through a w _____________, through a retail o _____________, using an a _____________ or directly to the customer. In the case of small bakeries the bread, pizzas and cakes are baked and sold in the same place, while airline tickets are usually sold by agents, and cars can be p _____________ from retail outlets. The choice of distribution channel will have an effect on the price. Wholesalers, retailers and agents add their m___________- u___ to the manufacturer’s price. However, by selling directly you can cut the i____________’s mark-up.

PLACING - LET’S RECAP... B The channel of distribution is the route a product passes from the producer to the consumer. Some of the most popular channels of distribution are: through a wholesaler, through a retail outlet, using an agent or directly to the customer. In the case of small bakeries the bread, pizzas and cakes are baked and sold in the same place, while airline tickets are usually sold by agents, and cars can be purchased from retail outlets. The choice of distribution channel will have an effect on the price. Wholesalers, retailers and agents add their mark-up to the manufacturer’s price. However, by selling directly you can cut the intermediary’s mark-up.

PLACING – LET’S RECAP... C A retail outlet is the place where customers can purchase g ____________, for example: a corner shop, s ____________, s ____________ m__________, d ____________ s __________, h ____________, c ____________ s _________, etc. In addition to outlets, other methods of selling are d ____________ selling: m ____________ order, door-to-door s ____________, T___ sales, e-c____________ and c ____________ and c ____________.

PLACING – LET’S RECAP... C A retail outlet is the place where customers can purchase goods, for example: a corner shop, supermarket, shopping mall, department store, hypermarket, convenience store, etc. In addition to outlets, other methods of selling are direct selling: mail order, door-to-door salesperson, TV sales, e- commerce and cash and carry.

SERVICES PROVIDED BY THE WHOLESALER FOR THE PRODUCER:  reduces transport costs  advises producer of current market trends  finishes goods by grading, packing and branding  makes mass production possible by ordering in large quantities and therefore reducing production costs → ECONOMIES OF SCALE FOR THE RETAILER:  offers choice of products from many producers  supplies small quantities to suit retailers’ needs

WHOLESALE – THE BASICS WHAT IS WHOLESALE?  Wholesale is the resale of new and used goods in large quantities to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers. USES OF WHOLESALE:  I can get it for you wholesale.  sell bananas (by) wholesale

RETAIL – THE BASICS WHAT IS RETAIL?  the sale of goods to ultimate consumers, usually in small quantities HOW DOES IT WORK?  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 user customers, usually in a shop, also called a store. USES OF RETAIL:  the retail price  sell pencils in a retail quantity or at a retail price.  This shop retails books  It retails at 50 cents.

TYPES OF RETAIL OUTLETS  SUPERMARKET  HYPERMARKET  SHOPPING MALL  DISCOUNT STORE  DEPARTMENT STORE  CHAIN STORE  INDEPENDENT RETAILER  MOBILE SHOP  MARKET STALLS  VENDING MACHINE  CONVENIENCE STORE

MATCH THE DEFINITIONS WITH THE CORRESPONDING TYPES OF RETAIL OUTLETS.  one of a group of shops owned by the same company  a coin-operated machine supplying items like drinks, sandwiches and sweets, often found on railway stations and other public places  a collection of rented stalls selling a range of goods, often held outdoors in the centre of a town either daily or once a week  a large shop in the centre of town selling a wide variety of goods, with several floors and a large number of shop assistants in each section  a shop where you can buy food, magazines, etc., especially one that is open 24 hours every day

 a collection of shops under one roof, often outside towns, which has very large parking facilities and sells a wide range of goods  a large self-service shop selling food and drink and also household items  a covered area with shops, supermarkets and restaurants  a small shop, often a sole-owner business, such as a CORNER SHOP, general store or NEWSAGENTS  a vehicle that sells goods (such as fish, fruit and bread) in a variety of places, usually in rural areas where there is a lack of shops  located on the outskirts of towns in industrial areas, where customers select items, such as furniture, which are collected from a large store, and which has prices often lower than those in the town-centre shops

WHICH TYPES OF RETAIL OUTLETS ARE ILLUSTRATED BY THESE PICTURES?

WHAT’S THE CONNECTION BETWEEN THESE TWO PICTURES?

READING – STORM CLOUDS OVER THE MALL, RB, p. 39 & 40 I Anticipate some of the themes in the article from the following title: Retailing: Storm clouds over the mall: As consumer spending slows, rival strategies are being put to the test. II Read the opening sentence of each paragraph. Think of these sentences within the context of the predictions you have made.

READING – STORM CLOUDS OVER THE MALL, RB, p. 39 & 40 III PUT THE WORDS IN THESE QUESTIONS IN THE RIGHT ORDER, THEN READ THE ARTICLE AND GIVE ANSWERS: 1 - What undertake measures to increase the declining sales did the CEO of Boots? 2 - Which particular countries recorded alarming sales decline in? 3 - What for such slowdown were some the reasons of? 4 - What of the giant supermarket chains for the success some of the reasons were? 5, 6, 7, 8 - What are solutions proposed for competing the giants against? 9 - In what way do fight the competition some successful European retailers (Spain’s Inditex and Sweden’s Hennes & Mauritz)? 10, 11 - How important e-commerce is and what its effects are on retail trading?

READING – STORM CLOUDS OVER THE MALL, RB, p. 39 & 40 III READ THE ARTICLE AND GIVE ANSWERS TO THESE QUESTIONS: 1 - What measures did the CEO of Boots undertake to increase the declining sales? 2 - Which particular countries recorded alarming decline in sales? 3 - What were some of the reasons for such slowdown? 4 - What were some of the reasons for the success of the giant supermarket chains? 5, 6, 7, 8 - What solutions are proposed for competing against the giants? 9 - In what way do some successful European retailers (Spain’s Inditex and Sweden’s Hennes & Mauritz) fight the competition? 10, 11 - How important is e-commerce and what are its effects on retail trading?

READING AND VOCABULARY – STORM CLOUDS OVER THE MALL, RB, p. 40 & 41 IV Find and correct the mistake in each paragraph summary. V Do the VOCABULARY TASKS IV, V, VI & VII on pp. 39 – 42.

READING – E-COMMERCE – True or False?  Since the turn of the millenium most bricks-and-mortar stores have made radical changes to meet the demands and exploit the potential of e-commerce.  Online sales makes up about 50% of the total retail sales in the USA.  A certain type of consumers will never buy online.  Many respectable retailers still have insignificant online presence relative to their size.  To increase their sales figures, retailers have to differentiate their bricks-and-mortar stores from their online stores.  Consumers will always prefer to buy a certain type of products in physical stores rather than online.  Bricks-and-mortar stores are more attractive and entertaining than online stores.  Shopkeepers will have to invest fortunes to make their retail outlets more appealing and worth visiting for consumers.

READING – E-COMMERCE – RB, p. 43  Read the article Retailers and the internet clicks and bricks: Many retailers are being too slow in reinventing themselves for the age of online shopping and check your guesses about the T/F sentences.  Do the tasks on pp. 43 & 44.

READING – E -COMMERCE – RB p. 43 I What are some of the advantages of online shopping over buying in bricks-and-mortar shops? II According to the article Storm clouds over the mall, which was published in 2005, do you think that by 2012 major retailers had made strong efforts to participate in e-commerce? III Take a look at the list of large retailers mentioned in the text. Find them in the text and explain why they are mentioned. United Retail Group Walmart Target Amazon Apple Disney Macy's Borders