Introduction to Retailing UNIT 1 Introduction to Retailing

What is Retailing? Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use. A retailer is a business that sells products and/or services to consumers for personal or family use.

Examples of Retailers Retailers: -Sears, Holiday Inn, McDonalds, Amazon.com, Jiffy Lube, AMC Theaters, American Eagle Outfitter, FAO Schwartz, Kroger Firms that are retailers and wholesalers that sell to other business as well as consumers: -Office Depot, The Home Depot, United Airlines, Bank of America, Sams Clubs

How Retailers Add Value Breaking Bulk -Buy it in quantities customers want Holding Inventory -Buy it at a convenient place when you want it Providing Assortment -Buy other products at the same time Offering Services -See it before you buy, get credit, layaway

How Retailers Add Value The value of the product and service increases as the retailer performs functions. Doll can be bought on credit or put on layaway Doll is featured on floor display Doll is offered in convenient locations in quantities of one Doll is developed in several styles Doll is developed at manufacturer

Manufacturer’s Perspective The Four P’s of Marketing Retailers are part of the distribution channel Retailers are part of the distribution channel Product Price Distribution Promotion

Distribution Channel

Retailers are a Business Like Manufacturers Finance Accounting Marketing Operations Human Resources MIS

Decision Variables for Retailers Customer Service Retail Strategy Store Design and Display Merchandise Assortment Pricing Location Communication Mix

Nature of Retail Industry is Changing To Today’s Retailer Mom and Pop Store

Retailing is a High Tech Industry - Selling Merchandise over the Internet - Using Internet to manage supply chains - Analyze POS data to tailor assortments to stores - Computer systems for merchandise planning

Hot Topic’s Retail Mix Location Strategy Enclosed malls Customer Service Merchandise Assortment Pricing Communication Mix Store Display And Design

Many Different Hot Band T-shirts and Accessories Hot Topic’s Retail Mix Assortment Strategy Location Pricing Communication Mix Store Design and Display Customer Service Many Different Hot Band T-shirts and Accessories

Store Design and Display Hot Topic’s Retail Mix Location Communication Mix Store Design and Display Customer Service Merchandise Assortment Pricing Strategy Modest with Sales

Hot Topic’s Retail Mix Communication Mix TV and Magazine Ads Store Design And Display Customer Service Location Merchandise Assortment Pricing Communication Mix TV and Magazine Ads

Heavy Metal, Gothic Look Hot Topic’s Retail Mix Store Design and Display Customer Service Location Merchandise Assortments Pricing Communication Mix Heavy Metal, Gothic Look

Hot Topic’s Retail Mix Customer Service Modest Location Merchandise Assortment Pricing Communication Mix Store Design and Display

Misconceptions About Careers in Retailing Don’t need college Low pay Long hours Boring Dead-end job No benefits Everyone is part-time Unstable environment

Why You Should Consider Retailing Entry level management positions -Department manager or assistant buyer/planner -Manage and have P&L responsibility on your first job Starting pay average with great benefits - Some retailers pay graduate school No two days are alike Buying for financially oriented people Management for people people

Types of Jobs in Retailing Most entry level jobs are in store management or buying, but… retailers also have staff specialists: --accounting and finance --real estate --human resource management --supply chain management --advertising --public affairs