Retail Institutions by Store-Based Strategy Mix Chapter 5

Discuss Retail Strategy Evolution Objectives Describe Wheel of Retailing Scrambled Merchandising Retail Life Cycle Discuss Retail Strategy Evolution Examine Store-Based Retail Strategies Food-Oriented General Merchandise

Strategy Mix Location Operating Procedures Goods/Services Offered Pricing Tactics Atmospherics Customer Services Promotional Methods

Establishing Destination Retailer Status Be Price-Oriented and Cost-Efficient Be Upscale Be Convenient Offer Dominant Assortment Offer Superior Customer Service Be Innovative or Exclusive Provide A Unique Way of Operating

Wheel of Retailing Medium Strategy Moderate Prices Improved Facilities Broader Base of Value- and Service- Conscious Consumers High-Ended Strategy High Prices Excellent Facilities and Services Upscale Customers Low-End Strategy Low Prices Limited Facilities and Services Price Sensitive Consumers

Retail Strategy Alternatives Low-Ended Strategy High-Ended Strategy Low Rental location -- Side Street High Rental Shopping Center or Central Business District Location No Services or Services Charged at Additional Fee (or Services May Be Limited to Credit and Returns Elaborate Services Available Included in Price, Such As: Credit Decorating Delivery Gift Wrapping Alterations Layaway Spartan Fixtures and Displays Elaborate Fixtures and Displays Simple Retail Personnel Organization Elaborate Retail Personnel Organization Price Emphasis in Promotion No Price Emphasis in Promotion Self-Service or High Sales per Store Personnel Ratio Product Demonstrations, Low Sales Per Store Personnel Ratio Crowded Store Interior Spacious Store Interior Most Merchandise Visible Most Merchandise in Backroom

Merchandising Sandals Shoe Polish Original Merchandise Mix Slippers Shoes

Scrambled Merchandising Socks Sandals Shoe Polish Belts Scrambled Merchandise Mix Handbags Slippers Shoes Gloves

Retail Life Cycle Maturity Decline Accelerated Development Innovation

Retail Life Cycle Number of Competitors Maturity Innovation Decline Accelerated Development Very Few Moderate Many Direct Moderate Direct Moderate Indirect Many Indirect Very Few

Retail Life Cycle Growth/Profitability/Duration L Maturity Innovation Decline Accelerated Development Very Rapid Rapid Moderate to Slow Slow or Negative Low to Moderate High Moderate Very Low 3-5 Years 8 Years Indefinite Indefinite Very Few

Retail Life Cycle Investment/Growth/Risk Decisions L Maturity Innovation Decline Accelerated Development Investment Min Investment High Tightly Controlled Growth Marginal Capital High Risk to Sustain in Untapped Markets Expenditures, & Accepted Growth Only if Necessary Very Few

Retail Life Cycle Central Management Concerns L Maturity Innovation Decline Accelerated Development Concept Refinement Establishing a Excess Capacity & Engaging in a Through Adjustment Preemptive Overstoring; Prolonging Run-Out & Experimenting Market Position Maturity & Revising the Strategy Business Concept Very Few

Retail Life Cycle Use of Management Control Techniques Maturity Innovation Decline Accelerated Development Minimal Moderate Extensive Moderate Very Few

Retail Life Cycle Most Successful Management Style Maturity Innovation Decline Accelerated Development Entrepreneurial Centralized Professional Caretaker Very Few

Institution Evolution Mergers Diversification Downsizing Cost Containment Value-Driven Retailing

Food-Oriented Retailers Convenience Store Conventional Supermarket Food-Based Superstore Combination Store Supercenter Hypermart Box (Limited-Line) Store Warehouse Store

Food-Oriented Retailers

General Merchandise Retailers Specialty Category Killer Traditional Department Store Full-Line Discount Store Variety Store Off-Price Chain Factory Outlet Membership Club Flea Market

What You Should Know How the Wheel of Retailing, Scrambled Merchandising, and Retail Life Cycle Help Explain Performance The Evolution of Retail Strategy Mix The Nature of Store-Based Retailers Food-Oriented General Merchandise

Questions?