Types of Retailers Aim: How are stores classified by prices and product lines? Do Now: List the different classifications of retailers. Where do you shop most?

Discount Store a retailer that competes on the basis of low prices, high turnover, an high volume. Example: Marshall’s Located in heavily traveled areas Offer minimal service and strive for high volume to make good profit Fashion followers rather than leaders

Wholesale Warehouse Clubs Specializes in bulk sales of a limited selection of merchandise Usually charge an annual membership fee to customers

Full-line Discount Stores- offers very limited service and a broader assortment of well-known, national goods

Hyper Markets- started in Europe (200,000-300,000 square feet) Mass merchandising- moderate to low price on large quantities of merchandise and lower service to stimulate high turnover of products Ex. Walmart Hyper Markets- started in Europe (200,000-300,000 square feet) Target time-stressed consumers who want to do all their shopping in one place Super Centers- half the size of a hyper center. Combines groceries and general merchandise goods with a wide range of services

Specialty Discount Stores a retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume and high turnover AKA Category Killers

Off-Price Discounters- sell brand name or designer merchandise at lower than normal prices Sell 25% or more below dept. store prices b/c goods are purchased well below-wholesale prices and charge less than retail prices

Retailers’ Marketing Decisions Target market Product assortment Service/store atmosphere Price Communication Location

Retail Positioning Map Broad Narrow Breadth of product line Bloomingdale’s Wal-Mart Tiffany Sunglass Hut Value added Low High