Put the following words in order: consumer, retailer, manufacturer, wholesaler

manufacturer→ wholesaler →reatailer → consumer What do they represent? The p_od_ct’s d_ _ _ _ib_t_on cha_ _el

DISTRIBUTION CHANNEL Producer Wholesaler/distributor Retailer Consumer How do you shop for X? Why? Agent Own sales force Online(Internet) or telephone or mail order sales

Retail and wholesale trade

Services provided by wholesaler A - For the producersB - For the retailers 1__ Advising them on current market trends 2__ Offering choice of products from many producers 3__ Finishing goods by grading, packing and branding 4__ Reducing transport costs 5__ Making mass production possible by ordering in large quantities → reducing production costs 6__ Supplying small quantities to suit their needs

Services provided by wholesaler A - For the producersB - For the retailers 1_A_ Advising them on current market trends 2_B_ Offering choice of products from many producers 3_A_ Finishing goods by grading, packing and branding 4_A_ Reducing transport costs 5_A_ Making mass production possible by ordering in large quantities → reducing production costs 6_B_ Supplying small quantities to suit their needs

Services provided by wholesaler For the producer: –Reducing transport costs –Advising producer on current market trends –Finishing goods by grading, packing and branding –Making mass production possible by ordering in large quantities → reducing production costs For the retailer: –Offering choice of products from many producers –Supplying small quantities to suit retailers’ needs wholesaler

SUPPLY THE RIGHT WORD: _______________ is the business of selling large quantities of goods at low prices to other businesses, rather than to the general public. WHOLESALING

DISTRIBUTION CHANNEL Producer Wholesaler/distributor Retailer Consumer Agent Own sales force Online(Internet) or telephone or mail order sales

Retailing FINISH THE LINE… The 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 users, usually in.. a shop.

Retailing STORM CLOUDS OVER THE MALL As consumer spending slows, rival strategies are being put to the test (RB, p 39) I Look at the title and subtitle – can you guess what the article is about – ANTICIPATING II Read topic sentences to inform your expectations – PREDICTING III Read paragraph by paragraph and underline words and expressions you find interesting After reading each paragraph correct the matching sentence in Task III (p 40 ) –Eg. Pg 1 – Task III, sentence 1

STORM CLOUDS OVER THE MALL (RB, p 39) Pg 1 high street the generic name (and frequently the official name) of the main street of a town where many shops and businesses are. Name the high street in Zagreb? How is business there?... his British retailing institution... is? Boots brace for an awful Xmas get ready for the pressure of Xmas What do you think Zagreb shopkeepers are bracing for? Correct the mistake in paragraph summary (Task III, 1): Consumer spending rises in Europe, competition is intense and some retail chains decide to merge with rival chains.

STORM CLOUDS OVER THE MALL (RB, p 39) Pg 1 high street the generic name (and frequently the official name) of the main street of a town where many shops and businesses are. Name the high street in Zagreb? How is business there?... his British retailing institution... is? Boots brace for an awful Xmas get ready for the pressure of Xmas What do you think Zagreb shopkeepers are bracing for? Correct the mistake in paragraph summary: Consumer spending declines in Europe, competition is intense and some retail chains decide to merge with rival chains.

Pg 2 Shopkeepers are notorious Eeyores – known for being pessimistic (Winnie the Pooh’s donkey friend) mire = swamp, bog What is Germany’s economy like? Mired? sinking, declining gas guzzling guzzle – drink to excess, greedily QUESTION: Can you say beer guzzling? Correct the mistake in paragraph summary: While Britain’s and Germany’s GDP is falling, consumer confidence is on the rise around the world.

Pg 2 Shopkeepers are notorious Eeyores – known for being pessimistic (Winnie the Pooh’s donkey friend) mire = swamp, bog What is Germany’s economy like? Mired? sinking, declining gas guzzling guzzle – drink to excess, greedily QUESTION: Can you say beer guzzling? Correct the mistake in paragraph summary: While Britain’s and Germany’s GDP is falling, consumer confidence is on the rise around the world. declining

Pg 3 fuel bills are cutting into customers’ spending? Correct the SUMMARY: Rising fuel costs and household debt affect customers’ spending which in turn has a positive effect on the sales of weaker retail players. Pg 4 Correct the SUMMARY: British supermarket chains expand into more product areas, and this affects negatively high-street chains and department stores. Pg 5 An upmarket version of WalMart Which is it? appealing or catering to high-income consumers; of high qualityTarget Correct the SUMMARY: Retailers’ survival strategy relies primarily on meeting a wide array of customers' needs.

Pg 3 fuel bills are cutting into customers’ spending? SUMMARY: Rising fuel costs and household debt affect customers’ spending which in turn has a negative effect on the sales of weaker retail players. Pg 4 SUMMARY: Giant supermarket chains expand into more product areas, and this affects negatively high-street chains and department stores. Pg 5 An upmarket version of WalMart Which is it? appealing or catering to high-income consumers; of high qualityTarget SUMMARY: Retailers’ survival strategy relies primarily on meeting customers' needs, and specialisation (niche market).

Pg 6 retailers can stumble in new markets to proceed unsteadily, encounter difficulties Throw in the towel (boxing?) admit/concede defeat, give up Swap stores for hypermarkets exchange Correct the SUMMARY: Secondly, retailers should keep a foothold in as many regions as possible to reach economies of scale. Pg 7 Have no global clout - advantage, influence have no significant global influence Correct the SUMMARY: Many retail chains have global clout.

Pg 6 retailers can stumble in new markets to proceed unsteadily, encounter difficulties Throw in the towel (boxing?) admit/concede defeat, give up Swap stores for hypermarkets exchange SUMMARY: Secondly, retailers should only expand to regions where they are strong. Pg 7 Have no global clout - advantage, influence have no significant global influence SUMMARY: Only a few retail chains have global clout.

Pg 8 Give a retailer the benefit of the doubt adopt a favourable opinion even when evidence is uncertain To source products globally to obtain, to find a supplier SUMMARY: Thirdly, retailers need to win consumer confidence through pricing, the biggest supermarkets own factories where they manufacture own-branded products cheaply. Pg 9 Replenish stocks Remember: Time is not replenishable... To supply what is lacking SUMMARY: Fourthly, some wholesalers introduce changes in the supply chain.

Pg 8 Give a retailer the benefit of the doubt adopt a favourable opinion even when evidence is uncertain To source products globally to obtain, to find a supplier SUMMARY: Thirdly, retailers need to win consumer confidence through pricing or service. Many retailers source high-quality products globally and brand them as their own. Pg 9 Replenish stocks Remember: Time is not replenishable... To supply what is lacking SUMMARY: Fourthly, some retailers introduce changes in the supply chain.

Pg 10 Correct the SUMMARY: Consumer spending declines because of the use of the Internet. Pg 11 A website can drive in-store sales stimulate the sales in brick & mortar stores Beef up a website strengthen, reinforce Correct the SUMMARY: Sales in virtual stores (c_ _ _ k -and-mortar stores) work against brick-and-mortar sales.

Pg 10 SUMMARY: Consumer spending grows because of the use of the Internet. Pg 11 A website can drive in-store sales stimulate the sales in brick & mortar stores Beef up a website strengthen, reinforce SUMMARY: Sales in virtual stores (click-and-mortar stores) complement/add to brick-and-mortar sales.

HW: RB, pp IV Survival advice to retailers. Review the list and get ready to present, comment... Which is the most important / future oriented do you think? What are some of the advantages of online shopping over buying in bricks-and-mortar shops?

E-commerce, RB: pp II Having read Storm clouds over the mall (2005), do you think that by 2012 major retailers made strong efforts to participate in e-commerce? III Find the following retailers in the text and explain why they are mentioned. HW: a)Read the text carefully and do exercises on p 44 b)Submit task VI

in excess Mistified?

London Calling