Types of Store-Based Retailers Service Retailers 2

Chapter Objectives Identify the types of store-based retailers. Explain the importance of service retailers. Identify the types of service retailers. 3

Shopping for Retailers You can purchase the same product from several types of retail stores. Different kinds of store-based retailers serve particular customers’ needs and wants. 4

What Are Store-Based Retailers? Store-based retailers are the most prevalent form of retailing. store-based retailer a retailer that operates and conducts business from a fixed location 5

General-Merchandise Retailers A general-merchandise retailer sells merchandise as well as different kinds of services. general-merchandise retailer a retailer that sells a large variety of merchandise 6

General-Merchandise Retailers Shopping in a department store can be like shopping in a series of smaller specialty stores under one roof. They also offer a variety of customer services. department store a retailer that separates merchandise into different departments, or sections 7

General-Merchandise Retailers A branch store sells much the same merchandise as the main, or parent store, only on a smaller scale. Twig stores are smaller than branch stores and sell a limited line of merchandise. 8

General-Merchandise Retailers A junior department store specializes in just a few merchandise lines. Prices are higher than those of other retailers. junior department store a smaller version of a department store that does not carry as many merchandise lines 9

General-Merchandise Retailers Many shoppers prefer the smaller environment of a specialty store. specialty store a store that sells a limited type of merchandise A discount department store is not as concerned with the atmosphere of its shopping environment. discount department store a department store that sells merchandise at low prices 10

General-Merchandise Retailers Variety stores sell many different kinds of merchandise but do not generally offer customer services. variety store a small retail outlet that sells a variety of low-priced merchandise Off-price retailers sell merchandise at prices lower than those at department or specialty stores. off-price retailer a retailer that buys merchandise directly from the manufacturer and sells it at low prices 11

General-Merchandise Retailers Prices are lower at outlet stores, but you don’t always get the latest styles or the best selection. outlet store a manufacturer-owned store, also called a factory store, that sells overproduced or returned merchandise at low prices A warehouse club buys and sells in bulk and does not offer many customer services. warehouse club a large store that offers volume discount prices and minimal variety, presentation, and service 12

Food Retailers Food retailers are specialized retailers and are in a separate category because they are a large segment of the retail industry. food retailer a retailer that sells mostly food and related goods 13

Food Retailers A supermarket is the department store of food retailing. supermarket a self-service department store that sells mostly food and other retail merchandise A convenience store sells snack food items, staples such as bread, and household items. convenience store a small retail outlet that sells convenience foods as well as staples and household items at higher prices 14

Food Retailers Supercenters are housed in large buildings and stock many products. supercenter a combination of a large discount department store and a discount supermarket Warehouse clubs offer discount merchandise as well as food. Food is sold in larger quantities than at supermarkets. 15

How is an off-price store different from an outlet store? 1. Describe two ways in which a department store differs from a specialty store. How is an off-price store different from an outlet store? List the four types of food retailers discussed in this section. 2. Quick Check Answers A department store separates various merchandise lines into different departments; a specialty store sells a limited type of merchandise An off-price store buys merchandise directly from the manufacturer that has been returned from other retailers or includes end-of-season items. An outlet store is usually owned by the manufacturer of the merchandise; it usually sells merchandise that has been produced in too great a quantity or has not been purchased by or has been returned by other retailers. warehouse clubs, supercenters, convenience stores, and supermarkets 3. 16

Familiarity Breeds Success Some retail companies use the Web to do more than just send customers to their store locations. Sephora is a beauty-store chain that carries over 250 lines of products. Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com. Its Web site, Sephora.com, has the image and accessibility of the retail stores. Customers at Sephora.com can find the same products and personalized customer service that is found in the retail store. This familiarity puts customers at ease so they will shop online again. For more information on retailing, go to marketingseries.glencoe.com. 17

Service and Retailing A service retailer operates his or her core business from a fixed location just as merchandise retailers do. service retailer retailer that sells something that is intangible or does not last very long 18

Types of Service Retailers A bank is an example of a financial-services retailer. financial-services retailer a retailer that provides personal financial services Hotels, motels, inns, and campgrounds are examples of hospitality and lodging services. hospitality and lodging services retail services that provide you with a place to live in comfort for one or several days 19

Types of Service Retailers Household cleaning companies, carpenters, and automobile dealers are examples of maintenance and repair-service retailers. maintenance and repair-service retailer a retailer that provides services that require special training or equipment Physicians, barbers, and music teachers are examples of personal services. personal services services you use to enhance physical or emotional well-being 20

Types of Service Retailers Bowling alleys, amusement parks, and travel agencies are examples of companies in the recreation and tourism services industry. recreation and tourism services a category of the retailing industry that provides leisure activities 21

Types of Service Retailers Some rental services only rent one thing, such as cars. Others specialize in general rentals. rental services services that provide a way to use goods without having to purchase anything The area of restaurants and food services is diverse. Examples include fine dining, casual dining, and fast food. 22

Types of Service Retailers Security-services retailers protect your home, person, and property. Transportation-services retailers are in the business of moving people or products from one place to another. 23

Service Retailers ? ? ? ? ? ? ? ? ? Accounting Firm Financial-Services Retailer ? Hotel Hospitality and Lodging Services Retailer ? Lawn Care ? Maintenance and Repair-Services Retailer Hairstylist ? Personal-Services Retailer Movie Theater ? Recreation and Tourism-Services Retailer Video and DVD Rental Rental-Services Retailer ? Caterer ? Restaurants and Food-Services Retailer Burglar Alarms ? Security-Services Retailer Airlines Transportation-Services Retailer ? 24

Name the nine categories of service retailers. 1. Name the nine categories of service retailers. What are three types of restaurant and food-service retailers? How are service retailers like product retailers? 2. Quick Check Answers financial, hospitality and lodging, maintenance and repair, personal services, recreation and tourism, rental, restaurant and food services, security services, and transportation services. fine-dining restaurant, casual family restaurant, and fast-food restaurant They operate their core business from a fixed location and are always tweaking their offerings. 3. 25

Checking Concepts Define store-based retailers. 1. 2. General-merchandise retailers sell a large variety of merchandise 2. Answers may vary but should include four of the following: department store, junior department store, off-price retailer, outlet store, and warehouse or wholesale club. 3. Store-based retailers operate and conduct business from a fixed location. 1. 2. Describe what general-merchandise retailers sell. Checking Concepts Answers Store-based retailers operate and conduct business from a fixed location. General-merchandise retailers sell a large variety of merchandise. Answers may vary but should include four of the following: department store, junior department store, off-price retailer, outlet store, and warehouse or wholesale club. Name four examples of general-merchandise retailers. 3. continued 26

Checking Concepts Identify three maintenance and repair-services retailers. 4. Warehouse clubs offer volume discount retailing, less variety, and minimal presentation and service, inconsistent retail offerings, and may require a membership fee. Supercenters are a combination of a large discount department store and a supermarket. 5. Service retailers sell something that is intangible or does not last very long. 6. Answers for maintenance and repair-service retailers may include gardeners, landscapers, housecleaners, lawn-care companies, or automobile repair companies. 4. 5. Compare supercenters and warehouse clubs. Checking Concepts Answers Answers for maintenance and repair-service retailers may include gardeners, landscapers, housecleaners, lawn-care companies, or automobile repair companies. Warehouse clubs offer volume discount retailing, less variety, and minimal presentation and service, inconsistent retail offerings, and may require a membership fee. Supercenters are a combination of a large discount department store and a supermarket. Service retailers sell something that is intangible or does not last very long. Describe service retailers. 6. continued 27

Checking Concepts Critical Thinking Explain what the hospitality and lodging industry provides. 7. Food retailers are categorized separately because they are such a large segment of the retail industry. 8. The hospitality and lodging industry provides a place to live in comfort for one or several days. 7. Critical Thinking 8. Explain why food retailers are categorized separately. Checking Concepts Answers The hospitality and lodging industry provides a place to live in comfort for one or several days. Food retailers are categorized separately because they are such a large segment of the retail industry. 28

Customizable Slide 29

End of