1. 5th Edition

2. Introduction to the World of Retailing
Chapter 1
Introduction to the World of Retailing
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 5/e
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

3. 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.

4. 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

5. 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

6. 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

7. 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

8. Distribution Channel

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

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

11. Economic Significance of Retailing
Over $2.5 trillion in annual U.S. sales
-greater than medical care, housing, recreation combine
Employs 17% of population
-about the same as manufacturing and growing
Management training opportunities
Entrepreneurial opportunities

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

13. 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

14. Globalization of Retailing
Source Merchandise From Around the World
Wal-Mart Operates in U.S., China, Mexico, UK, Germany
Carrefour has Stores in 25 Countries

15. Retail Environment Differs Across the Globe
US Japan
Concentration High Medium
Store Size Big Small
Role of Low High
Wholesaling
Efficiency High Low

16. JC Penney’s Strategic Evolution
Main Street private label soft goods retailer
Changes in environment -- increased disposable income, growth of suburbs, interstate highway program
Emulate Sears in enclosed suburban malls
Focus on soft goods -- drop automotive, sporting goods, hardware
Develop catalog, develop electronic retailing
Future (?)

17. Sears’ Strategic Evolution
Large number of merchandise categories -- appliances, hardware, apparel
Malls evolved into places for buying soft goods, hard goods sold at category killers
The Softer Side of Sears
Refocused on value -- Testing carts in stores
Acquired Lands’ End
Reviewed training program for new managers

18. Whole Foods Implementation
Strategy - organic and natural foods supermarket chain Assortment beyond organic/natural foods
Private labels - Whole Food™, 360 Day Value™
Love, trust, and employee empowerment
Equality in compensation

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

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

21. 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

22. 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

23. 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

24. 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

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

26. Macy’s Retail Mix Retail Strategy Customer Service Location
Store Design And Display
Merchandise Assortment
Pricing
Communication Mix

27. Macy’s Retail Mix Location Strategy Enclosed Malls Customer Service
Merchandise Assortment
Pricing
Communication Mix
Store Display And Design

28. Many Items in Apparel and Soft Home
Macy’s Retail Mix
Assortment Strategy
Location
Pricing
Communication Mix
Store Design and Display
Customer Service
Many Items in Apparel and Soft Home

29. Moderate with Frequent Sales
Macy’s Retail Mix
Location
Communication Mix
Store Design and Display
Customer Service
Merchandise Assortment
Pricing Strategy
Moderate with Frequent Sales

30. TV, Newspaper Ads and Special Events
Macy’s Retail Mix
Store Design And Display
Merchandise Assortment
Pricing
Customer Service
Location
Communication Mix
TV, Newspaper Ads and Special Events

31. Merchandise Assortments
Macy’s Retail Mix
Store Design and Display
Customer Service
Location
Merchandise Assortments
Pricing
Communication Mix
Ring with Displays

32. Macy’s Retail Mix Customer Service Modest Location
Merchandise Assortment
Pricing
Communication Mix
Store Design and Display

33. Store Design And Display Merchandise Assortment
Wal-Mart’s Retail Mix
Customer Service
Location
Retail Strategy
Store Design And Display
Merchandise Assortment
Communication Mix
Pricing

34. Merchandise Assortment
Wal-Mart’s Retail Mix
Location Strategy
Free-standing Stores
Customer Service
Merchandise Assortment
Pricing
Communication Mix
Store Display And Design

35. Store Design and Display
Wal-Mart’s Retail Mix
Assortment Strategy
Customer Service
Location
Large Number of Categories
Few Items in Each Category
Store Design and Display
Communication Mix
Pricing

36. Store Design and Display
Wal-Mart’s Retail Mix
Location
Communication Mix
Store Design and Display
Customer Service
Merchandise Assortment
Pricing Strategy
Low, EDLP

37. TV and Newspaper Insert Ads
Wal-Mart’s Retail Mix
Location
Pricing
Store Design and Display
Customer Service
Merchandise Assortment
Communication Mix
TV and Newspaper Insert Ads

38. Basic, Special Displays for Products
Wal-Mart’s Retail Mix
Store Design and Display
Customer Service
Location
Merchandise Assortments
Pricing
Communication Mix
Basic, Special Displays for Products

39. Merchandise Assortment
Wal-Mart’s Retail Mix
Customer Service
Limited
Location
Merchandise Assortment
Pricing
Communication Mix
Store Design and Display

40. Career Opportunities in Retailing Start Your Own Business
List of Retail Entrepreneurs on Forbes 400 Richest Americans
Walton Family (Wal-Mart)
Fisher (The Gap)
Wexner (Limited)
Menard (Menard’s)
Marcus, Blank (The Home Depot)
Kellogg (Kohl’s)
Schulze (Best Buy)
Levine (Family Dollar)
Gold (99Cent Only)

41. 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

42. 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

43. 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

44. Centro de Comercio Detallsita
ADMINISTRACIÓN DE MERCANCÍAS / PRECIOS: Aprenderás el manejo de compras, resurtidos e inventarios que realizan las empresas de comercio al detalle. Analizarás la tecnología que está revolucionando el retail y estudiarás la administración y el establecimiento de precios, así como el desarrollo y presentación de líneas de producto, dando especial atención a las relaciones comprador-proveedor. 
INTERNSHIP I Y II: Aplicarás tus conocimientos dentro de una empresa detallista. en el verano trabajarás 7hrs. diarias por 5 semanas en una empresa de comercio al detalle, en donde conocerás las diferentes áreas de la empresa y tendrás la oportunidad de resolver algún problema o realizar un proyecto específico.  
ADMINISTRACIÓN DE LA TIENDA Y SERVICIO AL CLIENTE: Analizarás los procesos en el manejo y administración de una tienda. Aprenderás temas relacionados con sistemas de información, recursos humanos, imagen y diseño de la tienda (visual merchandising), servicio al cliente y CRM (Customer Relationship Management), entre otros.  
ESTRATEGIA DE COMERCIO DETALLISTA MULTICANAL: Conocerás las estrategias que siguen los principales detallistas y su implicación en las ventas. Comprenderás la metodología para la ubicación de puntos de venta. Aplicarás las estrategias de publicidad y promoción que se utilizan en el comercio detallista. Además, aprenderás la nueva tendencia en el retail de administración por categorías.