1. Introduction to Retailing
UNIT 1
Introduction to
Retailing

2. 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.

3. 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

4. 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

5. 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

6. 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

7. Distribution Channel

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

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

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

11. 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

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

13. 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

14. 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

15. 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

16. 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

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

18. 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

19. 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

20. 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