1. Retail Institutions
by Store-Based
Strategy Mix
Chapter 5

2. Discuss Retail Strategy Evolution
Objectives
Describe
Wheel of Retailing
Scrambled Merchandising
Retail Life Cycle
Discuss Retail Strategy Evolution
Examine Store-Based Retail Strategies
Food-Oriented
General Merchandise

3. Strategy Mix
Location
Operating Procedures
Goods/Services Offered
Pricing Tactics
Atmospherics
Customer Services
Promotional Methods

4. Establishing Destination Retailer Status
Be Price-Oriented and Cost-Efficient
Be Upscale
Be Convenient
Offer Dominant Assortment
Offer Superior Customer Service
Be Innovative or Exclusive
Provide A Unique Way of Operating

5. Wheel of Retailing Medium Strategy Moderate Prices Improved Facilities
Broader Base of
Value- and Service-
Conscious Consumers
High-Ended Strategy
High Prices
Excellent Facilities
and Services
Upscale Customers
Low-End Strategy
Low Prices
Limited Facilities and Services
Price Sensitive Consumers

6. Retail Strategy Alternatives
Low-Ended Strategy
High-Ended Strategy
Low Rental location -- Side Street
High Rental Shopping Center or
Central Business District Location
No Services or Services Charged
at Additional Fee (or Services
May Be Limited to Credit and
Returns
Elaborate Services Available
Included in Price, Such As:
Credit Decorating
Delivery Gift Wrapping
Alterations Layaway
Spartan Fixtures and Displays
Elaborate Fixtures and Displays
Simple Retail Personnel Organization
Elaborate Retail Personnel
Organization
Price Emphasis in Promotion
No Price Emphasis in Promotion
Self-Service or High Sales per Store
Personnel Ratio
Product Demonstrations, Low Sales
Per Store Personnel Ratio
Crowded Store Interior
Spacious Store Interior
Most Merchandise Visible
Most Merchandise in Backroom

7. Merchandising Sandals Shoe Polish Original Merchandise Mix Slippers
Shoes

8. Scrambled Merchandising
Socks
Sandals
Shoe Polish
Belts
Scrambled
Merchandise
Mix
Handbags
Slippers
Shoes
Gloves

9. Retail Life Cycle
Maturity
Decline
Accelerated
Development
Innovation

10. Retail Life Cycle Number of Competitors Maturity Innovation Decline
Accelerated
Development
Very Few Moderate Many Direct Moderate Direct
Moderate Indirect Many Indirect
Very Few

11. Retail Life Cycle Growth/Profitability/Duration L Maturity Innovation
Decline
Accelerated
Development
Very Rapid Rapid Moderate to Slow Slow or Negative
Low to Moderate High Moderate Very Low
3-5 Years Years Indefinite Indefinite
Very Few

12. Retail Life Cycle Investment/Growth/Risk Decisions L Maturity
Innovation
Decline
Accelerated
Development
Investment Min Investment High Tightly Controlled Growth Marginal Capital
High Risk to Sustain in Untapped Markets Expenditures, &
Accepted Growth Only if Necessary
Very Few

13. Retail Life Cycle Central Management Concerns L Maturity Innovation
Decline
Accelerated
Development
Concept Refinement Establishing a Excess Capacity & Engaging in a
Through Adjustment Preemptive Overstoring; Prolonging Run-Out
& Experimenting Market Position Maturity & Revising the Strategy
Business Concept
Very Few

14. Retail Life Cycle Use of Management Control Techniques Maturity
Innovation
Decline
Accelerated
Development
Minimal Moderate Extensive Moderate
Very Few

15. Retail Life Cycle Most Successful Management Style Maturity Innovation
Decline
Accelerated
Development
Entrepreneurial Centralized Professional Caretaker
Very Few

16. Institution Evolution
Mergers
Diversification
Downsizing
Cost Containment
Value-Driven Retailing

17. Food-Oriented Retailers
Convenience Store
Conventional Supermarket
Food-Based Superstore
Combination Store
Supercenter
Hypermart
Box (Limited-Line) Store
Warehouse Store

18. Food-Oriented Retailers

19. General Merchandise Retailers
Specialty
Category Killer
Traditional Department Store
Full-Line Discount Store
Variety Store
Off-Price Chain
Factory Outlet
Membership Club
Flea Market

20. What You Should Know
How the Wheel of Retailing, Scrambled Merchandising, and Retail Life Cycle Help Explain Performance
The Evolution of Retail Strategy Mix
The Nature of Store-Based Retailers
Food-Oriented
General Merchandise

21. Questions?