2. PPT 1-1 5 th Edition

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

4. PPT 1-3 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. What is Retailing?

5. PPT 1-4 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

6. PPT 1-5 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

7. PPT 1-6 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 How Retailers Add Value Doll is developed at manufacturer The value of the product and service increases as the retailer performs functions.

8. PPT 1-7 Manufacturer’s Perspective The Four P’s of Marketing Distribution Retailers are part of the distribution channel Retailers are part of the distribution channel Product Price Promotion

9. PPT 1-8 Distribution Channel

10. PPT 1-9 Accounting Finance MIS Operations Marketing Human Resources Retailers are a Business Like Manufacturers

11. PPT 1-10 Decision Variables for Retailers Customer Service Store Design and Display Merchandise Assortment Communication Mix LocationPricing Retail Strategy

12. PPT 1-11 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

13. PPT 1-12 Retailing is Big Part of Economy Services (50%) Government (15%) Manufacturing (18%) Retail (17%)

14. PPT 1-13 Projected Job Gains (2000 – 2010)

15. PPT 1-14 Nature of Retail Industry is Changing Mom and Pop Store To Today’s Retailer

16. PPT 1-15 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

17. PPT 1-16 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

18. PPT 1-17 Retail Environment Differs Across the Globe USJapan Concentration High Medium Store Size Big Small Role of Low High Wholesaling Efficiency High Low

19. PPT 1-18 Retail Management Decision Process

20. PPT 1-19 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 (?)

21. PPT 1-20 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

22. PPT 1-21 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

23. PPT 1-22 Hot Topic’s Retail Mix Retail Strategy Customer ServiceLocation Merchandise Assortment Pricing Communication Mix Store Design And Display

24. PPT 1-23 Hot Topic’s Retail Mix Enclosed malls Customer Service Merchandise Assortment Pricing Communication Mix Store Display And Design Location Strategy

25. PPT 1-24 Hot Topic’s Retail Mix Location Pricing Communication Mix Store Design and Display Customer Service Many Different Hot Band T-shirts and Accessories Assortment Strategy

26. PPT 1-25 Hot Topic’s Retail Mix Location Communication Mix Store Design and Display Customer Service Merchandise Assortment Modest with Sales Pricing Strategy

27. PPT 1-26 Hot Topic’s Retail Mix Communication Mix TV and Magazine Ads Store Design And Display Customer Service Location Merchandise Assortment Pricing

28. PPT 1-27 Hot Topic’s Retail Mix Store Design and Display Heavy Metal, Gothic Look Customer Service Location Merchandise Assortments Pricing Communication Mix

29. PPT 1-28 Hot Topic’s Retail Mix Customer Service Modest Location Merchandise Assortment Pricing Communication Mix Store Design and Display

30. PPT 1-29 Macy’s Retail Mix Retail Strategy Customer Service Location Merchandise Assortment Pricing Communication Mix Store Design And Display

31. PPT 1-30 Macy’s Retail Mix Enclosed Malls Customer Service Merchandise Assortment Pricing Communication Mix Store Display And Design Location Strategy

32. PPT 1-31 Macy’s Retail Mix Location Pricing Communication Mix Store Design and Display Customer Service Many Items in Apparel and Soft Home Assortment Strategy

33. PPT 1-32 Macy’s Retail Mix Location Communication Mix Store Design and Display Customer Service Merchandise Assortment Moderate with Frequent Sales Pricing Strategy

34. PPT 1-33 Macy’s Retail Mix Communication Mix TV, Newspaper Ads and Special Events Store Design And Display Merchandise Assortment Pricing Customer Service Location

35. PPT 1-34 Macy’s Retail Mix Store Design and Display Ring with Displays Customer Service Location Merchandise Assortments Pricing Communication Mix

36. PPT 1-35 Macy’s Retail Mix Customer Service Modest Location Merchandise Assortment Pricing Communication Mix Store Design and Display

37. PPT 1-36 Wal-Mart’s Retail Mix Retail Strategy Customer Service Location Merchandise Assortment Pricing Communication Mix Store Design And Display

38. PPT 1-37 Wal-Mart’s Retail Mix Free-standing Stores Customer Service Merchandise Assortment Pricing Communication Mix Store Display And Design Location Strategy

39. PPT 1-38 Wal-Mart’s Retail Mix Location Pricing Communication Mix Store Design and Display Customer Service Large Number of Categories Few Items in Each Category Assortment Strategy

40. PPT 1-39 Wal-Mart’s Retail Mix Location Communication Mix Store Design and Display Customer Service Merchandise Assortment Low, EDLP Pricing Strategy

41. PPT 1-40 Wal-Mart’s Retail Mix Communication Mix TV and Newspaper Insert Ads Location Pricing Store Design and Display Customer Service Merchandise Assortment

42. PPT 1-41 Wal-Mart’s Retail Mix Store Design and Display Basic, Special Displays for Products Customer Service Location Merchandise Assortments Pricing Communication Mix

43. PPT 1-42 Wal-Mart’s Retail Mix Customer Service Limited Location Merchandise Assortment Pricing Communication Mix Store Design and Display

44. PPT 1-43 Career Opportunities in Retailing Start Your Own Business 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) List of Retail Entrepreneurs on Forbes 400 Richest Americans

45. PPT 1-44 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

46. PPT 1-45 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

47. PPT 1-46 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