1. Chapter 2
Types of Retailers

2. Variety and Assortment
Variety is the number of merchandise categories a retailer offers. (“Breadth of merchandise”)
Assortment is the number of different items in a merchandise category (“Depth of Merchandise”)

3. SKU
Each different item of merchandise is called an SKU (stockkeeping unit)

4. Services Offered by Retailers
displaying merchandise
accepting credit cards
parking
convenient hours
home delivery
gift wrap
selection assistance
warranties

5. Food Retailers Conventional Supermarket Limited Assortment Supermarket
Supercenter
Warehouse Club
Convenience Store

6. Conventional Supermarket
a self-service food store offering groceries, meat and produce with limited sale of non-food items
about 30,000 SKUs

7. Limited-Assortment Supermarkets
Only about 1250 SKUs
Only 1-2 brands and sizes
40-60% lower prices

8. Supercenters a supermarket combined with a full-line discount store
100, ,000 SKUs

9. Warehouse Clubs
offer a limited and irregular assortment of food and general merchandise with little service at low prices

10. Convenience Stores
provide a limited variety and assortment of merchandise
SKUs

11. General Merchandise Retailers
Department Stores
Full-Line Discount Stores
Specialty Stores
Drugstores
Category Specialists (and Category Killers)
Extreme Value Retailers
Off-Price Retailers (Outlet Stores/Factory Outlets) El

12. Department Stores
Retailers that carry a broad variety and deep assortment
offer customer service
organize their stores into distinct departments

13. Full-Line Discount Stores
retailers that offer a broad variety of merchandise, limited service and low prices

14. Specialty Stores
concentrate on a limited number of complementary merchandise categories
provide a high level of service in relatively small stores
deep but narrow assortments and sales associate expertise

15. Drugstore
specialty stores that concentrate on health and personal grooming merchandise

16. Category Specialists
big box discount stores that offer a narrow but deep assortment of merchandise
can be ‘category killers’

17. Extreme Value retailers
small, full-line discount stores (Dollar Tree)

18. Off-Price Retailers
an inconsistent assortment of brand name merchandise at low prices
close outs/irregulars
outlets stores/factory outlets

19. Non-store Retailing Electronic Retailing Catalog Retailing
Direct mail Retailers
Direct Selling
Television Home Shopping
Vending Machine Retailing

20. Electronic Retailing
Electronic Retailing (online) is a retailing format in which the retailers communicate with customers and offer products and services for sale over the internet.

21. Catalogue Retailing
the retail offering is communicated to a customer through a catalogue

22. Direct-Mail Retailers
communicate to customers using letters and brochures

23. Direct selling
Independent salespeople contact customers directly in a convenient location, demonstrate merchandise benefits, take orders, deliver the merchandise or perform the service
Party-plan system - salespeople encourage customers to act as hosts and invite friends and coworkers
Multilevel network - people serve as master distributers, recruiting other people to become distributers of their network

24. Television Home Shopping
a retail format in which customers watch a television program that demonstrates merchandise and place orders - usually by telephone
3 Types - dedicated cable channels, infomercials and direct response advertising

25. Vending machine retailing
merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card

26. Service Retailers
Firms that primarily sell services rather than merchandise.
Services are generally intangible
Services have simultaneous production and consumption (service providers create and deliver the service as the consumer is using/consuming it)
Services are perishable or time-sensitive
Services can be inconsistent

27. Types of Ownership Independent, Single-Store Establishments
Corporate Retail Chains
Franchises