1. LESSON 1.1 RETAIL BUSINESSES
Describe the methods used to categorize retail businesses
Explain the retail life cycle

2. Benefits of Retail Stores include:
Retail is the sale of goods or services directly to the final customer.
Benefits of Retail Stores include:
1. Individuals able to purchase items they cannot make or generate
2. Manufacturers of products are able to earn a profit
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3. Retail Establishments
Department store
Provides a variety of general merchandise in a single convenient location
Discount merchandiser
Displays and sells a variety of products at lower prices than other retailers
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4. Retail Establishments
Specialty store
Specializes in a specific type of merchandise
Warehouse club/superstore
Self-service retailer sells national brands at a low price
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5. Retail Establishments
Wholesale club
Self service retailer offers nationally advertised brand-name goods at wholesale prices
Membership is usually required
Factory outlet
Display and sell products they receive from other retails or manufacturers
Catalog
Customers place orders by mail, telephone or internet site
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6. 4 Methods of Categorizing Retailers
NAICS categories
North American Industry Classification System
Every establishment that contributes to the US economy has an NAICS 6 digit code
All retail establishment codes start with 44 or 45
Establishments
A retail business can be categorized by the number of establishments the business operates
A retail store with more than eleven establishments is known as a chain store
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7. 4 Methods of Categorizing Retailers
3. Location
Malls, freestanding buildings, Internet
4. Size
Stores can be categorized according to size (# of employees and sales volumes)
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8. Retail Life Cycle Innovation Development Maturity Decline Innovation
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9. The Retail Life Cycle Innovation
Anything that is new or unique, making it different from other retail stores
Must have more than a good idea
Many businesses fail during this phase
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10. The Retail Life Cycle Development
Sales and profits increase at a dramatic rate
Business becomes more complicated
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11. The Retail Life Cycle Maturity
As the business matures sales and customers begin to decline
Competition begins to affect store
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12. The Retail Life Cycle Decline
Store will eventually lose customers and no longer earn a profit.
It becomes time to close the business
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