BSAD 432 Introduction

Agenda Administrative Items Course details

http://moodle.stfx.ca Introduce some core retail concepts and trends using an

illustrative case. Discussion will incorporate:

Special Characteristics of Retailing The Retail Concept Total Retail Experience Retail Positioning Strategic Options in Economic Downturn

Administrative Items Last day to add/drop courses: Wednesday,

September 10, 2014. BSAD 471 – EMPIRE AGM, Thurs Sept 11

Count of students attending Responsibilities of students missing class

Retail Institutions Trip Planning October 23 – on campus presentation, 12:45 pm October 24 - trip

Current head count

Retail Institutions Trip On October 24, 2014 we will travel to Dartmouth Crossing

and Mic Mac Mall via bus to complete a Retail Institutions Assignment for BSAD 432.

You will complete an assignment in groups of 4-5 students worth 10% of your final course grade.

You are NOT expected to miss regularly scheduled classes to participate. If you have a scheduling conflict with this assignment, an alternate assignment will be made available.

For planning purposes, you must indicate your intention to participate in the group trip by signing the sheet being circulated now.

The 10 largest Canadian retailers according to “Global Powers of Retailing: Retail Beyond Begins 2014”

1. Couche Tard2. Loblaws3. Empire4. Metro5. Shoppers6. Canadian Tire7. Rona8. Hudson’s Bay Company9. Liquor Control Board of Ontario

The Q ratio (pG31-32)

•The ratio of a publicly traded company’s market capitalization to the value of its tangible assets.

•If the value is greater than 1, it means that the market believes part of the company’s value comes from its intangible assets.

•Look at some Q ratios

The Canadian Retail Landscape Major US Retailer Entry

Think about how Canadian retailers can compete in this changing environment. CBC Video Story Update

© 2006 Pearson Education Canada Inc.

1.7

Special Characteristics Affecting Retailers

Small Average

Sale

Impulse Purchases

Popularityof

Stores

Retailer Strategy

Figure 1.10 Applying the Retail Concept

Customer Orientation

Coordinated Effort

Value driven

Goal Orientation

RetailingConcept

RetailStrategy

Overall Strategy ComponentsThe Retailing Strategy Mix is a combination of: Product Price Location Communication Operations Management

Need to balance with uncontrollable environmental and marketplace factors

Controllable Factors

Figure 3.7 Selected Retail Positioning Strategies

The Positioning Approach of High-End Jewellery Stores

HandoutTake 10 minutes to read the case and discuss the questions with classmates.

Costco Tiffany

The Positioning Approach of High-End Jewellery Stores

1. Positioning Chart – Jewellers2. Blurred positioning?3. Pros and cons of Tiffany’s low price strategy4. How would you expect the total retail

experience to differ in Wal-Mart, department stores and high-end retailers?

Total Retail Experience The elements in a retail offering that

encourage or inhibit consumers during their contact with a retailer.

Includes both controllable and uncontrollable factors

Think again about the reasons you gave when choosing your favourite retailer last day…

“It is critical … for a retailer to choose his or her spots…to accept the notion that you can’t be everything to everyone.”

- Kevin Coupe, Morningnewsbeat.com

1.15

Strategic Options in Weak Economic Times p. 23-4

Rethink existing store formats (including pop-up shops)

Low inventory to reduce markdowns Begin holiday season earlier Shop now pay later

Discounts on credit card purchases Re-introduce layaway plans

Couponing?

Takeaways Retail strategy is influenced by the nature of retail’s

special characteristics Retail strategy should reflect the retail concept The retail strategy mix consists of product, price,

location, communication, and operations management factors

The combination of retail strategy mix creates a perception or ‘position’ of the retailer in consumers’ minds