EBS Chapter 2

Chapter 2The Retail Industry

EBS Chapter 2

WholesalersThe businesses that buy products in BULK (huge amounts) or in large quantities from manufacturers and producers and sell them in small quantities to retailers.

Retailer #1 Retailer #2 Retailer #3 Retailer #4

WHOLESALERS

Manufacturers Producers

Retailing methods (ways to sell

a product/ service)

Direct MailInternet

Retail StoreVending Machine

Telephone

TYPES of Retail Stores1. Specialty store2. Convenience store3. Department store4. Supermarket5. Hypermarket Can you give an

example for each of them at this point of time?

Can you give an example for each

of them at this point of time?

1. Specialty Store

• Cater to specific market• Distinct image• Offer wide selection of a specific range of

products• Offer personalised service• Offer expert product knowledge Examples: Esprit , Charles & Keith, Popular, Watsons, Zara, G2000 etc.

2. Convenience Store

• Sells limited variety of fast-moving basic food and non-food products

• Sell products that are usually inexpensive• Located in neighbourhood areas, along busy

roads or petrol stations• Usually open for long hours for seven days a

week

Examples: Cheers, 7- Eleven

3. Department Store• Provide a one-stop shopping experience

• Located in major shopping centres• Have more than one floor• Provide wide-range of customer services such as

delivery, alteration and gift wrapping• Provide special staff expertise in various product

departments Examples: Robinsons, John Little, TANGS, Metro, Takashimaya, Isetan.

4. Supermarket• Large stores that sell groceries, fresh produce,

dairy products and household items• Sell mainly food products• Offer competitive prices• Encourage self-service Examples:Cold Storage, NTUC Fairprice, Prime Supermarket, Shop N Save.

5. Hypermarket• Combination of supermarket, department store

and a specialty store• Have extremely large store areas• Use basic display racks• Offer competitive prices• Encourage self-service Examples: Giant, Carrefour

RECAP

• What are the 5 types of retail stores?• List down at least 2 examples for

each type of retail store.• State 2 characteristics for each type

of retail store.

The overall impression customers have of the store.

StoreLayout

PresentationOf merchandise

StoreDesign

Fixtures Lighting

Product Price

CustomerService

ProductSelection

STORE DESIGN• Refers to the appearance of the store• Includes both the exterior and

interior of a store.

Exterior Interior

Display window Ceiling

Store Signage Flooring

Entrance Walls

STORE LAYOUT (refer to page 30 of TB)

• Most common type: Grid Pattern Layout

• Why?1.Makes good use of space2.Easy for customer to walk about3.Encourages self-service4.Discourages shoplifting

WAYS TO PRESENTMERCHANDISE

IN THE WINDOW DISPLAY

(with the mannequin)

ON THE SELLING FLOOR ON FIXTURES

CROSS-PRESENTATION• Putting related products together to

encourage customers to buy more

Item Cross-presented with

Pencil Pencil-case/erasers/rulers

Shirts Suits/ties/pants/cuff links

Sport shoes Shoe laces/ socks/ shoe spray

toothbrush Toothpaste, dental floss, mouth rinse

Laptop Printer/ Thumbdrive/laptop cover