STORE-BASED RETAILINGMARKETING & ADVERTISING MRS. BELTRA

OBJECTIVES• IDENTIFY THE TYPES OF STORE-BASED RETAILERS.• EXPLAIN THE IMPORTANCE OF SERVICE RETAILERS.• IDENTIFY THE TYPES OF SERVICE RETAILERS.

STORE-BASED RETAILER:A RETAILER WHO OPERATES AND CONDUCTS BUSINESS FROM A FIXED LOCATION.

• OPERATES AND CONDUCTS BUSINESS FROM A FIXED LOCATION.

• ALLOWS WALK-IN CUSTOMER TRAFFIC.• DISPLAYS MERCHANDISE FOR PURCHASE.• MAKE STORE APPEALING.• MOST COMMON FORM OF RETAILING

GENERAL MERCHANDISE RETAILER: A RETAILER WHO SELLS A LARGE VARIETY OF MERCHANDISE

• DEPARTMENT STORES• JUNIOR

DEPARTMENT STORES• SPECIALTY STORES• CATEGORY

SPECIALTY STORES

• DISCOUNT DEPARTMENT STORES• VARIETY STORES• OFF-PRICE

STORES• OUTLET STORES

DEPARTMENT STORES: A RETAILER WHO SEPARATES MERCHANDISE INTO DIFFERENT DEPARTMENTS OR SECTIONS

• ASSORTMENT OF GOODS, INCLUDING FURNITURE, LINENS, CLOTHING, HOUSEWARES

• WIDE RANGE OF CUSTOMER SERVICE• PHYSICALLY LARGE • USED AS ANCHOR STORE IN MALL • LARGE STAFF• ORIGINATED IN MAIN SHOPPING AREAS OF LARGE CITIES• MACYS, SEARS

• BRANCH STORES • A SMALLER STORE OPERATED BY A DEPARTMENT STORE THAT

CARRIES A LIMITED RANGE OF MERCHANDISE.• TAILORED TO THE CUSTOMERS NEED.• EXAMPLE: LARGE POPULATION OF FAMILIES, RETAILER CARRY

LARGE SELECTION OF CHILDREN CLOTHING/SHOES

• TWIG STORE • OWNED AND OPERATED BY DEPARTMENT STORES. • SMALLER THAN A DEPARTMENT STORE AND CARRY A LIMITED LINE

OF MERCHANDISE.

• BUSINESS AREA, STORE MIGHT CARRY MERCHANDISE GEARED TO BUSINESS ATTIRE

CHARACRTERISTICS OF COMPETITION

• WIDE SELECTION OF MERCHANDISE• CONVENIENCE OF TAKING CARE OF MANY SHOPPING NEEDS

WITH ONE STOP• PRICES MAY BE HIGHER THAN OTHER RETAILER TYPE STORES

DUE TO COST OF EMPLOYEE SALARIES, FINANCE INVENTORY, AND EXPENSES THAT AFFECT DAY TO DAY

• MUST BE CREATIVE TO KEEP UP WITH OTHER STORES

JUNIOR DEPARTMENT STORES: A SMALLER VERSION OF A DEPARTMENT STORE THAT DOES NOT CARRY AS MANY MERCHANIDSE LINES.

• SEPARATE MERCHANDISE INTO DEPARTMENTS• DO NOT CARRY ALL MERCHANDISE AS A DEPARTMENT STORE • SPECIALIZE IN JUST A FEW MERCHANDISE LINES• PRICES ARE HIGHER THAN OTHER RETAILERS TO PAY FOR

LARGE STAFF AND OTHER EXPENSES• NEIMAN-MARCUS AND SAKS FIFTH AVENUE

SPECIALTY STORES: A STORE THAT SELLS A LIMITED TYPE OF MERCHANDISE.

• LIMITED TYPE OF MERCHANDISE.

• OFFERS PERSONAL CUSTOMER SERVICE

• SLIGHTLY HIGHER PRICES

• SMALL STAFF

• BARNES & NOBLE, WILLIAMS-SONOMA, FOOT LOCKER.

CATEGORY SPECIALTY STORES

• CARRY A COMPLETE ASSORTMENT OF MERCHANDISE AT DISCOUNTED PRICES.

• DOMINATE CATEGORY

• EXAMPLE TOYS “R” US

DISCOUNT DEPARTMENT STORE:A DEPARTMENT STORE THAT SELLS MERCHANDISE AT LOW PRICES.

• NOT CONCERNED WITH AMBIANCE OF STORE

• LOW PRICEs = BUY GOODS IN LARGE VOLUMES.

• SELF-SERVICE

• MEDIUM SIZED STAFF

• EXAMPLE TARGET, WALMART

VARIETY STORES:A SMALL RETAIL OUTLET THAT SELLS A VARIETY OF LOW-PRICED MERCHANDISE

• USUALLY SELL COSMETICS, SMALL HOUSEWARES, SOUVENIRS, POSTCARDS, AND STATIONERY.

• LIMITED ITEMS• SMALL STAFF• NOT TOO COMMON

OFF-PRICE STORES:A RETAILER WHO BUYS MERCHANDISE DIRECTLY FROM THE MANUFACTURER AND SELLS IT AT LOW PRICE.• BUY END-OF-SEASON ITEMS, OVERPRODUCED ITEMS, AND ITEMS RETURNED FROM OTHER RETAILERS. • MAY HAVE DIFFERENT MERCHANDISE WITH EVERY

VISIT. • MARSHALL, TJMAXX, CENTURY 21

OUTLET STORES:A MANUFACTURER OWNED STORE, ALSO CALLED A FACTORY STORE, THAT SELLS OVERPRODUCED OR RETURNED MERCHANDISE AT LOW PRICE.

• AKA FACTORY STORES• PRIOR-SEASON MERCHANDISE, DISCONTINUED LINES,

MANUFACTURER SECONDS, AND SLIGHTLY IRREGULAR ITEMS.• PRICES ARE LOWER BUT NOT ALWAYS THE LATEST

STYLES• LITTLE CUSTOMER SERVICE

• IRREGULAR ITEMS• GAP OUTLET, BANANA REPUBLIC OUTLET

WAREHOUSE AND WHOLESALE CLUBS:A LARGE STORE THAT OFFERS VOLUME DISCOUNT PRICES AND MINIMAL VARIETY, PRESENTATION, AND SERVICE.

• PAY A MEMBERSHIP• SELLS IN BULK OR LARGE QUANTITIES. • EXAMPLE SAM’S CLUB, BJ’S

SUPERMARKETS:A SELF-SERVICE DEPARTMENT STORE THAT SELLS MOSTLY FOOD AND OTHER RETAIL MERCHANDISE. • DEPARTMENT STORES OF FOOD RETAILING.

• BAKERY, DELI, DAIRY, PRODUCE, AND MEAT

CONVENIENCE STORES:A SMALL RETAIL OUTLET THAT SELLS CONVENIENCE FOODS AS WELL AS STAPLES AND HOUSEHOLD ITEMS AT HIGHER PRICES.

• SELLS SNACK FOOD ITEMS SUCH AS CANDY AS WELL AS BREAD. • MAY OPEN 24/7 • EXAMPLE 7-11

SUPERCENTERS:A COMBINATION OF A LARGE DISCOUNT DEPARTMENT STORE AND A DISCOUNT SUPERMARKET.

• EXAMPLE SUPER WAL-MART

SERVICE RETAILER:A RETAILER WHO SELLS SOMETHING THAT IS INTANGIBLE OR DOES NOT LAST VERY LONG.

• NOT DEPENDENT ON SOMETHING YOU CAN TOUCH, LOOK AT, OR USE LATER

• OPERATE IN A FIXED LOCATIONS• CLOSE CONTACT WITH CLIENTS

FINANCIAL SERVICES:A RETAILER WHO PROVIDES PERSONAL FINANCIAL SERVICES.

• EX. BANKS, CREDIT UNIONS, ACCOUNTING FIRMS, TAX PREPARATION FIRMS, INSURANCE COMPANIES, STOCK BROKERAGE FIRMS.

HOSPITALITY AND LODGING SERVICES:RETAIL SERVICES THAT PROVIDE YOU WITH A PLACE TO LIVE IN COMFORT FOR ONE OR SEVERAL DAYS.

• EX. HOTELS, MOTELS, INNS • EXAMPLES PROVIDE BREAKFAST, DRY CLEANING, CABLE TV,

GIFT SHOPS, CONCIERGE• CAMP GROUNDS ARE ANOTHER EXAMPLE. CAMPERS RENT

SPACE AT THE CAMP SITES, SHOWER, GRILLS.

MAINTENANCE AND REPAIR SERVICE:A RETAILER WHO PROVIDES SERVICES THAT REQUIRE SPECIAL TRAINING AND/OR SPECIAL EQUIPMENT.

• HOUSECLEANING, LAWN CARE, LANDSCAPE MAINTENANCE, POOL SERVICE.

• MANY REPAIR BUSINESSES ARE SMALL, INDEPENDENT RETAILERS. EXAMPLES WATCH OR JEWELRY REPAIR, CARPENTER, APPLIANCE REPAIR (REPAIR TECHNICIANS)

• AUTOMOBILE DEALERS PROVIDE REPAIR SERVICES. FORMAL TRAINING FOR MECHANICS.

PERSONAL SERVICES:SERVICES YOU USE TO ENHANCE PHYSICAL OR EMOTIONAL WELL-BEING.

• PHYSICIANS, OPTICIANS,, BARBERS, NAIL TECHNICIANS, DANCE TEACHERS, DENTISTS, HAIRSTYLISTS, MASSAGE THERAPISTS, PERSONAL PHOTOGRAPHERS, MUSIC TEACHERS, ALTERATIONS

RECREATION AND TOURISM SERVICES: A CATEGORY OF THE RETAILING INDUSTRY THAT PROVIDES LEISURE ACTIVITIES.

• BOWLING ALLEYS, AMUSEMENT PARKS, MOVIE THEATERS, LIVE THEATERS, CONCERT HALLS, HOBBY OR CRAFT STORE.

• TRAVEL AGENTS IS A TOURISM SERVICE PROVIDER.

RENTAL SERVICES:SERVICES THAT PROVIDE A WAY TO USE GOODS WITHOUT HAVING TO PURCHASE ANYTHING.

• CAR RENTALS, MOVIE RENTALS, TUXEDO RENTAL, LIMO RENTAL, TRUCK RENTAL, OFFICE / HOME FURNITURE RENTAL.

RESTAURANTS AND FOOD SERVICES

• ALMOST EVERY TYPE OF ESTABLISHMENT PROVIDES FOOD. • EXAMPLE CHILI’S, TACO BELL, SCHOOL CAF.

SECURITY SERVICES• PROTECT HOME, PERSON, AND PROPERTY. • HOME SECURITY SYSTEMS CAN BE INSTALLED • PERSONAL SAFETY PROVIDES SAFETY TRAINING

TRANSPORTATION • IN THE BUSINESS OF MOVING PEOPLE OR PRODUCTS FROM

ONE PLACE TO ANOTHER• EXAMPLE AIRLINES, TRAINS, BUS, TAXIS, LIMOS, TRUCKING

COMPANIES

A convenience store and an outlet store are the same thing. a. TRUE b. FALSE

General-merchandise retailers are not grouped with food retailers. a. TRUE b. FALSE

Hotels are an example of the recreation and tourism industry.

a. TRUE b. FALSE

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A store-based retailer does business only online and over the phone.

a. TRUE b. FALSE

Yoga classes are an example of a retail service. a. TRUE b. FALSE

This type of retailer sells a large variety of merchandise and offers customer services: a. department store b. junior department store c. discount department store d. all of the above

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This type of store concentrates on one type of thing or line of merchandise: a. variety store b. specialty store c. junior department store d. outlet store

Insurance companies are an example of this type of retailer: a. personal services b. recreation and tourism

c. financial services d. rental services

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Which of the following is NOT a food service retailer? a. restaurant b. caterer c. hotel d. specialty store

Which type of store is not as common as it once was?

a. junior department store

b. mall c. variety store d. video store

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CHECKING CONCEPTS*HAND IN*

1. DEFINE STORE BASED RETAILERS.2. DESCRIBE WHAT GENERAL MERCHANDISE RETAILERS SELL.3. NAME FOUR EXAMPLES OF GENERAL MERCHANDISE RETAILS. 4. IDENTIFY THREE MAINTENANCE AND REPAIR SERVICE

RETAILERS. 5. COMPARE SUPERCENTERS AND WAREHOSE CLUBS.6. DESCRIBE SERVICE RETAILERS.7. EXPLAIN WHAT THE HOSPITALITY AND LODGING INDUSTRY

PROVIDE.8. EXPLAIN WHY FOOD RETAILERS ARE CATEGORIZED

SEPARATELY.

GROUP WORK*HAND IN*• SELECT A SERVICE RETAILER. • MAKE UP A NAME, LOGO • PROVIDE ADDRESS AND PHONE NUMBER• PROVIDE YOUR SERVICES• Present to class

MATH*HAND IN*A. ONE OUTLET STORE SELLS JEANS FOR $45 BUT OFFERS A BUY

ONE GET ONE FREE DEAL. A DISCOUNT STORE OFFERS THE SAME JEANS FOR $23 A PAIR. WHICH STORE SELLS FOR LESS?

B. JAMES WOULD LIKE TO BUY A NEW STEREO. HE SEES TWO ADS FOR STEREOS IN THE NEWSPAPER. THE WAREHOUSE STORE HAS THE MODEL HE WANTS FOR $115.99. THE DEPARTMENT STORE HAS THE SAME MODEL AT $139.00 BUT ALL STEREOS ARE 20% OFF THIS WEEK. WHICH STORE SHOULD HE GO TO FOR THE BEST DEAL?