McGraw-Hill/Irwin

Levy/Weitz: Retailing Management, 4/e

Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
Chapter 1
Introduction to the
World of Retailing
Irwin/McGraw-Hill
Levy/Weitz: Retailing Management, 4/e Copyright !""# $y %he McGraw-Hill Companie&, Inc' (ll right& re&erve)'
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
PPT 1-1
The Dynamic
Retailing Environment

Information and Communication Technology

POS, EDI, ECR, QR

lo!ali"ation
#cDonald$ %round the &orld, &almart in China,
#e'ico, (ra"il

Electronic Retailing
%ma"on)com, #acy)com, eToy$, e(ay,
*CPenney)com

Entertainment in Retailing
+i,eto-n, (a$$ Pro Sho., #all of %merica
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
Definition of Retailing
Retailing i$ a $et of !u$ine$$ activitie$ that add$
value to the .roduct$ and $ervice$ $old to
con$umer$ for their .er$onal or family u$e)
% retailer i$ a !u$ine$$ that $ell$ .roduct$ and/or
$ervice$ to con$umer$ for the .er$onal or family
u$e)
PPT 1-2
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
E'am.le$ of Retailer$

Retailer$
0 Sear$, 1oliday Inn, #cDonald$, %ma"on)com, *iffy 2u!e,
The a.

3irm$ that are retailer$ and -hole$aler$ $ell

to other !u$ine$$e$ a$ -ell a$ con$umer$
0 Office De.ot, 1ome De.ot, 4nited %irline$, (an, of %merica
PPT 1-3
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Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
Di$tri!ution Channel
PPT 1-4
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Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
Different Per$.ective$ of Retailer$
Manufacturers
Perspective
One of the Controlla!le
Element$ in the 3irm5$
#ar,eting Program
One of the 3our P5$
Retailers Perspective

% (u$ine$$ -ith all the (u$ine$$
3unction$
Production
(uying
#erchandi$e, Private 2a!el
#ar,eting
1R
%ccounting and 3inance
PPT 1-5
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
6alue %dded !y Retailer$

Providing %$$ortment

(rea,ing (ul,

1olding Inventory

Offering Service$
PPT 1-6
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
Manufacturer Distributor Retailer
$1.00 $1.20 $2.00
$.85 $.15
$.70
Customer
Sale
Price
PPT 1-7
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
lo!al Com.ari$on
US Japan
Concentration High Medium
Store Size Big Small
Role of
Wholesaling
Low High
Efficiency High Low
PPT 1-8
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
Economic Significance
of Retailing

Over 78)9 Trillion in %nnual 4)S) Sale$

reater than medical care, hou$ing, recreation

com!ined

Em.loy$ :;< of .o.ulation

%!out the $ame a$ manufacturing and gro-ing

#anagement Training O..ortunitie$

Entre.reneurial O..ortunitie$
PPT 1-9
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
PPT 1-10
Pro=ected *o! ain$
Source: US !e"artment of Commerce
Retail #anagement
Deci$ion Proce$$
The World of Retailing - Section 1
:) Introduction to the &orld of Retailing
8) Store(a$ed Retailing
>) +on$tore Retailing Electronic Retailing and Catalog$
?) The Retail Cu$tomer
9) Cu$tomer (uying (ehavior
Retailing Strateg - Section !
@) Retail #ar,et Strategy
A) 3inancial Strategy
;) Retail 2ocation$
B) Site Selection
:C) Organi"ation Structure and 1uman Re$ource #gmt)
::) Integrated Retail 2ogi$tic$ and Information Sy$tem$
Merchandise Mgmt" -# Store Management -$
:8) Planning #erchandi$e :A) #anaging the Store
%$$ortment$ :;) Store 2ayout, De$ign,
:>) (uying Sy$tem$ and 6i$ual #erchandi$ing
:?) (uying #erchandi$e :B) Cu$tomer Service
:9) Pricing
:@) Retail Promotion #i'
Irwin/McGraw-Hill
Levy/Weitz: Retailing Management, 4/e Copyright !""# $y %he McGraw-Hill Companie&, Inc' (ll right& re&erve)'
PPT 1-11
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
*CPenney5$ Strategic Evolution

#ain Street .rivate la!el $oft good$ retailer

Change$ in environment increa$ed

di$.o$a!le income, gro-th of $u!ur!$,
inter$tate high-ay .rogram

Emulate Sear$ in enclo$ed $u!ur!an mall$

3ocu$ on $oft good$ dro. automotive,

$.orting good$, hard-are

Start catalog, electronic retailing

3uture DEF
PPT 1-12
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Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
Sear$5 Strategic Evolution

2arge num!er of merchandi$e categorie$

a..liance$, hard-are, a..arel

#all$ evolve into .lace$ for !uying $oft good$,

hard good$ $old at category ,iller$

The Softer Side of Sear$

Refocu$ing on value Te$ting cart$ in $tore$

PPT 1-13
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Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
&hole 3ood$ Im.lementation

Strategy Organic and natural food$

$u.ermar,et chain
0
%$$ortment !eyond organic/natural food$
0
Private la!el$ &hole 3oodG, >@C Day 6alueG
0
2ove, tru$t, and em.loyee em.o-erment
0
EHuality in com.en$ation
PPT 1-14
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
#i$conce.tion$ a!out
Career$ in Retailing

&hy go to college to !e a $ale$ cler,E

2o- .ay

2ong hour$

(oring
PPT 1-15
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
&hy Should Iou
Con$ider RetailingE

Entry level management .o$ition$

0
De.artment manager or a$$i$tant !uyer
0
#anage .eo.le and have PJ2 re$.on$i!ility on your
fir$t =o!

Starting .ay average, !ut com.en$ation

e'cellent if you are $ucce$$ful

Something ne- and different each day

(uying for num!er$ .eo.le, $tore management

for .eo.le .eo.le
PPT 1-16
McGraw-Hill/Irwin
Levy/Weitz: Retailing Management, 4/e
Copyright 2001 by The McGraw-Hill Companies, Inc. ll rights reser!e".
Ty.e$ of *o!$

#o$t entry level =o!$ in $tore management

and !uying

Retailer$ al$o have $taff $.eciali$t$

0
%ccounting and finance
0
Real e$tate
0
1uman re$ource management
0
Com.uter information $y$tem$
0
Su..ly chain management
0
%dverti$ing and .u!lic relation$
PPT 1-17