15-1

15-2

Retailing

Chapter 15Chapter 15Chapter 15Chapter 15

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

15-3

Chapter GoalsChapter GoalsChapter GoalsChapter Goals

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

• Nature of retailing• What retailer is• Types of retailers by ownership• Types of retailers by marketing strategies• Nonstore retailing, including online sales to

consumers• Trends in retailing

15-4

Retailing and RetailersRetailing and Retailers

RETAILER

A firm engaged primarily in retailing

RETAILER

A firm engaged primarily in retailing

RETAILING

All activities related to the saleof goods and services

to the ultimate consumersfor personal, nonbusiness use

RETAILING

All activities related to the saleof goods and services

to the ultimate consumersfor personal, nonbusiness use

15-5

Retail Trade in the U.S.Retail Trade in the U.S.

15-6

Distribution of Retail Stores and Distribution of Retail Stores and Sales by Number of EmployeesSales by Number of Employees

Distribution of Retail: Stores and Sales by Number of Employees.

15-7

Total Sales of 10 Largest RetailersTotal Sales of 10 Largest Retailers

15-8

Competitive Positions of LargeCompetitive Positions of Large and Small Retailers and Small Retailers

15-9

RetailingRetailing

OperatingExpenses

andProfits

OperatingExpenses

andProfits

PhysicalFacilitiesPhysicalFacilities

Classificationof

Retailers

Classificationof

Retailers

15-10

Retailers Classified by OwnershipRetailers Classified by Ownership

Corporate Chains Corporate Chains

Independent StoresIndependent Stores

15-11

Contractual Vertical Marketing Contractual Vertical Marketing SystemsSystems

Retailer Cooperatives

Retailer Cooperatives

VoluntaryChains

VoluntaryChains

FranchiseSystems

FranchiseSystems

15-12

Retailers Classified by Marketing Retailers Classified by Marketing StrategiesStrategies

15-13

Nonstore RetailingNonstore Retailing

AutomaticVending

AutomaticVending

TelemarketingTelemarketingDirect SellingDirect Selling

OnlineRetailingOnline

Retailing

15-14

Direct MarketingDirect Marketing

Direct MailDirect Mail

TelevisedShoppingTelevisedShopping

CatalogueCatalogue

15-15

Institutional Change in RetailingInstitutional Change in Retailing

Shakeout from

overbuilding

Shakeout from

overbuilding

Adapt to consumer

trends

Adapt to consumer

trends

Bricks and clicks

Bricks and clicks

WebsitesWebsites KiosksKiosks

15-16

Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

• Retailing

• Retail trade

• Physical facilities

• Shopping center

• Corporate chain

• Independent retailer

• Contractual vertical marketing system

• Retailer cooperative

• Voluntary chain

• Franchising

• Product and trade name franchising

• Business format franchising

• Department store

• Discount retailing

• Discount store

• Supercenter

• Limited-line store

15-17

Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

• Specialty store

• Off-price retailer

• Category-killer store

• Supermarket retailing

• Supermarket

• Convenience store

• Warehouse club

• Nonstore retailing Direct selling

• Telemarketing

• Automatic vending

• Online retailing

• Direct marketing