Retail Management Lesson 1-7

the business

activities involved in selling goods

and services to consumers for their

personal, family, or household use.

Retailing

every sale to the final

consumer

Retailing

the businesses and people involved in

the physical movement and transfer

of ownership of goods and services

from producer to consumer.

Distribution Channel

is the last stage in a

channel of distribution—all

Retailing

Process of Distribution Channel

1. Manufacturer

2. Distributor

3. Wholesaler

4. Retailer

5. End-Consumer

Retailer Derived from what French word?

Retaillier “ To cut a peace” or “to break bulk”

is a business strategy that integrates all customer touchpoints—online and offline—into one seamless, unified experience, ensuring customers don’t face gaps or redundancies when switching between platforms.

Omnichannel

Retailers often act as the contact

between manufacturers, wholesalers,

and the consumer.

RETAIL FUNCTIONS IN

DISTRIBUTION

Retailers collect an assortment from

various sources, buy in large quantity,

and sell in small amounts (sorting

process)

RETAIL FUNCTIONS IN

DISTRIBUTION

RETAIL FUNCTIONS IN

DISTRIBUTION (2)

1. Retailers often act as the contact

between manufacturers, wholesalers,

and the consumer.

2. Retailers collect an assortment from

various sources, buy in large quantity,

and sell in small amounts (sorting

process)

This process refers to the activity of classifying and arranging products into categories or groups based on specific criteria such as size, brand, quality, destination, or customer order.

Sorting process

are major customers of goods and services for resale.

retailers

whereby suppliers make agreements with one or

a few retailers that designate the latter

as the only ones in specified geo

graphic areas to carry certain brands or

products.

Exclusive Distribution

Channel relations tend to be smoothest in this distribution

Exclusive Distribution

Channel relations tend to be most volatile in this distribution

Intensive Distribution

suppliers sell through as many retailers as possible.

Intensive Distribution

suppliers sell through a moderate number of retailers.

Selective Distribution

This combines aspects of

exclusive and intensive distribution.

Suppliers have higher sales than in

exclusive distribution, and retailers carry

some competing brands.

Selective Distribution

SPECIAL CHARACTERISTICS OF RETAILING 2

The average amount of a sales

transaction for retailers is much less

than for manufacturers.

Final consumers make many

unplanned or impulse purchases

is the overall plan

guiding a retail firm. It influences the

firm’s business activities and its response

to market forces, such as competition

and the economy.

Retail Strategy

6 steps in DEVELOPING AND APPLYING A RETAIL STRATEGY

Step 1. Define the type of business in

terms of the goods or service category

and the company’s specific orientation

(such as full service or “no frills”).

Step 2. Set long-run and short-run

objectives for sales and profit, market

share, image, and so on.

Step 3. Determine the customer market

to target on the basis of its

characteristics (such as gender and

income level) and needs (such as

product and brand preferences).

Step 4. Devise an overall, long-run plan

that gives general direction to the firm

and its employees.

Step 5. Implement an integrated

strategy that combines such factors as

store location, product assort ment,

pricing, and advertising and displays to

achieve objectives.

Step 6. Regularly evaluate performance

and correct weaknesses or problems

when observed.

businesses operate only through physical stores

Brick and Mortar

businesses combine both physical stores and online platforms, offering customers a hybrid shopping experience.

Click and Mortar

The retailer determines the attributes and

needs of its customers and endeavors to

satisfy these needs to the fullest.

Customer-orientation

The retailer integrates all plans and

activities to maximize efficiency.

Coordinated Effort

The retailer offers good value to customers,

whether it be upscale or discount. This

means having prices appropriate for the

level of products and customer service.

Value-driven

The retailer sets goals and then uses its

strategy to attain them.

Goal-orientation

includes all

the elements in a retail offering that

encourage or inhibit consumers during

their contact or journey with a retailer.

Total Retail Experience

refers to the identifiable, but sometimes intangible,

activities undertaken by a retailer in

conjunction with the basic goods and

services it sells.

Customer Service

refers to

establishing and maintaining long-

term bonds with customers, rather

than act as if each sales transaction is

a completely new encounter.

Relationship Retailing

It has a strong impact on the total retail experience.

Customer Service

can also viewed as a

significant contributor to the economy in

general.

Retailing Activity

In the last two decades of the twentieth century, develop nations have

seen the economies change from being

_________ to being ________,

in terms of wealth creation, employment

and investment.

manufacturing-led to being service-led,

is frequently referred to economic indicator. It

is a measure that is based on a “basket” of

products across all retail sectors and

compares prices over time in order to

reveal the changes in cost to the

households of typical purchase needs.

Retail Price Index

Retail price index is also referred as?

An economic indicator

THE RETAIL INDUSTRY- ITS

CONTRIBUTION TO THE SOCIETY(5)

Advertising and promotion

Shops provide advice and guidance

Shops negotiate and form contracts

Shops take or arrange for payment and accept risk of default

Shops handle warranty claims and after-sales facilities

refers to the governance of a retail business’s daily operations.

Retail Management

The ultimate goal for retail companies is to_____________

improve the customer experience.

Retailor provides the goods that consumer needs, in a desired form, at a required

time and place.

Function of Retailer

refers to the process of bringing people together on a common

platform and make them work as a single unit to achieve the goals and objectives of an

organization.

Management

is required in all aspects of life and forms of integral part of all

businesses.

Management

The various processes which help the customer procure the desired merchandise

from retail stores for their end use

Retail management

Shopping is more than the mere obtaining of goods it’s__________.

experiential

are a business’s lifeblood, ambassadors, and the living manifestation of the brand. As

Employees

This is the starting point. Retailers need to plan what products they will

sell, how many to stock, and where to direct and store them. They also plan pricing

strategies for products and goods.

Planning

Retailers then purchase the products they plan to sell.

This involves negotiating with suppliers, making orders, and managing inventory.

It’s like going for shopping in your store.

Buying and procurement

is all about keeping track of what

you have in stock. Retailers need to know when to reorder products so they don’t

run out of things customers want.

Inventory Management

This is about how products are displayed in the store.

Retailers arrange their products to grab customers’ attention.

Visual Merchandising

When customers come to the store, retailers and

their staff help them find what they need, answer questions, and make the

shopping experience enjoyable. It’s like being a helpful host at a party.

Sales and customer service

is the step-by-step approach that businesses

follow to effectively run their retail operations and ensure customer satisfaction.

Retail management process

Filling shelves, maintaining displays, and reordering stock to avoid

understock or overstock.

Stock

Maintaining suitable storage areas accessible to staff but out of sight

and reach of customers.

Storage

Applying price tags, updating pricing to reflect sales and retail industry

changes, and promoting coupons, store cards, and rewards/loyalty programs.

Pricing

Examining merchandise and keeping it in pristine, functional

condition.

Quality Control

Inventory Management process (4)

Stock, Storage, Pricing, Quality Control

is the practice of overseeing, supporting, and optimizing a company’s workforce across its entire lifecycle

Employee management

2 parts of employee management

Staffing, Training

Staffing process

Hiring, onboarding, supervision

Retail managers should evaluate experience, skill, values,

personality, and goals

hiring

New hires should learn the skills they need to succeed, gain

product knowledge, and develop a complete understanding of the brand,

mission, operations, and policies.

onboarding

Managers should encourage productivity, integrity, empathy,

and drive within their team.

Supervising

prepares employees to address nearly any issue, even as the business grows and evolves.

Training

plays a crucial role in the world of business, and its importance

is hard to overstate. It’s not just about selling products; it’s about making sure customers

have a great shopping experience and that businesses make profits.

Retail management

IMPORTANCE OF RETAIL MANAGEMENT (10)

Customer Satisfaction, Efficient Operations, Inventory Control, Staff Management, Financial Management, Marketing and Sales, Adaptation to Trends, Competition, Customer Feedback, Risk Management

characteristic pertaining to ease of access

Convenience

Retailers are changing their business formats, store designs, modes of

communication with customers and ways of handling commercial dealings.

Changing nature of retailing

The main aim of any retail business is to satisfy

customers. Retail management ensures that the right products are available, the

store is clean, and the staff is helpful

Customer Satisfaction

Retail managers make sure everything in the store runs

smoothly. They plan the layout, manage inventory, schedule staff, and handle day-

to-day tasks. This efficiency helps the business save time and money.

Efficient Operations

Retail management is responsible for keeping track of what’s

in stock and what needs to be replenished. This prevents overstocking (which ties

up money) and understocking (which leads to missed sales).

Inventory Control

Hiring and training the right people is crucial in retail.

Managers ensure employees are well-prepared to assist customers and handle

various tasks. A skilled and motivated team can significantly impact a store’s

success.

Staff Management

Retail managers handle budgets, pricing, and financial

reports. They need to balance the books to ensure the business remains profitable.

Proper financial management is essential for long-term success.

Financial Management

Promotions, advertisements, and in-store displays are all

part of retail management. These tactics attract customers and boost sales.

Managers need to be creative to make the store appealing.

Marketing and Sales

The retail world is ever-changing, with new technologies

and shopping trends. Retail managers must stay updated and adapt the business

accordingly, whether it’s adding e-commerce options or embracing sustainability.

Adaptation to Trends

In today’s competitive market, a well-managed store can make all

the difference. Retail management helps the business stand out by offering unique

products, excellent customer service, and a great shopping atmosphere.

Competition

Retail managers are the bridge between customers and the

business. They collect feedback, complaints, and suggestions from customers and

convey this information to improve the store. Listening to customers helps the

business grow.

Customer Feedback

Unexpected challenges like theft, supply chain disruptions, or

natural disasters can disrupt a retail business. Retail managers plan for these risks

and implement security measures to safeguard the business.

Risk Management

has always been a proponent of diversity.

The Retail Industry

allows retailers to reduce costs and improve

customer services.

Technology

have revolutionized customer

service in terms of reducing the merchandise checkout time drastically.

It is the process of selling or purchasing the products

using Internet for B2B or B2C transactions.

E-Tailing

process includes the customer’s visit

to the website, purchasing products by choosing a mode of payment, product delivery by

the retailer and finally, the customer’s review or feedback.

E-tailing Process

Successful e-tailing requires ______

strong branding.

must be engaging, easily

navigable, and regularly updated to meet consumers' changing demands.

Websites

need to stand out from competitors' offerings and add value to consumers' lives.

Products and Services

must be competitively priced so that consumers do not favor

one business over another just for price reasons.

Company’s offering

This business practices is also important, so consumers trust and stay loyal to a company.

Transparency

TYPES OF ELECTRONIC RETAILING (E-TAILING)

B2B E—tailing and B2C E-tailing

is the basic format or structure of a business.

retail institution

shows the relative sizes and diversity of different kinds of retailing, and

indicates how various retailers are affected by the external environment.

Institutional Discussions

is important in strategic planning when selecting an organizational mission,

choosing an ownership alternative, defining the goods/service category, and setting

objectives.

Institutional Analysis

may operate as few as one facility or as

many as several thousand locations.

Store-based retail firms

retailer owns one retail unit.

Independent

The management has direct contact with the customers and can quickly respond to their needs.

Independent Retailer

There are about ___ of independent retailers in the U.S, this is associated with

the ease of entry into the marketplace, due to low capital requirements and no licensing

provisions for 24 many small retail firms. The

There are about 70% of independent retailers in the U.S, this is associated with

the ease of entry into the marketplace, due to low capital requirements and no licensing

provisions for 24 many small retail firms.

Most failures involve_____ retailers

Independent retailers

a retailer that operates multiple outlets (store units) under common

ownership.

Chain

It usually engages in some level of centralized (or coordinated) purchasing

and decision making.

Chain

It involves contractual arrangement

Franchise

they typically pays an initial fee and a monthly percentage of gross sales in exchange for the exclusive rights to sell goods and services in an area.

Franchisee

conduct a given form of business under an established name and according to a given pattern of business.

Franchise