Retailing and Store Types: Key Concepts and Strategies

retailing

all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use

retailer

the market intermediary that sells goods and services to the final consumer

independent retailers

retailers owned by a single person or partnership and not operated as part of a larger retail institution

chain stores

stores owned and operated as a group by a single organization

gross margin

the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted

department store

a store housing several departments under one roof

specialty store

a retail store specializing in a given type of merchandise

supermarkets

large, departmentalized, self-service retailers that specialize in food and some nonfood items

scrambled merchandising

the tendency to offer a wide variety of nontraditional goods and services under one roof

drugstores

retail stores that stock pharmacy-related products and services as their main draw

convenience store

a miniature supermarket, carrying only a limited line of high-turnover convenience goods

discount store

a retailer that competes on the basis of low prices, high turnover, and high volume

full-line discount stores

retailers that offer consumers very limited service and carry a broad assortment of well-known, nationally branded hard goods

mass merchandising

a retailing strategy using moderate to low prices on large quantities of merchandise and lower levels of service to stimulate high turnover of products

supercentres

retail stores that combine groceries and general merchandise goods with a wide range of services

specialty discount stores

retail stores that offer a nearly complete selection of single-line merchandise and use self-service, discount prices, high volume, and high turnover

category killers

specialty discount stores that heavily dominate their narrow merchandise segment

warehouse membership clubs

limited-service merchant wholesalers that sell a limited selection of brand-name appliances, household items, and groceries to members, small businesses, and groups

off-price retailer

a retailer that sells brand-name merchandise at considerable discounts

factory outlet

an off-price retailer that is owned and operated by a manufacturer

nonstore retailing

provides shopping without visiting a store

automatic vending

the use of machines to offer goods for sale

self-service technologies (SST)

technological interfaces that allow customers to provide themselves with products and/or services without the intervention of a service employee

direct retailing

the selling of products by representatives who work door-to-door, office-to-office, or at in-home parties

direct marketing (direct-response marketing)

techniques used to get consumers to make a purchase from their home, office, or another non-retail setting

direct mail

a printed form of direct-response communication that is delivered directly to consumers' homes

telemarketing

the use of telecommunications to sell a product or service; involves both outbound and inbound calls

shop-at-home television network

a specialized form of direct-response marketing whereby television shows display merchandise, with the retail price, to home viewers

online retailing (e-tailing)

a type of shopping available to consumers with personal computers and access to the Internet

omni channel retailing

an approach that combines the advantages of the physical store experience with the information-rich experience of online shopping, providing the consumer with a seamless experience through all available shopping channels

webrooming

researching a product online and then going to a store to buy it

showrooming

searching for a product in a store and then going online to try to find it at a better price

franchise

a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee

franchiser

the originator of a trade name, product, methods of operation, and so on, that grants operating rights to another party to sell its product

franchisee

an individual or a business that is granted the right to sell a franchisor's product

retailing mix

a combination of the six Ps—product, place, promotion, price, presentation, and personnel—to sell goods and services to the ultimate consumer

product offering

the mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix

brand cannibalization

the reduction of sales for one brand as the result of the introduction of a new product or promotion of a current product or brand

destination stores

stores that consumers purposely plan to visit

pop-up shop

temporary retail space that sells merchandise of any kind

atmosphere

the overall impression conveyed by a store's physical layout, decor, and surroundings

shopper marketing

understanding how one's target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to generate sales or other positive outcomes

shopper analytics

searching for and discovering meaningful patterns in shopper data for the purpose of fine-tuning, developing, or changing market offerings

big data analytics

the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior

click-and-collect

the practice of buying something online and then traveling to a physical store location to take delivery of the merchandise