Chapter_13_-_retailing

Chapter_13_-_retailing - Study Guide for Marketing 431...

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Study Guide for Marketing 431 Summer 2009 Chapter 13 – Retailing What is a retailer? Retailing All activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. Retailing facts Size of market Huge - $2 trillion + Concentrated – 0.3% of stores account for 44% of sales Margins Operating expense 28% of sales Profits 3% of sales And this means to you… 15,197,000 Employed in retail (Bureau of labor Statistics, October 2006) 10% of workforce If you haven’t yet worked in a retail situation, you probably will before you retire. Even if you don’t, you need to understand retailing to understand how business works Evolution of Retailing Study Guide for Chapter 13 – Retailing Page 1 Marketing 431, Summer 2009 © 2009
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Retailing is a moving target. Successful new models are continually being introduced while outmoded models are being discarded. Anybody know what a greengrocer is? Two theories Wheel of retailing hypothesis New retail concepts enter at the low end of the market and gradually move upscale Low prices give them a foothold Gradually move upscale in order to improve margins Target Wal-mart Higher margins create opportunity for new low end outlets Two theories Retail life cycle Retail concepts have a “product life cycle” Introduction – concept is new Growth – concept attracts imitators Maturity – Industry is “over-stored” Decline Exit market Evolve Factors that drive the evolution of retail concepts Study Guide for Chapter 13 – Retailing Page 2 Marketing 431, Summer 2009 © 2009
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Demographics
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This note was uploaded on 10/16/2011 for the course MKTG 431 taught by Professor Brucerobertson during the Spring '07 term at S.F. State.

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Chapter_13_-_retailing - Study Guide for Marketing 431...

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