Rcsc214 Exam 1
Chapter 1
Retailing-consists of the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer.
Last step in supply chain.
Trends that affect Retailing today:
* E-tailing- ie. The Internet accounts for less than 5% of retail sales but has changed consumer behavior. (speed, convenience, control, vast info, lowest prices)
hasn’t destroyed …
*Bricks-and-Mortar retailers – Retailers that operate out of a physical building.’ but B & M retailers must give customers more control to combat E-tailing.
Outshopping-when customers get needed info (such as proper size or how to assemble a product) in the store and then orders it online for a lower price and to avoid paying sales tax.
* Price Competition
Loss Leader-selling a product at or below its cost
Bottom Line-net profit on an income statement
*Same-Store sales-compares an individual store’s sales to its sales for the same month in the previous year.
*Market Share-the retailer’s total sales divided by total market sales
*Scrambled Merchandising- exists when a retailer handles many different and unrelated items. The result of the pressure being placed on many retailers to increase profits by carrying additional merchandise or services (with higher profit margins) that will also increase store traffic ex. Convenience store that sells low margin gasoline but high margin bread, milk, beer, ciggs ETC. Supercenters, gift cards in grocery stores but causes cost increases in RENT, INVENTORY COSTS, LABOR COSTs
*Category Killer-a retailer that carries such a large amount of merchandise in a single category at such good prices that it makes it impossible for customers to walk out without purchasing that they need, thus KILLING the competition
Categorizing Retailers
Census Bureau- NAICS code
Number of outlets- Chain? Or not?
*Standard Stock list-a merchandising method in which all stores in a retail
Retailing-consists of the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer.
Last step in supply chain.
Trends that affect Retailing today:
* E-tailing- ie. The Internet accounts for less than 5% of retail sales but has changed consumer behavior. (speed, convenience, control, vast info, lowest prices)
hasn’t destroyed …
*Bricks-and-Mortar retailers – Retailers that operate out of a physical building.’ but B & M retailers must give customers more control to combat E-tailing.
Outshopping-when customers get needed info (such as proper size or how to assemble a product) in the store and then orders it online for a lower price and to avoid paying sales tax.
* Price Competition
Loss Leader-selling a product at or below its cost
Bottom Line-net profit on an income statement
*Same-Store sales-compares an individual store’s sales to its sales for the same month in the previous year.
*Market Share-the retailer’s total sales divided by total market sales
*Scrambled Merchandising- exists when a retailer handles many different and unrelated items. The result of the pressure being placed on many retailers to increase profits by carrying additional merchandise or services (with higher profit margins) that will also increase store traffic ex. Convenience store that sells low margin gasoline but high margin bread, milk, beer, ciggs ETC. Supercenters, gift cards in grocery stores but causes cost increases in RENT, INVENTORY COSTS, LABOR COSTs
*Category Killer-a retailer that carries such a large amount of merchandise in a single category at such good prices that it makes it impossible for customers to walk out without purchasing that they need, thus KILLING the competition
Categorizing Retailers
Census Bureau- NAICS code
Number of outlets- Chain? Or not?
*Standard Stock list-a merchandising method in which all stores in a retail