Retail Management Exam Notes

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Ch. 1 World of Retailing
* Retailing: the set of business activities that adds value to the products and services sold to consumers for their personal use or family use * Retailer: a business that sells products and/or services to consumers for their personal or family use * Supply Chain: set of firms that make and deliver goods and services to consumers * Wholesalers: engage in buying, taking title to, often storing, and physically handling goods in large quantities and then reselling the goods to retailers and other businesses * Vertical Integration: that a form performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply its stores * Backward Integration: when a retailer performs some wholesaling and manufacturing activities, such as operating warehouses or designing private-label merchandise Why are retailers needed?

1. Provide an assortment of products and services
2. Breaking bulk
3. Holding inventory
4. Providing services
* Corporate Social Responsibility (CSR): an organization voluntarily taking responsibility for the impact of its activities on its employees, customers, community and the environment * Intratype Competition: competition between same type of retailers * Intertype Competition: competition between retailers that sell similar merchandise using different types of stores, such as discount and department stores * Scrambled Merchandising: When retailers offer merchandise not typically associated with their type of store * Retail Strategy: how the retailer plans to focus its resources to accomplish its objectives 1. Target market, or markets, toward which the retailer will direct its efforts 2. The nature of the merchandise and services the retailer will offer to satisfy the needs of the target market 3. How will the retailer will build a long-term advantage over its competitors * Ethics: principles governing individuals and companies that establish appropriate behavior and indicate what is right or wrong

Ch. 2 Types of Retailers
* Variety: number of merchandise bur differ in the variety and assortment of merchandised offered- Breadth of Merchandise * Assortment: number of different items offered in a merchandise category- Depth of Merchandise * Stock-Keeping Unit(SKU): each different item of merchandise * Conventional Supermarket: large self-service retail food store offering groceries, meat, and produce, as wells as nonfood items, such as health and beauty aids and general merchandise- stock about 30000 SKU’s * Limited Assortment Supermarkets or Extreme-Value Food Retailers: stock about 200 SKU’s * Power Perimeter: fresh-merchandise along the outer walls of a supermarket, that include dairy, meat, floral, produce, deli and coffee bar * Fresh Supermarkets: smaller and more convenient than a traditional supermarket and have less space devoted to packaged goods * Fair Trade: practice of purchasing from factories that pay workers a living wage, and offer other benefits like onsite medical treatment * Locavore Movement: focuses on reducing carbon footprint caused by transportation of food throughout the world * Supercenters: large 185000 sq ft that combine a supermarket with a full-line discount store Ex. Wal-Mart * Hypermarkets: 100000 to 300000 sq ft combine food (60 to 70%) and general merchandise (30 to 40%) * Warehouse Clubs: retailers that offer limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses * Convenience Stores: provide a limited variety and assortment of merchandise at a convenient location in 3000 to 5000 sq ft stores with speedy checkout * Department Stores: retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct...
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