Describe structure and organisation of the retail sector.
Definition of retailing:
Retailing is to provide services and products to make profit. Retailing consists of the sale of goods for personal or household consumption operating from an appropriate location offering wide range of access to its target audience. For example a supermarket like C1000. Ensuring enough stock is available to meet customer demand is very important. Ways and places in which retail is conducted.
Classification of types of store
There are many types of retail stores as you can see in the table below. Type or retailer| Example|
Independent| De vrolijke aap (a toy store in Heino)|
Multiple chains| Intertoys, Dixons|
Supermarkets| C1000, Jumbo, Albert heijn|
Department stores| Bijenkorf|
Catalogue stores| Whekamp.nl|
Discount stores| OP = OP shop|
Emerging store types
There are a lot of new store formats for example:
* Outlet Stores
* Factory Shops
* Factory Outlets
* Television channels
* Internet traders
The factory shop is a shop attached to a factory. A factory shop sells normally products that are imperfect produced in the adjacent factory. In other words goods that may not be satisfactory produced in nearby factory. For example: The factory shop is offering a wide range of merchandise such as: * Football
* Toys and Gifts
* Beauty and Fragrance
This is all discounted. A lot of what they sell is branded or is originally made for other high street stores and supermarkets.
Television sales channels
A lot of companies that provide have a shopping channel such as “thuiswinkelen” this allows the consumer to order online by phone.
The internet changed our way of shopping, and is gaining in popularity more and more. This has three advantages: * Convince shopping over internet allows consumer to shop online without having to leave their house * Choices this is seen as the biggest advantages as the internet allows access to wide range of products from across the world for example EBay, this gives advantage to internet over shopping centre. * Cost in general, goods sold online are much cheaper than those sold in shops and the expenses to run the website is relatively less than running physical shops.
Online and physical stores
At this business model you will have online and a physical store. People can order online, but can pick up their product at their local store. But people can also look in the store for a product but order it online and let it get delivered at their doorstep. There are a lot of advantages with this business model such as: * Use established brands that are already trusted by the customer * They can buy larger quantities from their supplier, so they get bigger discounts * You have more options of promotion when you are a smaller company because people can always reach you through the internet. The disadvantage is that their prices aren’t always competitive.
Service versus product retailing
There are a lot of service retailers on shopping locations such as: * Banks
These organisations have to have a very effective extended marketing mix. More and more product retailers realise that they need the three extra elements of the extended marketing mix: * People (for example a good service desk)
* Physical evidence (for example staff uniforms, attractive brochures) * Processes (different ways to pay)
Classification of retailers
Retailers can be classified from a lot of viewpoints for example higher number of employees and sales turnover is indication of a tall structured organisation. There are also other factors such as the size and product strategy, for example: bol.com that sells a big variety of products but also second handed...