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Ryerson University
Retail Management
RMG 100
Frances Gunn

Week 1 Retailing – a set of business activities that adds value to the products and services sold to the customers for their personal or family use. A retailer – is a business that sells products or services to consumers for personal or family use. Functions performed by retailers: + Providing assortments (assortments = choice or variety) + Breaking Bulk (selling products in a small units) + Holding Inventory + Providing Services +Increasing the Value of products and services Vertical Integration : combination in one company of two or more stages of production Political (government regulations & legal issues) + Tax policy + employment laws + environmental regulations ( regulations that protect the water, land, air, and animals) + trade restrictions ( restriction on the trade of goos or services between two countries) and tariffs ( a tax imposed on a product when it is imported into a country + political stability Economic : critical factors : our economy continues to grind along in second gear. Output is growing slowly, incomes are rising slowly, and most importantly, employment has risen by a quarter of a million in the past year. Economic ( state of retail report) = cost of goods sold (COGS), the need to control non-revenue related expenses and static merchandise pricing. (E) Affects customer purchasing power & cost of capital are economic growth, interest rates, exchanges rates, and inflation rate Social : Demographic & cultural factors – Affect customer needs & size of potential markets : Helath consciousness, Population gowth rate, Age distribution, Career attitudes, emphasis on safety Technological : Can lower barriers to entry, reduce minimum production levels and influence outsourcing decisions : R&D activity, Automation, technology incentives, Rate of technological change. EX Issue and innovations Issue: time starves consumers Innovation: selling prepared foods. Week 2 1. Explain how retailers can be classified 2. Describe retail formats 3. Identify elements of retail mix 1. Retails can be classified by level of service, product lines, price and ownership.  Level of service Self Service Full Service (factory outlets, Discount stores exclusive stores Ware house clubs) Product Assortment +Variety (breath of merchandise) – different product +assortment (depth of merchandise) (choice of style) phone – different style A Narrow Variety and a shallow assortment Retailer stocks limited number of products and a very small range in those products too. Ex: Convince Store A Broad Variety and Shallow Assortment A Retailer offers a large variety of products in the store but doesn’t offer much of a choice within the range EX: Discount Store (type of department store, which sells products at prices lower than traditional retail outlets A Narrow Variety and a Deep Assortment Retailer focuses only on a select category of products but offers an extensive assortment in those products EX: speciality or category killer ( Best Buy – electronics , IKEA, TOYRUS ) A Broad variety and a Deep assortment A retailers who offers a broad variety and a deep assortment of products in that variety offers a large choice to the customers EX: Department Store  Price Low Price High price (Good Value) (Quality Image)  Ownership Classification of Ownership : *Independent Retailers ( owned by an individual, family or partnership) * Chain Stores (One of a series of stores owned by one company and selling the same merchandise ) *Franchises (operating under the same name ex. McDonals) 2. Types of retailers - Speciality Stores : stores that sell only one kind of merchandise and provides a high level of service in a small store Ex: GAP, SEPHORA ( NARROW/ DEEP) - Department Stores: sells a variety of goods including clothing, furniture, home supplies EX: SEARS, THE BAY (BROAD/ MED-DEEP) - Supermarkets : retail market that sells food and other house hold goods EX: SOBEYS - Discount Stores : Stores that sells products at lower price compare to other retail company EX: WALMART ( BROAD/ SHALLOW) - Convenience stores : limited range of household goods and groceries EX: 7 eleven - Off price retailers : sells name brand or designer products at discount prices EX: WINNERS - Club stores : costumers have to buy the products at large quantity EX: COSTCO - Drug stores: sell cosmetic and drugs EX: SHOPPERS, PHARMA PLUS - Super Stores : more than the average amount of variety stock + Hypermarket : A large retail store combining a supermarket and a full-line discount store (WALMART) + Super center : Retail store combining groceries and general merchandise goods with a wide range or serv
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