Textbook Notes (362,789)
Canada (158,053)
RMG 200 (57)
Brent Barr (19)

ch 2 part 1

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Ryerson University
Retail Management
RMG 200
Brent Barr

Ch 2 Types of RetailersTRENDS IN THE RETAIL INDUSTRY Some of the most important changes involveChanging consumer preferencesIncreasing industry concentrationGlobalization of retailThe use of multiple channels to interact with customersIncreasing competition in the Canadian marketplaceThe growing importance of technology to retail successThe blurring of retail channelsRetail brandingGrowing Diversity of Retail FormatsThe initial category specialists in toys consumer electronics and home improvement supplies have been joined by a host of new specialists including Sport Chek Bed Bath and Beyond PETsMARTGrocery stores such as Loblaws are adding pharmacies and clothing and home dcor products to expand their retail mixMany new types of retailers coexist with traditional retailersIncreasing Industry ConcentrationNumber of different types of retailers has grown the number of competitors within each format is decreasingThe Canadian marketplace is powered by a small number of large retailers who dominate in their specific retail category eg Walmart Shoppers Drug Mart Best Buy Future Shop CostcoTrend toward a blurring of retail channels will continue eg Drugstores move into high end cosmetics and grocery stores invaded pharmacy businessRETAILER CHARACTERISTICS A PriceCost Trade OffThe difference between the retail mixes of department and discount stores illustrates the tradeoff retailers make between the price and assortment of merchandise they sell and the services they offer to their customersB Type of MerchandiseNorth American Industry Classification System NAICS Classification of retail firms into a hierarchical set of six digit codes based on the types of products and services they produce and sell o First two digitsfirms sector o Remain four digitsvarious subsectorsC Variety and AssortmentEven if retailers sell the same type of merchandise they might not compete directly because they appeal to different customer needs and thus offer different assortments and varieties of merchandise and servicesVariety breadth of merchandise the number of different merchandise categories within a store or department eg Shoes appliances apparel and cosmeticsAssortment depth of merchandisestock the number of SKUs within a merchandise category eg Running shoes dress shoes childrens shoes walking shoesSKU stock keeping unit the smallest unit available for keeping inventory control In soft goods merchandise a SKU usually means size colour and styleD Customer ServicesEg Bicycle stores offer assistance in selecting appropriate bicycle adjusting bicycles to fit individualEg Accepting credit and debit payment provide parking being open in convenient hoursE Cost of Offering Breadth and Depth of Merchandise and ServicesStocking a deep assortment is appealing to customers but costly for retailers
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