Chapter 13 Retailing
Retailing: the set of business activities that add value to products and
services sold to consumers for their personal or family use; including
products bought at stores, through catalogues, and over the Internet, as well
as services such as fast-food restaurants, airlines, and hotels.
Multichannel strategy: selling in more than one channel (e.g., store,
catalogue, kiosk, and Internet).
Choosing Retail Partners
The level of difficulty a manufacturer has in getting retailers to purchase its
products is determined by the degree to which the channel is vertically
For retailers, it is important to know from which manufacturers its
customers want to buy.
Manufacturers need to know where their target market customers expect to
find their products.
Channel Member Characteristics
Generally, the larger and more sophisticated the channel member, the less
likely that it will use intermediaries.
Larger firms often find that by performing the distribution functions
themselves, they can gain more control, be more efficient, and save more
Identifying Types of Retailers
Conventional supermarket: offers groceries, meat, and produce with
limited sales of nonfood items, such as health and beauty aids and general
merchandise, in a self-service format.
Big-box food retailer: comes in three types: supercenter, hypermarket, and
warehouse club; larger than a conventional supermarket; carries both food
and nonfood items.
Convenience Store: provides a limited number of items at convenient
locations in small stores with speedy checkout. General Merchandise Retailers
General merchandise retailer: may be a discount store, specialty store,
category specialist, department store, drugstore, off-price retailer, or extreme
value retailer; may sell through multiple channels, such as the Internet and
Discount store: offers a broad variety of merchandise, limited service, and
Specialty store: concentrates on a limited number of complementary
merchandise categories in a relatively small store.
Category specialist: offers a narrow variety but a deep assortment of
o Category killer: offers an extensive assortment in a particular
category, so overwhelming the category that other retailers have
Department stores: retailers that carry many different types of
merchandise, and lots of items within each type, of