An Introduction to RetailingRETAIL MANAGEMENT:A STRATEGICAPPROACH, RetailingRetailing encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sale to the fnal consumer.Issues in RetailingHow can we best serve our customers while earning a fair proft?How can we stand out in a highly competitive environment where consumers have too many choices?How can we grow our business, while retaining a core of loyal customers? The hilosophyRetailers can best address these questions by fully understanding and applying the basic principles of retailing, as well as the elements in a well-structured, systematic, and focused retail strategy.An Ideal !andidate for Retailing !areerBe a people personBe fexibleBe deisi!eHa!e anal"#ial s$illsHa!e s#a%inaTable "." The "# $argest Retailers in the %.&., '##"Rank Company$ Sales (million)# of stores # of employees1 Wal-Mart 219,812 4,414 1,383,0002 Home Depot 53,553 1,348 256,3003 Kroger 50,098 3,534 288,0004 Sears 41,078 2,960 310,0005 Target 39,362 1,381 223,5006 Alertso!"s 37,931 2,400 220,0007 Kmart 37,028 2,150 240,5258 #ost$o 34,797 369 64,5009 Sa%e&a' 34,301 1,773 193,00010 ()#) *e!!e' 32,004 3,770 270,000(igure ".) The High !osts and $ow rofts of Retailing(igure ".* A Typical !hannel of +istributionManufacturer&'olesalerFinal ConsumerRe#ailer(igure ".,The Retailer"s Role in the &orting rocess-ulti.!hannel RetailingA retailer sells to consumers through multiple retail formats/eb siteshysical stores(igure ".01.!. enney and -ulti.!hannel RetailingRelationship -anagement Among Retailers and &uppliers+(isa)ree%en#s %a" o*r:on#rol o!er 'annelpro+# alloa#ionn*%ber o, o%pe#in) re#ailersprod*# displa"spro%o#ional s*ppor#pa"%en# #er%sopera#in) fexibili#"+istribution Types+Exl*si!e2 suppliers ma3e agreements with one or few retailers that designate the latter as the only ones in a specifed geographic area to carry certain brands or products+In#ensi!e2 suppliers sell through as many retailers as possible+Sele#i!e2 suppliers sell through a moderate number of retailers(igure ".4!omparing +istribution Types(igure ".5 &pecial !haracteristics A6ecting RetailersRetailersStrategy Small Average SaleImpulse urc!aseopularityofStoresRetail &trategyAn o!erall plan ,or )*idin) a re#ail +r%Inf*enes #'e +r%s b*siness a#i!i#iesInf*enes +r%s response #o %ar$e# ,ores&i7 &teps in &trategic lanning-.(e+ne #'e #"pe o, b*siness /.Se# lon)0r*n and s'or#0r*n ob1e#i!es2.(e#er%ine #'e *s#o%er %ar$e#3.(e!ise an o!erall, lon)0r*n plan4.I%ple%en# an in#e)ra#ed s#ra#e)"5.E!al*a#e and orre#(igure ".8,ay $ess 9 :7port -ore- at TargetAspects of Target"s &trategyGro6#'0orien#ed ob1e#i!esAppeal #o a pri%e %ar$e#(is#in#i!e o%pan" i%a)e7o*sS#ron) *s#o%er ser!ieM*l#iple poin#s o, on#a#E%plo"ee rela#ionsInno!a#ionCo%%i#%en# #o #e'nolo)"Co%%*ni#" in!ol!e%en#Cons#an#l" %oni#orin) per,or%ane(igure "."#Applying the Retail !oncept#.stomer /r0e!tat0o!#oor10!ate1 2%%ort3al.e 1r04e!5oal /r0e!tat0o!6eta0l0!g#o!$eptRetailStrategy(igure "."" :liminating &hopper ;oredom!ustomer &ervice+A#i!i#ies *nder#a$en b" a re#ailer in on1*n#ion 6i#' #'e basi )oods and ser!ies i# sells.S#ore 'o*rsPar$in)S'opper0,riendlinessCredi# aep#aneSalespeople(igure "."' A !ustomer Respect !hec3list(o 6e #r*s# o*r *s#o%ers8(o 6e s#and be'ind 6'a# 6e sell8Is $eepin) o%%i#%en#s #o *s#o%ers i%por#an# #o o*r o%pan"8(o 6e !al*e *s#o%er #i%e8(o 6e o%%*nia#e 6i#' *s#o%ers respe#,*ll"8(o 6e #rea# all *s#o%ers 6i#' respe#8(o 6e #'an$ *s#o%ers ,or #'eir b*siness8(o 6e respe# e%plo"ees8Relationship Retailing+See$ #o es#ablis' and %ain#ain lon)0#er% bonds 6i#' *s#o%ers, ra#'er #'an a# as i, ea' sales #ransa#ion is a o%ple#el" ne6 eno*n#er7!oncentrate on the total retail e7perience7-onitor satisfaction 7&tay in touch with customers:6ective Relationship Retailing+9se a 6in06in approa'7It is harder to get new customers than to 3eep e7isting ones happy+(e!elop a *s#o%er da#abase7