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Nayab Ali

Asad Raja

Jawad Hassan

Hammad Raja

Sunain Haider

S.M. Raza

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INTRODUCTION

Highly Competitive

Dynamic

Large Number of Retailers

Internet

Diversity

Low Cost and Differentiation Strategies

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CONSUMERS

Changing Nature

Baby boomers and generation Y

Growing diversity of U.S population

Increasing sophistication of Shoppers

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RETAIL INDUSTRY TRENDS

Cost Reduction

Scale Economies

Supply Chain

Big Boxes

Centralization

Analytical Methods

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TARGETING NEEDS OF SPECIFIC

SEGMENT

Reducing Cost and Prices

Developing new offers

Assortments Based on Climates

Best Buy Focus on Specific Customer Segments

Two Inc Targets Tween Segment

Chico Sells Specialty For Women

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GROWTH OF RETAIL SECTORS (2003-

2008)

Supercenters 2% to 5%

Warehouse clubs- 6% to 0%

Convenience store-5% to 0%

Jewelry store-5% to 8%

Shoe store-1% to 4% Furniture store-4% to 9%

Office supplies store-3% to 8%

Sporting goods stor-5% to 2%

Book store-4% to 5%

Hardware store-6% to 2%

Ecommerce- 26% to 8%

Non-store retailing-9% to 2%

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TRENDS IN U.S. FOOD RETAILERS

Format Where Most Food

Shopping Is Done

Average Annual Real Sales

Growth (1998-2003)

Conventional Supermarkets 61 % 1%

Supercenters 19 % 23 %

Limited Assortment

Supermarkets

6 % N/A

Warehouse Clubs 4% 10 %

Others Including

Convenience Store

10 % Varies

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SUPERMARKETS

Fresh Perishables

Targeting Specific Segments

Shopping Experience

Private Labels

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SUPERMARKETS ( CONTINUED )

Supercenters

Limited Assortment Supermarkets

Warehouse Clubs

Convenience Stores

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TRENDS IN U.S. GENERAL

MERCHANDISE RETAILERS

Department Stores

Full Line Discount Stores Specialty Apparel And Accessories Stores

Drug Store

Category Specialist Extreme Value Retailers

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TRENDS IN NON-STORE RETAILING

Internet

Catalogs

Wending Machines

TV Home Shopping

Online sales-25% growth per annum

Internet Sales-6% of total retail sales by 2008 40% of US Consumers search, compare and buy on internet

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MULTI-CHANNEL RETAILING

Retailers use Multiple Channels

Buy from Stores

Sales Associates

Buy from Retailers Website

Call and buy from retailer by Telephone

Free Shipping if bought from website

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FUTURE OF RETAILING

Cost Reduction

PDA (Personal Digital Assistant)

Virtual Dressing Room

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