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162 Cards in this Set
- Front
- Back
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Types of Retail site deliniation
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-Freestanding isolated sites
-Unplanned clustered sites -Planned clustered sites |
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Freestanding Isolated sites
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store stands alone without neighboring sites
ex: Costco |
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Unplanned clustered sites
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cluster of retail establishments that has evolved through a retail process
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Planned Cluster Sites
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carefully planned and developed
ex: mall |
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5 Principle Site Evaluations
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-Principle of interception
-Principle of Cumulative attraction -Principle of compatibility -Principle of store congestion -Principle of accessibility |
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Principle of Interception
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intercepting customers as they travel from one location to another
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Principle of cumulative attraction
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multiple similar stores grouped together have greater drawing power
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Principle of Compatibility
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complimentary merchandise mixes of businesses located together brings more customers and more sales
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Principle of Store Congestion
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as locations become more saturated with stores,people, etc. the site becomes less attractive
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Principle of accesibility
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the easier the site is to visit, the more likely customers will come again
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1st step of evaluating a retail site
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seeing whether or not it can support a business
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Business associated Site
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draws from neighboring businesses
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Important considerations
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-Clearly defined stores
-Vacant Stores -Parking -Landscaping -Lease |
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Restrictive covenants
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protect clients and businesses from having similar businesses in same area
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Straight lease
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Fixed amount over life of lease
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Percentage lease
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Related to store sales/profit. Rent changes & based on location.
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Graduated lease
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Increase in lease over time
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Net lease
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all rental responsibilities to client not landlords
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Classification of retailers
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14 Shops, centers, boutiques, stores
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Specialty stores
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restrict offerings to one tye such as shoes
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Specialty stores also called
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limited line stores
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Specialty chains
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compan operates 2 or more specialty units from a central location
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Dept. stores
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opening branches that feature merchandise at flagship store
-hard & soft goods -apparel & accessories |
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Vendor-in-store Shops
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small boutiqes in dept. stores for specific designers
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Spinoff Stores
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specialty stores belonging to dept. stores and feature one merchandise classification
ex: Macy's Charter Club |
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Spinoff stores also called:
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twig stores
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Boutiques
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feature limited assortments of high-fashion merchandise for affluent customers
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Vendor Free-standing Stores
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stores operated by designers or manufacturers
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Multi-Channel Marketing
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use every type of marketing that compliments each other
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Off-site retailers
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magazines, online, TV
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Licensees
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retailers given permission to operate stores with merchandise of only one manufacturer
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Subspecialty stores
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restrict merchandise offerings to one very narrow inventory
ex: petites |
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Off-price merchants
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buy late in the season,or purchase closeouts
ex: TJ Maxx |
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Vendor Discount Outlets
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oulets with leftover merchandise
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Retailer closeout centers
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sell leftover goods at reduced prices
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Catalog Operations
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catalogs
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Kiosks, Pushcarts, Street Vendors
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busy streets, malls, marketplaces
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Visual Merchandising
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everything that is seen when a consumer enters a store
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Types of store environment
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-Physical
-Psychological |
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Physical
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trigger psychological expressions
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Store Image made up of
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physical and pscychological
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Store Image
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the mental image of the store
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Store Atmospherics
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-Sight Appeal
-Sound Appeal -Scent Appeal -Touch Appeal -Taste Appeal |
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Sight Appeal
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visuals
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Sound Appeal
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-"White Noise" hum so you don't hear noise
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Scent Appeal
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fragrances, air fresheners
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Touch Appeal
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ability to touch clothes
(not online shopping) |
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Taste Appeal
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Cafes and refreshements in store
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Store Theatrics
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-Retailing as Theater
-Decor Themes -Store Events |
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Principles to remember for planning a display
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-in-demand merch.
-time -keep display clean -change often |
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Goal of Visual Merchandising
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to sell merchandise
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Types of window displays
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-Closed window displays
-Open Window displays -Interior Product Display |
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Closed Window displays
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solid backing
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Open window displays
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can see store in background
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Interior Product Display
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counter top, showcase, wall displays
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Remote Display
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- used away from store location
- free-standing & target tourists often in hotels - Sometimes at one end of mall |
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AIDA
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-Attention getting
-Interest arousing -Desire creating -Action inducing |
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Internal employee search
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hire within company
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External employee search
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fresh ideas and new blood
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Unity of Command
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how many supervisors an employee is accountable to
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Span of Control
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how many suboordinates you're in charge of
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Retail Staffing Process
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1)Position Statement
2)Personnel Recruitment 3)Personnel Selection 4)Personnel Training 5)Personnel Supervision 6)Personnel Evaluation 7)Personnel Compensation |
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Organizational Principles Categories
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-Bureaucratic Organization
-Adaptive Organization |
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Bureaucratic Organization
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-Centralized
-Individual Approach -Formal -Close Supervision (single) -Narrow Span |
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Adaptive Organization
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-Decentralized control
-Team Approach -Informal -Loose Supervision -Wide Span |
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5 Organizational Principles
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-Centralization
-Specialization -Lines of Authority -Unity of Command -Span of Control |
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Centralized
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concentrated decision making at management level
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Decentralized
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delegated decision making
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Specialization
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how much responsibility you have/various tasks
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lines of Authority
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relationship between subordinate & supervisor
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Merchandise Division Organization
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-Chairman/CEO
-Sr. VP -Divisional Manager -Buyer -Assistant Buyer |
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Shrinkage
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total losses or discrepancies from theft, error, or damage
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Causes of Shrinkage
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shoplifting, internal theft
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To minimize shoplifting:
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-be aware of ppl in dept.
-ask them if they need help -keep valuables out of reach -know your prices |
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Common Errors
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-not counting merchandise correctly
-Marking goods wrong -error in adding up slips -Making incorrect change |
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Internal Theft
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employee dishonesty
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Shrinkage
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total losses or discrepancies from theft, error, or damage
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Causes of Shrinkage
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shoplifting, internal theft
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To minimize shoplifting:
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-be aware of ppl in dept.
-ask them if they need help -keep valuables out of reach -know your prices |
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Common Errors
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-not counting merchandise correctly
-Marking goods wrong -error in adding up slips -Making incorrect change |
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Internal Theft
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employee dishonesty
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Types of internal theft
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-Embezzlement
-Forgery -Direct Theft -Helping others |
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Merchandise Management
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focuses on planning and controlling the retailer's merchandise mix and its corresponding merchandise budget
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Merchandise Mix Concepts
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-Product Line
-Product Item -Product Unit -Merchandise Variety -Merchandise Assortment -Merchandise Support |
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Product Line
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grouping of related products where relationship is important
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Product Item
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specific product whithin product line that is unique and clearly distinguishable
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Product Unit
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Total # of particular item that a retail has in stock
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Merchandise Variety
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# of different product LINES stocked in store
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Merchandise Assortment
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# of different product ITEMS stocked in store
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Merchandise Support
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planning and controlling of # of units the retailer should have on hand
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SKU
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Stock Keeping Unit
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In planning combination of product lines one must consider:
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1)Product Line Compatability
2)Product Line attributes 3)Product Line Profitability 4)Product Branding 5)Product Lifestyle 6)Market Appropriateness 7)Lifestyle Merchandising 8)Competitive Conditions 9)Supply Considerations Merchandising Mix Strategies |
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Product Line Compatibility
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-Subsititute
-Complement -Unrelated |
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Substitute
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products consumers will use for the same prupose
ex: White T from diff. stores |
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Complement
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When products go together
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Unrelated
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Products are unrelated
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Product Line Attributes
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-Product Bulk
-Product Standardization -Required Services levels -Required Selling Methods |
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Product Bulk
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weight or size of product
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Product Standardization
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Uniformity of a product
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Required Services levels
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alterations
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Required Selling Methods
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different for different items
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Product Branding
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-Vendor National Brands
-Private Brands -Retail Store Brands -Licensed Merchandise |
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Retail Store Brands
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(Nordstroms, GAP, etc.)
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Product Lifecycle
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-Introductory Products
-Growth pdts -Mature pdts -Declining pdts |
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Introductory products
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low sales
high risk low profit |
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Growth products
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accelerating sales
high profit low risk |
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Mature products
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high and stabilized sales
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Declining products
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many competitors
low profit declining sales |
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Lifestyle Merchandising
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based on a lifestyle
ex: Ralph Lauren caters to Hamptons crowd |
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Market Appropriateness
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-Relative Advantage
-Affinity -Triability -Observability -Complexity |
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Relative Advantage
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extent to which new product is percieved as better than others
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Affinity
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extent to which a new product can be tested
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Triability
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extent to which new product is consistent with consumers current buying and usage behavior
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Observability
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extent to which a favorable attribute can be seen by a consumer
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Complexity
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extent to which a product can be easily understood and used
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Competitive Conditions
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-Direct Competitors
-Indirect Competitors -Exclusive product competition -Selective product competition -Intensive produce competition |
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Direct Competition
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people with same merchandise mix and format as you
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Indirect Competition
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same store but diff. merchandise
ex: Coach boutique and outlet |
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Exclusive product competition
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no competition for a particular line or item
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Selective product competiton
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have few competitors
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Intensive product competition
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have lots of competitors
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Supply considerations
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-Availability
-Reliability |
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Availability
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do you have what the customer wants in stock?
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**Merchandise Mix Strategies
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-Narrow Variety/ shallow assortment
-Wide Variety/Shallow Assortment -Narrow Variety/Deep Assortment -Wide Variety/ Deep Assortment |
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-Narrow Variety/ shallow assortment
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- 1 or 2 product lines with 1 or 2 items in each line
ex: small boutique |
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-Wide Variety/Shallow Assortment
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-Stock a little bit of everything
-wide selection of product lines, limit selection of each line |
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-Narrow Variety/Deep Assortment
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appeal to select group by offering 1 or 2 product lines w/ vast selection in each line
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Wide Variety/ deep assortment
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one-stop shopping
-satisfying most needs ex: typical dept. store |
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The Merchandise Planning Process
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-Market Considerations
-Product Considerations -Brand/image considerations -Financial considerations -Fair and Dependable supply considerations |
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Fair and dependable supply considerations
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narrower supply more common
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Brand/image
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know your vision
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Considerations for preparing buying plans
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-inventory Cost
-inventory Variety -Inventory Quantity -Inventory Timing |
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Inventory Cost
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total dollar amount company can spend on goods to achieve financial objectives
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Inventory Variety
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breadth of goods retailer should stock to satisfy target consumers
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Inventory Quantity
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how many of each item the retailer should stock for expected sales
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Inventory Timing
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when goods should be offered for sale to satisfy market demand
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www.fashioncenter.com
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-info. on diff. tradeshows around the world
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Advantages of buying from several suppliers
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-dess dependance on 1
-greater access to market info -Better service -Wider selection of products |
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Advantages of buying from single supplier
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-Quanitity discounts
-Favored customer treatment -Cooperative effort in developing products |
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Advantages of Private Label Programs
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-retailers have design control
-retailers pay less for goods -can make lower-priced knockoffs |
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Disadvantages of private label
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-large financial investment
-manuf. done overseas -slow customer acceptance of products |
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Advantages of buying from foreign sources
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-lower cost
-unique products -smaller orders possible -gives jobs |
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General Merchandise Manager
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directs store fashion philosophy, determines overall purchasing budget, makes decisions
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Divisional Merchandise Manager
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-2nd in command
-responsible for merchandising a division |
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Buyer
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recieves merchandise budget, plans purchases and also develops private label products
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Fashion Specialists
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assist and advise buyers and merchandisers
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Purchasing Execs
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-GMM
-Divisional MM -Buyer -Fashion Specialist |
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Purchase Planning
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-Consumer research
-Examination of past sales -in-store advisory services |
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In-Store advisory services
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fashion coordinators and directors
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Market Consultants
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-Resident buying Offices
-Fashion Forecasters |
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Resident buying offices
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provide info on new resources, hot items, check on orders
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Fashion Forecasters
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-make fashion predictions
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Market Visits
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-Resident buying office
-Trade Shows -Showrooms |
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Resident buying office
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assists buyers at home base and wholesale markets
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Making the purchase
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-market rep consultaion
-Management conferences -Writing the order |
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Frequent shopper Program
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Price
Purchases Points Prizes Pro bono |
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Price
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members recieve lower prices
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Purchases
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more you spend, more rewards you recieve
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points
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use points to buy things they like
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Pro bono
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customers get certain percentage of their money donated to charity
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Personalization
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"Good morning Ms. Condella"
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Presto
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treat customers special
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