Lamb N15
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Retailing involves all activities related to selling goods and services to consumers. Retailing makes up 11.6% of US employment, 13% of businesses, and 40% of the economy. Retail businesses contribute to the standard of living by providing goods and services and employing over 15 million people. Retailers can be classified by ownership as independent retailers, chain stores, or franchises. They can also be classified by level of service, product assortment, and price. Major types of retailers include department stores, specialty stores, supermarkets, drugstores, convenience stores, discount stores, and restaurants.
Lamb N15
- 1. Retailing KE=Y TERM5 KEEY CONCEPTS L01 retailing all the activities Discuss the Retailing as a % of U.S. employment Retailing as a % of U.S. businesses Retailing as a % of GDP directly related to the sale importance of goods and services to of retailing 11 6 % 13% the ultimate consumer for personal, in the U.S. e c o n o m y. 40% nonbusiness use Retailing plays a vital role in the U.S. economy L0 2 independent retailers retailers owned by a single for two main reasons. First, retail businesses person or partnership and not operated as part of a larger retail contribute to our high standard of living by providing a vast and diverse number of goods institution and services. Second, retailing employs a large part of the U.S. working population—more chain stores stores owned and than 15 million people. operated as a group by a single organization Explain the dimensions STORE 1— Ownership franchise the right to operate a by which retailers can be — Level of service business or to sell a product classified. Many different kinds — Product assortment gross margin the amount of money of retailers exist. A retail establishment can be the retailer makes as a percentage of classified according to its ownership, level of sales after the cost of goods sold is service, product assortment, and price. On the basis of ownership, retailers can be broadly subtracted differentiated as independent retailers, chain stores, or franchise outlets. The level of service retailers provide can be classified along a continuum of high to low. Retailers also classify L0 3 department store a store housing several themselves by the breadth and depth of their product assortments; some retailers have concentrated product assortments, whereas others have extensive product assortments. departments under one Finally, general price levels also classify a store, from discounters offering low prices to roof exclusive specialty stores where high prices are the norm. Retailers use these latter three buyer a department head who variables to position themselves in the marketplace. selects the merchandise for his or her department and may also be responsible for promotion and Describe the major types of retail operations. The major types of personnel retail stores are department stores, specialty stores, supermarkets, drugstores, convenience stores, discount stores, and restaurants. Department stores specialty store a retail store specializing in a given type of carry a wide assortment of shopping and specialty goods, are organized into relatively merchandise independent departments, and offset higher prices by emphasizing customer service and decor. Specialty stores typically carry a narrower but deeper assortment of merchandise, supermarket a large, departmentalized, self-service retailer emphasizing distinctive products and a high level of customer service. Supermarkets are that specializes in food and some large self-service retailers that offer a wide variety of food products and some nonfood nonfood items items. Drugstores are retail formats that sell mostly prescription and over-the-counter scrambled merchandising the medications, health and beauty aids, cosmetics, and specialty items. Convenience stores tendency to offer a wide variety of carry a limited line of high-turnover convenience goods. Discount stores offer low-priced nontraditional goods and services general merchandise and consist of four types: full-line discounters, specialty discount under one roof retailers, warehouse clubs, and off-price retailers. Finally, restaurants straddle the line drugstore a retail store that stocks between the retailing and services industries; although restaurants sell a product—food pharmacy-related products and and drink—to final consumers, they can also be considered service marketers because they services as its main draw provide consumers with the service of preparing food and providing table service. convenience store a miniature supermarket, carrying only a limited line of high-turnover convenience goods (f)20l2Cengag