MARKETING CHANNELS Retail Management Berman Chapter 3 Version

MARKETING CHANNELS Retail Management Berman Chapter 3 Version 3. 0 1

Retail Channel Members • • • A. Retail Structure B. The Special Characteristics of Retailing C. Retail Trends D. Typology of Retail Institutions E. Retail Buying Organizations 2

• A. Retail Structure • Total retail sales • Growth of retail sales 3

B. Characteristics of Retailing – immediacy – importance of location • trading area characteristics • affinities, neighboring stores and types • pedestrian traffic counts • vehicular traffic counts and direction • transportation • visibility • lease terms 4

B. Characteristics of Retailing • Low average sale • High proportion of impulse sales – impulse - planned • 53% supermarket sales, 66% unplanned • planned = specifically 34%, instore = 66% – High seasonality 5

C. Retail Trends • • • conglomerate merchants increased market saturation leveraged buyouts high/low performance retailers strategic profit model – asset turnovers – net profit margin 6

D. Retail Institution Typology –by ownership • independents • chains • franchises 7

D. Retail Institution Typology – by strategy • mdse width, depth, consistency • food oriented retailers • general mdse retailers • non store-based retailers 8

E. Retail Buying Organizations • • • formality centralization buying vs mdse orientation inside-, outside-, cooperative buying orgs regularity 9