MARKETING CHANNELS

Retail Management
Berman Chapter 3
Version 3.0

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

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 • A. Retail Structure

• Total retail sales

• Growth of retail sales

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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
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 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

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

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

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

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