Professional Documents
Culture Documents
Lecture
Friday 10.00am to 12.00pm
Geography 211 Lecture Theatre
Teaching
Unit Coordinator, Lecturer & Tutor
Dr Louise Grimmer
2
Essay 20 Week 5
3
Team Agreement 10 Week 6
Team Report 30 Week 10
Team Presentation 20 Weeks 12 and 13*
(you must present in each week)
Lodging Assignments
• Full Name
• Student ID
• Unit Code
• Sales staff make it easier for customers to compare, buy and use
products.
The Retailer’s Role in a Supply Chain
Retailers are the final business within a supply chain which links
manufacturers to consumers.
A Supply Chain is a set of firms that make and deliver a given set
of goods and services to the ultimate consumer.
• Finance
• Purchasing
• Accounting
• Management Information System (MIS)
• Supply management including
warehouse and distribution
management (logistics)
• Design and new product development
• Human Resource Management
• Marketing
Opportunities in Retailing:
Entrepreneurial Opportunities
Retailing provides opportunities for people
who want to start their own business.
Some of the world’s richest people are
retailing entrepreneurs.
1-35
Retail Strategy: Competitors
• Competition between retailers that sell similar merchandise using different
formats, such as discount and department stores is called intertype
competition (e.g. Kmart and Myer; Target and Priceline).
• Increasing intertype competition has made it harder for retailers to identify
and monitor their competition. All retailers compete against each other for
the dollar consumers spend buying goods and services.
• Since convenience of location is important in store choice, a store’s
proximity to competitors is a critical factor in identifying competition for
bricks and mortar stores. Online offerings have ‘disrupted’ the traditional
view of competition.
1-36
Retail Strategy: Customers
• Retailers are responding to broad demographic and life-style trends in
society, such as the growth of the elderly, multiculturalism, the
importance of shopping convenience as the number of two-income
families grows.
Retail
Strategy
Pricing Location
Communication
Mix
Whole Foods Implementation
• Strategy - organic and natural foods supermarket chain
Assortment beyond organic/natural foods
• Private labels - Whole Food™, 360 Day Value™
• Love, trust, and employee empowerment
• Equality in compensation
Ethics
• Ethics are the principles governing individuals and companies that
establish appropriate behavior and indicate what is right and wrong.
• What is ethical can vary from country to country and from industry to
industry.
• Ethical principles can also change over time.
• Many companies have codes of ethics or conduct to provide
guidelines for their employees.
• However, many business decisions are not regulated by laws. Often
retail managers have to rely on their own codes of ethics – their
personal sense of what is right or wrong - to determine the right
thing to do.
Ethical Situations for a Retail
Manager
• Should a retailer sell merchandise that they suspect utilised child
labor?
• Should a retailer advertise that its prices are the lowest in an area
even though some items are not?
• Should a buyer accept an expensive gift from a vendor?
• Should a retailer charge a supplier a fee for getting a new
• Should salespeople use high-pressure sales when they know the
product is not the best for the customer’s needs?
• Should a retailer treat some customers better than others?
• Should a retailer promote a product as being ‘on sale’ if it never sold
it at a higher, non-sale price?
Keywords
• breaking bulk A function performed by retailers or wholesalers in which they receive
large quantities of merchandise and sell them in smaller quantities.
• ethics A system or code of conduct based on universal moral duties and obligations that
indicate how one should behave.
• holding inventory A major value-providing activity performed by retailers whereby
products will be available when consumers want them.
• intertype competition Competition between retailers that sell similar merchandise using
different formats, such as discount and department stores (e.g. Kmart and Myer).
• intratype competition Competition between the same type of retailers (e.g. Coles versus
Woolworths).
• wholesaler A merchant establishment operated by a concern that is primarily engaged in
buying, taking title to, usually storing, and physically handling goods in large quantities,
and reselling the goods (usually in smaller quantities) to retailers or industrial or business
users.
1. What is your favourite retailer?
2. Why do you like this retailer?
3. What would a competitive retailer have to
do to get your patronage?
Chapter 2 | Types of Retailers
• What trends shape today’s retailers?
• What are the different types of retailers?
• How do retailers differ in terms of how they meet
the needs of their customers?
• How do service retailers differ from merchandise
retailers?
• What are the types of ownership for retail firms?
General Trends in Retailing
• New types of retailers
• Globalisation
• Growth in services retailing
• Growth in omni-channel/omni-
shopping by traditional retailers
• Increased use of technology to
reduce costs and increase value to
customers
ANZSIC Codes for Retail Trade
G RETAIL TRADE
39 Motor Vehicle and Motor Vehicle Parts Retailing
40 Fuel Retailing
41 Food Retailing 411 Supermarket and Grocery Stores
412 Specialised Food Retailing
42 Other Store Based Retailing 421 Furniture, Floor Coverings, Houseware and Textile goods
Retailing
422 Electrical and Electronic Goods Retailing
423 Hardware, Building and Garden Supplies Retailing
424 Recreational Goods Retailing
425 Clothing, Footwear and Personal Accessory Retailing
426 Department Store Retailing
427 Pharmaceutical, Cosmetic and Toiletry Goods Retailing
43 Non-Store Retailing and Commission Based
Buying and/or Selling
Retailer Characteristics
• Successful retailers survive and prosper because they satisfy a group
of consumers’ needs more effectively than their competitors.