UGA TXMI 5250 - Final Exam Study Guide (16 pages)

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Final Exam Study Guide



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Final Exam Study Guide

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Pages:
16
Type:
Study Guide
School:
University of Georgia
Course:
Txmi 5250 - Global Retail
Global Retail Documents
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TXMI 5250 Exam 4 Study Guide Retailing in UK Belgium and Netherlands Brief Intro European Retailing Adoption of new technology depends on o Scale Compares population to retail sales Germany and France are the two most populated countries in Europe so they typically have higher retail sales UK had highest retail sales in EU on apparel o Concentration Large retailers use efficient logistic systems Is it fragmented mom and pops or concentrated In EU the concentration is getting higher big players buying out smaller No Italian companies on the top list In the UK 2 3 of stores are independently owned CBD are called high streets in UK o Forms of Business Chain stores 10 or more in US called multiples there not a lot of chains in the EU o Regulation Most laws have to do with large scale formats Planning laws strictest Belgium Netherlands and France more chains creating small stores called hard discounters 700 SKUs little convenient stores for low process Former Soviet Block States laws are loose there o Profitability Needs to foster innovations and development Any item has to stay at full price for 28 days before you can mark it half off helps mom and pops because they can t compete with the half off prices Big 4 France Germany Italy and UK largest populations and stable governments The European Union 28 nations Bulgaria Romania and Croatia recently joined 28 of all world trade 500 million population Over 17 trillion in GDP Cannot see them as one nation Green Countries o Didn t want to join EU o Iceland Norway Switzerland and Lichtenstein Started with EU Coal and Steel community in 1950 was a way to have peace and stability and free trade 6 countries started it Gradual process to unification Single Currency o There is no single currency o Eastern nations still cannot adopt the Euro because they are not stable enough o Germany bailed out Greece because they both use Euro Common Language o 23 languages o 90 of schools teach English Turkey o Has been on the waiting list since 2004 o Eurasian Nations Connects Europe and Asia but is considered an Asian country which is why they don t want them to join The population is huge which could be an issue because their culture is very different from anyone else in EU Muslim o Could end up having more power than Germany which would be a problem o 10 years ago Turkey was not a great place o Why they should join Entrance way to the black sea and other oil countries surround them and the EU is the number 1 trading partner for Turkey The EU People The Population Bomb o Demand for budgets pensions o Can the EU handle the aging population o Europe s average age is predicted to be 52 in 2050 Poland is the worst o Germany and Italy have 1 3 births per family government giving cash to parents for having children o In US we have 2 1 births for two reasons Immigrants have more pregnancies Teen pregnancy Corruption o Huge problem Online o Italy still doesn t buy online because the whole nation hasn t gone wireless yet o 2003 to 2014 went from less than 1 to 16 in UK o Sweden ranks number 1 in internet penetration higher than US o Pure Play Sell online only etailing Italy and Spain have no pure play retailers PPP Big Mac Index Euro overvalues US dollar LB has changed drastically now it is like 0 6 to the dollar United Kingdom Retail o Retailing is sophisticated acquisition sales are high online more mature than US promotions and heavy discounts are popular consumers have changed and are demanding more discounts they are starting to buy less on apparel now History o Kelts arrived in 1000 BC o English crown established in 15th century o Parliamentary Monarch is the current ruling They do no have full control at all o Strong since of nationalism but on a country to country basis within Retail Sector o England London Manchester and Birmingham o Scotland Glesco o Ireland Belcast Language o No official language on Constitution but most speak English Society o Unofficial caste system o Never ask people where they are from o 2 million Muslims live in UK many different people live there o A lot of overt discrimination but things are starting to change o People are very private o Meetings typically formal unless everyone is equal if one person has more power they are the only people that talk if all people are equal ideas flow freely UK Food Retailing TESCO o 2 on Global Retailer Index 1 on food and apparel o Largest employer in UK 250 000 employees and 1700 stores o Introduced private label food to UK o F F clothing label o 80 of sales from UK and yet they are 2 in the world British LOVE this store o Similar to WalMart but offer hypermarkets and convenient stores ASDA o Wanted to be like WalMart o Market Spoiler Effect When one retailer starts to sell goods below cost like WalMart o WalMart bought them out and brought them into their format Sainsbury o International company o 28 UK Food Oligopoly o Strong private labels o Tesco ASDA and Sainsbury own 80 of food o They all care more about the environment o UK consumers want quick convenient daily shopping trips similar to developing nations Power and Competition in UK Private Labels o Consumers tend to want private labels over other brands o Advertised nationally o 45 in Switzerland o Premiumisation Raising the status of a private label to a competing brand Better profit margins 20 Retailers have power o Vertical own the factory making it and can tell them what they want at what price and quality o Horizontal dictate prices competition between brands Working hours o Only 32 work 46 hours a week in US a lot of people work over 40 hours o Paid vacation Germans have 30 days paid vacation US has 12 days Belgium has 22 days plus holidays UK Apparel Retailers Department Stores o The oldest types of stores John Lewis o 26 stores 40 000 employees House of Fraser o Only department store to increase sales during the recession 61 stores high end o Concessions Department stores lease out space to another brand within its stores Ex Alexander McQueen within House of Fraser H F has no power Lose gatekeeper power buyers of goods 15 lower gross margins than if you sold it yourself Harrods o 1 tourist destination in London o Has a dress code no sweatpants or flip flops o Sells foods and extremely high end clothes Marks and Spencer o Only sell their private brand o 11 7 market share of all apparel sells o Really good job at lingerie and basics Matalan o UK s most successful retailer o High street quality at low price o One of the first


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