Wednesday March 2 y Chapters 5 6 7 8 Will be covered on the test Test Two Review Chapter 5 cus its resources and retail mix EDI Electronic Data Change Target Market the market segments toward which the retailer plan to fo Human Resources Management Employees are key to build a sustainable competitive advantage Employee Branding Developing positive organizational culture Strategies for recruiting and retaining talented employees Flow of information Vendor Distribution Center Store By decreasing cost in the flow of information there is more money avail able to invest in means better services increase in breadth and depth and decrease in prices Cross selling is when sales associates in one department sell complimen tary merchandise from other departments An example of multi channel retailing is the UK based TESCO that has sev eral different categories including Tesco Express small stores located close to where customers live and Tesco Metro bring convenience to city center location by specializing in Tesco Superstores traditional stores Tesco Extra one stop destination with the widest range of food and non work ready to eat meals food products Retail centers China vs India China Increasing operating costs lack of managerial talent design center for middle and high income and underdeveloped and inefficient supply chain 1 India Prefers small family owned stores cheaper stores and restricts for eign investment Wednesday March 2 y Market factors include Market size large markets attractive to large retail firms Growth typically more attractive than mature or declining Seasonality can be an issue as resources are necessary during peak sea Business cycles retail markets can be affected by economic conditions son only military base towns Brand Image set of associations consumers have about a brand that are usually organized around some meaningful themes Positioning the design and implementation of a retail mix to create in the customer s mind an image of the retailer relative to its competitors also called brand building Chapter 6 primary focus Financial Goals not necessarily profits but return on assets ROA is the Societal Goals helping to improve the world around us Tom s Shoes Personal Goals self gratification status respect Strategy planning for the future Long Term Strategy looks at growth expected and competition Retail Markets are when customers have similar needs and retailers have Brand Image is the personality behind a brand Johnson and Johnson Gen CRM Customer Relationship Management How a company manages their Ikea is a Swedish furniture company that also has a cafeteria area known for their Swedish meatballs 5th avenue is the high end store area in New York City similar formats tle customers 2 Wednesday March 2 y Mall popularity is going down but they are just being redesigned instead of dissipating completely The United States has the most retail space per square foot per person The Ritz Carlton is known for excellent service They know your name When companies join together it is called a merger or a joint venture Net Sales are equal to Gross Sales plus Promotional Allowances minus Re turns Discounts and Credits for Damaged Goods Chapter 7 Big Box stores exs Target Home Depot Open air set up Free standing anchors Limited small specialty stores Many located near enclosed malls Low occupancy costs Convenient Modest vehicular and pedestrian traffic Convenient Large trade areas what to do Leases 1yr and 3yr McDonalds owns Boston Market space 3 Top down planning is old fashion and has management telling the stores At Walmart locations if i McDonalds moves out a Starbucks moves into the Inner city retailers achieve high sales volume higher margins and higher Unmet demand tops 25 in many inner city markets Wednesday March 2 y profits Chapter 8 young professionals Airport Stores Rents are 20 higher than malls Sales square ft are 3 4 times higher than malls Best airports are ones with many connecting flights consist middle and upper level stores bring in foot traffic box retail stores Power centers Shopping centers that consist primarily of collections of big Largest Mall in the US is the King of Prussia MSA Metropolitan Statistical Area 50 000 or more inhabitants or an Urbanized area with a total MSA population 100 000 Micropolitan Statistical Area 10 000 Progression analysis factors effecting the sales of existing stores in a chain will have the same impact upon the stores located at new sites being considered Top Populated States Cali By Far Texas Florida New York 700 counties in the US are losing population 4 Wednesday March 2 y Walmart is the biggest retailer in the world Stage stores Stage company owns 800 stores including Beall s 70 of the United States are middle class 30 minutes is the avg time spent in a grocery store If a new mall is added it will be redesigned as an outdoor shopping center 5