Test Two ReviewOpen air set upFree-standing anchorsLimited small specialty storesMany located near enclosed mallsLow occupancy costsConvenientModest vehicular and pedestrian trafficConvenientLarge trade areasTop down planning is old fashion and has management telling the stores what to do.Leases, 1yr and 3yrAt Walmart locations if i McDonalds moves out a Starbucks moves into the space.McDonalds owns Boston Market.Inner city -retailers achieve high sales volume, higher margins and higher profitsUnmet demand tops 25% in many inner city marketsyoung professionals.Chapter 8Airport Stores:Rents are 20% higher than mallsSales/square ft are 3-4 times higher than mallsBest airports are ones with many connecting flightsconsist middle and upper level storesbring in foot trafficPower centers- Shopping centers that consist primarily of collections of big-box retail storesLargest 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-10,000Progression 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)TexasFloridaNew York700 counties in the US are losing population.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.Wednesday, March 2, yTest Two ReviewChapters 5,6,7,8 Will be covered on the test.Chapter 5•Target Market- the market segments toward which the retailer plan to fo-cus its resources and retail mix.•EDI- Electronic Data Change•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 work-Tesco Metro: bring convenience to city center location by specializing in ready-to eat-meals-Tesco Superstores: traditional stores-Tesco Extra: one-stop destination with the widest range of food and non-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 chain1Wednesday, March 2, y-India: Prefers small family-owned stores, cheaper stores, and restricts for-eign investment•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-son only-Business cycles- retail markets can be affected by economic conditions- 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•Financial Goals- not necessarily profits, but return on assets (ROA) is the primary focus.•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 similar formats.•Brand Image- is the personality behind a brand. Johnson and Johnson “Gen-tle”•CRM- Customer Relationship Management- How a company manages their customers•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 City2Wednesday, 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•Top down planning is old fashion and has management telling the stores what to do.•Leases, 1yr and 3yr•At Walmart locations if i McDonalds moves out a Starbucks moves into the space.•McDonalds owns Boston Market.3Wednesday, March 2, y•Inner city -retailers achieve high sales volume, higher margins and higher profits-Unmet demand tops 25% in many inner city markets-young professionals.Chapter 8•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•Power centers- Shopping centers that consist primarily of collections of big-box retail stores•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 chainwill 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.4Wednesday, March 2, y•Walmart is the biggest retailer in the world.•Stage stores- Stage company owns 800