Classes of in-store retailers

SUPPLEMENTARY READING

SPEECH PRACTICE

1. Comment on the following statement “Direct marketing and non-store retailing are roughly the same thing”.

2. Some consumers don’t trust mail orders and catalogue retailing. Is this true?

3. If you were to open a retail business, would you prefer to open an independent store or to own a store under a franchise arrangement? Explain your preference.

4. What major issue should be considered when determining a type of retail business?

Abetter way to classify in-store retailers is by type of store. Each of the following types of stores may be owned independently or by a chain.

Department Stores are large retail establishments consisting of several parts, or departments that sell a wide assortment of products. Macy’s in New York, Harrods in London, and Au Printemps in Paris are outstanding examples of large, inner-city department stores.

Department stores are distinctly service-oriented. Along with the goods they sell, they provide credit, delivery, personal assistance, liberal return policies, and a pleasant atmosphere. They are, for the most part, shopping stores. That is, consumers compare merchandise, price, quality, and service in competing department stores before they buy.

Discount stores are self-service, general-merchandise outlets that sell goods at prices that are lower than usual. They do so by operating on lower markups, locating their retail showrooms in low-rent areas, and offering minimal customer services.

Catalogue Discount Showrooms are retail outlets that display well-known brands and sell them at discount prices through catalogue sales within the store. Colourful catalogues are available in the showrooms (and sometimes by mail). The customer selects the merchandise, either from the catalogue or from theshowroom display. Then he or she writes up an order on a form provided by the store and hands the order form to a clerk. The clerk retrieves the merchandise from a room that is located away from the selling area and serves as a warehouse.

Specialty Stores are retail outlets that sell a single category of merchandise. Specialty stores may sell shoes, men’s or women’s clothing, baked goods, children’s wear, photo equipment, flowers, or books. Most specialty stores cater to local markets, remain small, and are individually owned. However, there are a few large specialty chains. Regardless of their size, all specialty stores offer specialized knowledge and service to their customers.

Supermarkets are large self-service stores that sell primarily food and household products. They stock canned, fresh frozen and processed food, paper products, and cleaning products. Supermarkets may also sell such items as toys and games, drugs, stationery, books and magazines, plants and flowers, and small items of clothing.

Convenience Stores are small food stores that sell a limited variety of products but remain open well beyond the normal business hours. Almost 70 percent of the people who use convenience stores live within a mile of the store. They are popular and are growing in number.

Warehouse stores are minimal-service retail food outlets. They appeared in the early 1970s to test discount pricing as a marketing strategy in food retailing.

In warehouse stores the merchandise is left in packing cases stoked on pallets on the floor. Prices are displayed on the cases but are not individually marked on the items. Customers may be expected to provide the paper bags or cartons in which to take their purchases home. The stores themselves are located in low-rent buildings and have large inventories on the premises.

Дата добавления: 2014-11-29