Chapter 1

Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use.

Distribution Channel

Supply Chain is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.

Retailers are the final business within a supply chain which links manufacturers to consumers.

Vertical Integration – firm performs more than one set of activities in the channel.

Backward Integration – retailer performs some distribution and manufacturing activities.

Forward Integration – manufacturers undertake retailing activities.

Add Value

■     Provide Assortment - Buy other products at the same time
■     Break Bulk - Buy it in quantities customers want
■     Hold Inventory - Buy it at a convenient place when you want it
■     Offer Services - See it before you buy; get credit; layaway

Retail Strategy

•       Need to identify the competition - Intratype competition & Intertype competition

•       Identifying customers - Demographic and Life-style trends (target customers)

•       The product and service mix

•       Long-term comparative advantage