Retail Management, Global Edition

Cover......Page 1
Title Page......Page 2
Copyright Page......Page 3
Brief Contents......Page 4
Contents......Page 5
Preface......Page 12
PART 1 An Overview of Strategic Retail Management......Page 22
Chapter Objectives......Page 23
The Framework of Retailing......Page 24
Reasons for Studying Retailing......Page 26
The Special Characteristics of Retailing......Page 30
The Importance of Developing and Applying a Retail Strategy......Page 31
The Home Depot Corporation: Successfully Navigating the Omnichannel Landscape......Page 32
The Retailing Concept......Page 35
Chapter Summary......Page 39
Web-Based Exercise: blog (www.bermanevansretail.com)......Page 40
The Current Economic Situation in the United States......Page 41
The Effect of the Current Economic Climate on Retailing......Page 42
Strategic Options for Retailers......Page 43
Chapter Objectives......Page 45
Overview......Page 46
Value and the Value Chain......Page 47
Retailer Relationships......Page 49
Customer Relationships......Page 50
Channel Relationships......Page 57
The Differences in Relationship Building Between Goods and Service Retailers......Page 58
Technology and Relationships in Retailing......Page 60
Customer and Supplier Interactions......Page 61
Ethics......Page 63
Social Responsibility......Page 64
Consumerism......Page 65
Chapter Summary......Page 67
Web-Based Exercise: Sephora (www.sephora.com)......Page 68
Improving the Performance of Service Retailers......Page 69
The Strategy of Pal’s Sudden Service: Baldrige Award Winner......Page 71
Chapter Objectives......Page 72
Overview......Page 73
Organizational Mission......Page 74
Ownership and Management Alternatives......Page 76
Goods/Service Category......Page 78
Personal Abilities......Page 79
Time Demands......Page 80
Sales......Page 81
Satisfaction of Publics......Page 82
Image (Positioning)......Page 83
Identification of Consumer Characteristics and Needs......Page 85
Controllable Variables......Page 86
Uncontrollable Variables......Page 88
Specific Activities......Page 89
A Strategic Planning Template For Retail Management......Page 91
Key Terms......Page 95
Web-Based Exercise: Angie’s List (www.angieslist.com)......Page 96
Opportunities and Threats in Global Retailing......Page 97
Foreign Retailers in the U.S. Market......Page 99
Case 2: Stores That Accommodate Those with Physical Limitations......Page 101
Case 3: Is the Proliferation of Job Titles Helping or Hurting?......Page 102
Case 4: Competition and Quick Foodservice......Page 103
Ideas Worth Stealing......Page 105
PART 2 Situation Analysis......Page 110
Chapter Objectives......Page 111
Retail Institutions Characterized by Ownership......Page 112
Independent......Page 113
Chain......Page 115
Franchising......Page 117
Leased Department......Page 121
Vertical Marketing System......Page 122
Chapter Summary......Page 124
Questions for Discussion......Page 125
Web-Based Exercise: 7-Eleven (www.franchise.7-eleven.com)......Page 126
Managerial Issues in Franchising......Page 127
Franchisor–Franchisee Relationships......Page 128
Chapter Objectives......Page 131
The Wheel of Retailing......Page 132
Scrambled Merchandising......Page 134
The Retail Life Cycle......Page 135
Mergers, Diversification, and Downsizing......Page 137
Cost Containment and Value-Driven Retailing......Page 138
Retail Institutions Categorized By Store-Based Strategy Mix......Page 139
Food-Oriented Retailers......Page 140
General Merchandise Retailers......Page 143
Chapter Summary......Page 150
Web-Based Exercise: Dillard’s (www.dillards.com)......Page 151
Chapter Objectives......Page 152
Overview......Page 153
Direct Marketing......Page 155
Emerging Trends......Page 157
The Steps in a Direct-Marketing Strategy......Page 160
Direct Selling......Page 162
Vending Machines......Page 164
The Role of the Web......Page 165
The Scope of Web Retailing......Page 166
Factors to Consider in Planning Whether to Have a Web Site......Page 168
Examples of Web Retailing in Action......Page 171
Airport Retailing......Page 173
Chapter Summary......Page 174
Web-Based Exercise: “Charts & Data” section of Internet Retailer’s Web site (www.internetretailer.com)......Page 176
Appendix Omnichannel Retailing......Page 177
Developing a Well-Integrated Omnichannel Strategy......Page 178
Special Challenges......Page 180
Case 2: Will the Favorites of Today Remain Popular?......Page 181
Case 3: Omnichannel Strategies of Top Retailers......Page 182
Case 4: Omnichannel Food Retailing Still Needs Work......Page 183
Ongoing Recovery......Page 184
Mash-Up......Page 185
Tracking Trends......Page 186
Gender Trends......Page 187
PART 3 Targeting Customers and Gathering Information......Page 188
Chapter Objectives......Page 189
Overview......Page 190
Consumer Demographics......Page 191
Consumer Lifestyles......Page 193
Retailing Implications of Consumer Demographics and Lifestyles......Page 195
Consumer Needs and Desires......Page 197
Attitudes toward Shopping......Page 198
Where People Shop......Page 200
The Consumer Decision Process......Page 201
Types of Consumer Decision Making......Page 204
Impulse Purchases and Customer Loyalty......Page 205
Retailer Actions......Page 207
Retailers with Concentrated Marketing Strategies......Page 208
Chapter Summary......Page 209
Key Terms......Page 210
Web-Based Exercise: Claire’s (www.claires.com) and Icing (www.icing.com)......Page 211
Chapter Objectives......Page 212
Overview......Page 213
Information Flows in a Retail Distribution Channel......Page 214
Avoiding Retail Strategies Based on Inadequate Information......Page 215
Building and Using a Retail Information System......Page 216
Database Management......Page 218
Gathering Information through the UPC and EDI......Page 221
The Marketing Research Process......Page 222
Secondary Data......Page 225
Primary Data......Page 228
Chapter Summary......Page 231
Web-Based Exercise: Coca-Cola Retailing Research Council (www.ccrrc.org)......Page 232
Case 2: The Convenience Economy Comes of Age......Page 233
Case 3: Are Hot Retailers of 2015 Still Hot?......Page 234
Case 4: Navigating the Shopper Universe through Big Data......Page 235
How Do You Attract and Satisfy Millennials?......Page 236
PART 4 Choosing a Store Location......Page 240
Chapter Objectives......Page 241
The Importance of Location to a Retailer......Page 242
Trading-Area Analysis......Page 243
The Use of Geographic Information Systems in Trading-Area Delineation and Analysis......Page 245
The Size and Shape of Trading Areas......Page 248
Delineating the Trading Area of an Existing Store......Page 250
Delineating the Trading Area of a New Store......Page 251
Characteristics of Trading Areas......Page 254
Characteristics of the Population......Page 257
The Nature of Competition and the Level of Saturation......Page 260
Chapter Summary......Page 262
Questions for Discussion......Page 263
Web-Based Exercise: Web site of Site Selection Online (www.siteselection.com)......Page 264
Chapter Objectives......Page 265
The Isolated Store......Page 266
The Unplanned Business District......Page 267
The Planned Shopping Center......Page 270
The Choice of a General Location......Page 275
Pedestrian Traffic......Page 276
Parking Facilities......Page 277
Transportation......Page 278
Specific Site......Page 279
Terms of Occupancy......Page 280
Chapter Summary......Page 282
Web-Based Exercise: Main Street America (www.preservationnation.org/main-street)......Page 283
Case 2: Organize, Optimize, Synchronize......Page 284
Case 3: Removing Barriers to Cross-Border Commerce......Page 285
Case 4: Warehouse Management: Right Time, Right Place......Page 286
Part 4 Comprehensive Case......Page 287
PART 5 Managing a Retail Business......Page 292
Chapter Objectives......Page 293
Setting Up a Retail Organization......Page 294
Dividing Tasks among Channel Members and Customers......Page 295
Grouping Tasks into Jobs......Page 296
Developing an Organization Chart......Page 297
Organizational Arrangements Used by Small Independent Retailers......Page 298
Organizational Arrangements Used by Department Stores......Page 299
Organizational Arrangements Used by Diversified Retailers......Page 301
Human Resource Management in Retailing......Page 302
The Special Human Resource Environment of Retailing......Page 304
The Human Resource Management Process in Retailing......Page 306
Chapter Summary......Page 314
Web-Based Exercise: Macy’s, Inc. has dedicated to “Careers After College” (www.macyscollege.com)......Page 315
Chapter Objectives......Page 316
Profit Planning......Page 317
Asset Management......Page 318
The Strategic Profit Model......Page 320
Other Key Business Ratios......Page 321
Financial Trends in Retailing......Page 322
Budgeting......Page 325
Preliminary Budgeting Decisions......Page 326
Ongoing Budgeting Process......Page 327
Resource Allocation......Page 329
Productivity......Page 330
Chapter Summary......Page 331
Web-Based Exercise: QuickBooks (http://quickbooks.intuit.com/tutorials)......Page 332
Chapter Objectives......Page 333
Operations Blueprint......Page 334
Store Format, Size, and Space Allocation......Page 336
Personnel Utilization......Page 338
Store Maintenance, Energy Management, and Renovations......Page 339
Inventory Management......Page 341
Store Security......Page 342
Insurance......Page 343
Credit Management......Page 344
Technology and Computerization......Page 345
Crisis Management......Page 347
Chapter Summary......Page 348
Web-Based Exercise: Pricer (www.pricer.com/en/Solutions)......Page 349
Case 2: Manager, Training and Development......Page 350
Case 3: Senior Manager of Digital Operations......Page 351
Case 4: Retail Shrinkage: A Significant Problem......Page 352
Predictions of 2016 Retailing Trends......Page 353
PART 6 Merchandise Management and Pricing......Page 358
Chapter Objectives......Page 359
Merchandising Philosophy......Page 360
Degree of Centralization......Page 362
Personnel Resources......Page 363
Forecasts......Page 365
Innovativeness......Page 367
Assortment......Page 370
Brands......Page 373
Allocation......Page 376
Category Management......Page 377
What Retailers Think about Manufacturers......Page 378
Innovativeness Software......Page 379
Assortment and Allocation Software......Page 380
Chapter Summary......Page 381
Web-Based Exercise: TXT Retail Web site (http://-txtretail.txtgroup.com/solutions/­assortment-planning-buying/)......Page 382
Chapter Objectives......Page 383
Gathering Information......Page 384
Selecting and Interacting with Merchandise Sources......Page 386
Evaluating Merchandise......Page 387
Negotiating the Purchase......Page 388
Concluding Purchases......Page 389
Receiving and Stocking Merchandise......Page 390
Reordering Merchandise......Page 392
Logistics......Page 393
Performance Goals......Page 394
Order Processing and Fulfillment......Page 395
Transportation and Warehousing......Page 397
Customer Transactions and Customer Service......Page 398
Inventory Levels......Page 399
Merchandise Security......Page 400
Reverse Logistics......Page 401
Inventory Analysis......Page 402
Key Terms......Page 403
Web-Based Exercise: “Business” section of the U.S. Postal Service’s Web site (www.usps.com/business)......Page 404
Chapter Objectives......Page 405
Inventory Valuation: The Cost and Retail Methods of Accounting......Page 406
The Cost Method......Page 407
The Retail Method......Page 409
Designating Control Units......Page 412
Sales Forecasting......Page 413
Inventory-Level Planning......Page 414
Planning Purchases......Page 417
Unit Control Systems......Page 419
Perpetual Inventory Systems......Page 420
Unit Control Systems in Practice......Page 421
Stock Turnover and Gross Margin Return on Investment......Page 422
When to Reorder......Page 424
How Much to Reorder......Page 425
• Key Terms......Page 426
Web-Based Exercise: benchmarking section of the Retail Owners Institute Web site (http://retailowner.com/Benchmarks)......Page 427
Chapter Objectives......Page 428
Overview......Page 429
The Consumer and Retail Pricing......Page 430
The Government and Retail Pricing......Page 432
Manufacturers, Wholesalers, and Other Suppliers—and Retail Pricing......Page 434
Competition and Retail Pricing......Page 435
Retail Objectives and Pricing......Page 436
Broad Price Policy......Page 437
Price Strategy......Page 439
Implementation of Price Strategy......Page 444
Price Adjustments......Page 448
Key Terms......Page 451
Web-Based Exercise: Neiman Marcus (www.neimanmarcus.com)......Page 452
Case 2: Adapting to the Internet of Things (IoT)......Page 453
Case 3: High Marks by Suppliers and Wholesalers for Convenience Stores......Page 454
Case 4: Data-Driven Pricing......Page 455
Knocking Off the Knockoffs?......Page 457
PART 7 Communicating with the Customer......Page 460
Chapter Objectives......Page 461
The Significance of Retail Image......Page 462
The Dynamics of Creating and Maintaining a Retail Image......Page 463
A Store-Based Retailing Perspective......Page 465
A Nonstore-Based Retailing Perspective......Page 475
Encouraging Customers to Spend More Time Shopping......Page 477
Chapter Summary......Page 480
Questions for Discussion......Page 481
Web-Based Exercise: Johnny Rockets (www.johnnyrockets.com)......Page 482
Chapter Objectives......Page 483
Advertising......Page 484
Public Relations......Page 491
Personal Selling......Page 492
Sales Promotion......Page 495
Determining Promotional Objectives......Page 500
Establishing an Overall Promotional Budget......Page 501
Implementing the Promotional Mix......Page 502
Reviewing and Revising the Promotional Plan......Page 506
Key Terms......Page 507
Web-Based Exercise: Web site (www.entrepreneur.com/article/241607)......Page 508
Case 2: More than Price......Page 509
Case 3: Enhancing the In-Store Experience through Facial Recognition Software......Page 510
Case 4: Revitalizing Customer Loyalty......Page 511
Inside the Mind of Shake Shack’s Founder......Page 512
PART 8 Putting It all Together......Page 516
Chapter Objectives......Page 517
Overview......Page 518
Planning Procedures and Opportunity Analysis......Page 519
Defining Productivity in a Manner Consistent with the Strategy......Page 520
Performance Measures......Page 522
Scenario Analysis......Page 526
Control: Using the Retail Audit......Page 527
Undertaking an Audit......Page 528
Illustrations of Retail Audit Forms......Page 530
Chapter Summary......Page 532
Web-Based Exercise: American ­Customer Satisfaction Index (www.theacsi.org)......Page 533
Case 2: Envision the Future: Part 2......Page 534
Achieving Excellence in Retailing......Page 536
Research Methodology......Page 539
Appendix: Careers in Retailing......Page 540
Glossary......Page 547
Endnotes......Page 561
Name Index......Page 578
Subject Index......Page 582