Week Seven: The Retail Segment

 

Retailing is the service business of selling products directly to the consumer.

 - Retailing is America's second largest industry, both in number of establishments and number of employees.
 - if the retailing is not effective, all levels of the soft goods pipeline are effected, because products are not sold.
 - To encourage sales, the presentation of items in the store must educate the consumer on how to wear and buy articles of clothing.

BASIC STEPS OF RETAILING

1. Planning the types and quantities of goods to sell
2. Buying the goods from suppliers (vendors)
3. Receiving the goods
4. Arranging the goods to sell
5. Selling the goods to consumers

FUNCTIONAL AREAS OF FASHION RETAIL

• Merchandising

• Financial Control

• Store Operations

• Personnel

• Sales Promotion

 

MAIN TYPES OF APPAREL RETAILERS

• General Merchandisers

 ie Sears

• Specialized Merchandisers

ie William Sonoma

Department Stores

• large scale general merchandisers, often with a variety of catagories and price points

Branch Stores

• branches off one main or "Flagship" store. i.e. Saks Fifth Avenue

Chain Stores

• Chains with no main store.  i.e. JC Penney

Discount Stores

 

• sell merchandise at lower than market level prices, i.e. Target, Walmart
 "Wheel of merchandising"
• frequently force down prices in conventional dept.  stores
• offer minimal services, minimal setting
• high volume buying and low profit margins reduce cost

Off-Price Discounters

• Focus on high fashion goods at reduced prices
• do not place advance orders, instead sell production overruns, surplus stock, discontinued items and seconds

Factory Outlets

• manufacturer owed and operated discount stores
• stocks overruns, cancelled orders and discontinued items
• sometimes located in malls in outlying areas so as not to compete with full price retailers selling the line

Warehouse Wholesale Clubs

 

• often 20-40 percent less than discount store prices
• volume sales
• membership fees
• bare-boned warehouse type buildings
• little customer service

Dollar Stores

• very low prices, excitement but limited stock

Specialty Stores

• carry large selections of limited classifications of merchandise - i.e. children's, maternity, books

Specialty Chains

Boutiques

 

• small, stand alone stores that sell unusual or few-of-a-kind items
• strong editorial presences and personalized customer service

Licensed Merchandise Stores

• sells branded items - sports teams, movie, industry i.e. Sports Authority, Disney Store

Airport Retailing

Non Store Retailers

Kiosks

Mail Order Retailing

• merchandise through catalogs (direct mail marketing)
• sometimes dual merchandising - both catalog and store  i.e. Victoria Secret

E-retailers

• exclusively online, i.e. Amazon

Telecommunications Retailing

• i.e. QVC, Home Shopping Network

Personal Selling

• i.e. Avon, Amway

Retail Trade Associations - National Retail Federation

Read:

Chapter 12 in the text

This article about Walmart: http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/the-weight-of-walmart-a-company-with-an-annual-revenue-more-than-the-gdps-170-countries/articleshow/16708912.cms

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Due on October 17th

Homework:

Choose a retail outlet. It can be a department store, specialty store, catalog, anything.

Conduct a thorough examination of the outlet, what it specializes in, who its' customers are, and what its current seasons offerings are. Find visual examples, either from the internet, magazines, or, if you choose an actual store, take pictures.  Type your findings for next week.

This is a two part assignment. This part does not have to take the form of a finished presentation.

 

Homework, part 2:

Either photograph or scan the completed work that you have done for class thus far.  We will work on creating a digital visual portfolio.

Both parts are due on October 15th.