Retail Management
UNIT 1: Introduction To Retail Management
Lesson 1: Introduction to the world of Retailing
Study Materials – September 2020
Retailing is one of the important subjects for Business Marketing Students to
understand the channel and product structures conclude retailer. This means that
no matter how a product starts its journey, it almost always ends up at a retailer.
While a manufacturer may produce products, pass through a wholesaler, or
involve transactions with brokers or agents, retailers are the ones with direct
connection to the consumers.
____________________________________________________________________
1. Retailing - A business activity that adds value through the products or services sold
to the consumers for their personal or family use. Frequently, people think of
retailing only as the sale of products in stores, but retailing also involves the sale of
services.
2. The retailer’s role in a supply chain - The retailer is a business that sells products
and services to Consumers for personal or family use. Retailers are the key
component in a supply chain that links manufacturers to the consumer. The supply
chain is a set of firms that make and deliver goods and services to consumers. The
retailers add value and are more efficient at adding this value than manufacturers or
wholesalers.
3. Retailers typically buy products from Wholesalers and Manufacturers and resell to
Consumers. Why did retailers need? It is easier and cheaper for consumers to cut
out the middlemen, the wholesalers, and retailers and buy directly from
manufacturers? The answer is, generally, no, because retailers add value and are
more efficient at adding this value than manufacturers or wholesalers.
Page 1 of 69
, Source:
https://www.googl
e.com/search?
q=retail+chain+wo
rk&rlz=1C1SQJL
4. Retailing create value - The value-creating activities undertaken by retailers
include:
Providing an assortment – is offering an assortment enabling their customers
to choose from a wide selection of products, brands, sizes, and prices at one
location.
Breaking Bulk – is a method or process of dividing larger quantities into smaller
when products reach to the final market.
Holding inventory – is used to ensure that customer service targets can always
be met without compromising cash flow or running out of stock.
Providing services – by providing services it make easier for customers to buy
and use the products.
Retailers Perform Wholesaling and Production Activities
5. Wholesalers buy and store merchandise in large quantities from
manufacturers and resell to retailers.
Vertical integration: when a firm performs more than one set of
activities in the channel.
Page 2 of 69
, Backward integration: arises when a retailer performs some wholesaling
and manufacturing activities
Forward integration: occurs when a manufacturer undertakes retailing
and wholesaling activities.
Page 3 of 69
, Lesson 2: Types of Retail
Study Materials – September 2020
Beyond the difference in the products they provide, there are constitutional differences
among retailers that influence their scheme and results. One of the reasons the retail
industry is so large and mighty is its diversity. For example, stores vary in size, in the
kinds of services provided, in selecting merchandise they carry, and in their possession
and management structures.
____________________________________________________________________
TYPES OF RETAIL STORES
1. DEPARTMENT STORE
Their very wide product mixes characterize department stores. That is, they carry
many different kinds of merchandise, which may include hardware, clothing, and
appliances. The product mix's depth depends on the store, but the department
store's main distinction is the ability to provide an extensive range of products within
a single store.
Source: https://www.google.com/search?q=robinson+department+store&source
Page 4 of 69
UNIT 1: Introduction To Retail Management
Lesson 1: Introduction to the world of Retailing
Study Materials – September 2020
Retailing is one of the important subjects for Business Marketing Students to
understand the channel and product structures conclude retailer. This means that
no matter how a product starts its journey, it almost always ends up at a retailer.
While a manufacturer may produce products, pass through a wholesaler, or
involve transactions with brokers or agents, retailers are the ones with direct
connection to the consumers.
____________________________________________________________________
1. Retailing - A business activity that adds value through the products or services sold
to the consumers for their personal or family use. Frequently, people think of
retailing only as the sale of products in stores, but retailing also involves the sale of
services.
2. The retailer’s role in a supply chain - The retailer is a business that sells products
and services to Consumers for personal or family use. Retailers are the key
component in a supply chain that links manufacturers to the consumer. The supply
chain is a set of firms that make and deliver goods and services to consumers. The
retailers add value and are more efficient at adding this value than manufacturers or
wholesalers.
3. Retailers typically buy products from Wholesalers and Manufacturers and resell to
Consumers. Why did retailers need? It is easier and cheaper for consumers to cut
out the middlemen, the wholesalers, and retailers and buy directly from
manufacturers? The answer is, generally, no, because retailers add value and are
more efficient at adding this value than manufacturers or wholesalers.
Page 1 of 69
, Source:
https://www.googl
e.com/search?
q=retail+chain+wo
rk&rlz=1C1SQJL
4. Retailing create value - The value-creating activities undertaken by retailers
include:
Providing an assortment – is offering an assortment enabling their customers
to choose from a wide selection of products, brands, sizes, and prices at one
location.
Breaking Bulk – is a method or process of dividing larger quantities into smaller
when products reach to the final market.
Holding inventory – is used to ensure that customer service targets can always
be met without compromising cash flow or running out of stock.
Providing services – by providing services it make easier for customers to buy
and use the products.
Retailers Perform Wholesaling and Production Activities
5. Wholesalers buy and store merchandise in large quantities from
manufacturers and resell to retailers.
Vertical integration: when a firm performs more than one set of
activities in the channel.
Page 2 of 69
, Backward integration: arises when a retailer performs some wholesaling
and manufacturing activities
Forward integration: occurs when a manufacturer undertakes retailing
and wholesaling activities.
Page 3 of 69
, Lesson 2: Types of Retail
Study Materials – September 2020
Beyond the difference in the products they provide, there are constitutional differences
among retailers that influence their scheme and results. One of the reasons the retail
industry is so large and mighty is its diversity. For example, stores vary in size, in the
kinds of services provided, in selecting merchandise they carry, and in their possession
and management structures.
____________________________________________________________________
TYPES OF RETAIL STORES
1. DEPARTMENT STORE
Their very wide product mixes characterize department stores. That is, they carry
many different kinds of merchandise, which may include hardware, clothing, and
appliances. The product mix's depth depends on the store, but the department
store's main distinction is the ability to provide an extensive range of products within
a single store.
Source: https://www.google.com/search?q=robinson+department+store&source
Page 4 of 69
